Spring is traditionally the time West Australian farmers buy and sell farms however the recent drought has divided the state into two distinct zones that will impact farm sales this year.
This year's winter produced good weather in southern agricultural areas and has resulted in good yields for many crops in this region while grain prices are higher than the past couple of years.
Northern regions of the agricultural area including Geraldton, Three Springs, Moora and Northam have had a poor year with many farms producing very little or no crop.
BankWest Rural and Regional State Manager WA Jim Watson said spring is most the common time of year Western Australian farmers look to sell their farms.
"Settlement will usually go through in February/March the following year and this gives farmers time to complete a final harvest," Mr Watson said. "This allows the new owner to take over in time for the next season."
This spring will see a number of farms bought and sold around the state however the increasing land prices over the last five years is expected to affect numbers.
"Agricultural land prices have increased in value by 10 to 20 per cent per year in the last few years in Western Australia so purchasing new land may be hard to rationalise for some farmers if they are coming out of a poor year," Mr Watson said.
"Despite this, spring is an ideal time to reassess financial circumstances and there are a number of things farmers can do to help with financial planning for the coming year," he said.
"Talking to your financial provider or bank should be the first step and preferably before harvest."
BankWest has agribusiness specialists available to help you through this process. In addition to a wide range of farm finance options we also have a highly competitive Harvest Line product to further leverage your cash flow.
ENDS
About BankWest Business
BankWest Business provides a full range of core and specialist business banking products and services to all business market segments from small business to large corporates. From market leading transaction and investment accounts through to flexible business loans and sophisticated Financial Market and International Trade products, we are an organisation committed to making a meaningful difference in the financial services marketplace with our simple and straightforward products. Our energetic approach and attitude aims to reject the status quo and present a significant challenge to the conventions and the competition.
BankWest Business has a presence in capital cities, rural areas and regional locations throughout Australia. We focus on key markets including Property Finance, Small Business, Commercial, Rural and Regional and Corporate.
We also offer a flexible range of products and competitive lending guidelines across specialist industries such as Aged Care, Childcare, Hotels/Accommodation, Franchise and Pharmacy. We recognise the value of the going concern of a business, along with the value of its people and brand, not just its fixed assets or balance sheet.
Our business banking managers have been selected for their industry knowledge and experience and take the time to get to know their customers' business to find the best products and services to meet their needs.
BankWest has been around for more than 100 years and is now part of the HBOS Australia group with assets of over $39 billion. Backed by our parent company HBOS plc, one of the world's largest financial services groups, we are providing a fresh customer experience and challenging the Australian market. BankWest is the fastest growing business bank in Australia*, and because we are growing, we will try harder to help grow your business.
*Measured by market share growth, number of new managers hired and number of new Business Banking Centres opened.
