Johnson Property Group

Innovators looking to off-farm investment

With three field days and a Royal Show under our belts this year, my team and I are unanimous in
our belief that WA’s agricultural industry is experiencing an almost unprecedented period of
accelerated change and innovation.

Technology has catapulted to an even more sophisticated level to help primary producers navigate
complex and ever-changing supply chains, labour issues, climate change challenges and shortages in
global fertiliser supplies. The challenge for farmers to remain relevant and forward-looking seems to
dominate conversation.

It was a privilege to spend time at this year’s field days talking through off-farm asset strategies. This
generation of farmers is constantly looking at ways of reducing the operation’s exposure to
influences such as weather cycles and commodity price fluctuations. 

These are just some of the factors beyond the business’ control that have pushed farmers to seek investments beyond the farm

This year Johnson Property Group (JPG) made sure the team on the ground at Mingenew, Dowerin
and Newdegate was diverse in market depth and skillsets, so that existing and new rural investors
were clear on how diversifying risk with property investment was a worthwhile strategy.

It was evident that farmers were actively pursuing yielding commercial assets to create succession
security. The decision to bring the pandemic tax incentives to an end in June 2023 also meant farm
businesses had started to look for alternatives to that instant write-off of machinery purchases. One
new JPG client has already acted on switching strategies, settling on a 6 per cent yielding commercial
property with a long-term lease for his $2.3 million investment.

We found the timing of the field days, in particular Newdegate, and the Perth Royal Show, provided
a good opportunity for potential rural investors to consider off-farm asset planning ahead of harvest.
Western Australia’s field days always provide a vital platform for exhibitors to showcase equipment,
agribusiness solutions, services and products. 

But above all, it’s a chance for community to connect and regroup. 

We’re counting the days until Wagin Woolorama rolls around again in five months’ time!