IN THE Albury-Wodonga region, rural land prices have reached a new level.
Land prices during the last two years has risen by approximately 25 per cent.
The lack of supply, good seasons, sound stock prices and low interest rates has made rural land a secure investment with many potential buyers in the market.
For farmers who want to reduce their land holdings or exit the market this is a good time to consider selling their land and realise on their farming interests.
The Albury-Wodonga region is currently on the verge of a short spring, having received only 380 millimetres of the annual 600mm rainfall.
Without short term good rain, the area will miss out on the finishing growth required by both livestock producers and grain growers.
Livestock prices for cattle have been in free fall over the winter months, something most producers would not have experience before.
Traditionally in the winter, prices are dearer due to the lack of supply.
However, this winter there has been an increase in fat cattle for sale.
Lower grain prices have made it more viable for grain fed cattle to enter the market.
In addition to this, large parts of Australia have experience dry conditions or drought.
Currently spring has seen a decrease of cattle numbers and the prices has improved slightly.
The decrease of cattle numbers is the result of some rain in the north reducing stock numbers from entering the market.
There have also been less cattle entering the market from feedlots in anticipation of our region spring flush of numbers.
Lamb and sheep prices have been the standout this year, with lamb prices holding a very respectable level.
While sheep prices have eased, the level is still acceptable for this time of the year when the bulk of surplus sheep are sold off.
While the season and cattle prices present concerns to a rural producer, the inquiry into the red meat processing sector is a matter that affects their future.
This inquiry was the response to the meat processors’ boycott of the Barnawartha Saleyards in Victoria in February, 2015.
The industry awaits the outcomes of the inquiry with keen interest.
*Stephen Paull is a director of Paull & Scollard based at Albury.