FARM PURCHASE ADVICE

Whether looking to expand or to purchase the first farm, clients are helped to make the best decision. Our role is to provide an independent viewpoint encourage clients to step back and consider farms without bias. Our advice is direct and clear to ensure that any purchase decision is based on facts and that expectations are realistic.

Advice is provided on the physical attributes of the farm; soil quality and fertility, pastures and their development potential, weeds, pests, water supply, erosion and drainage. Information is also provided on the quality of the built structures such as fences, roads, yards and sheds, as they relate to the likely operation of a farm.

Advice is also provided on enterprises suitability such as regarding livestock types and cropping options. Production constraints are discussed such as acid soils, water supply, stock yards and infrastructure, drainage and issues likely to affect animal health.

If return to invested capital is the focus, budgets can be prepared to help in evaluating likely scenarios and risks or for presentation to financial institutions.

If NSW Land Tax is an issue for you the first step is to discuss the matter with your accountant. If needed, a business plan can be prepared to support an application for Land Tax exemption.

If the decision is taken to purchase a reasonably complex or large scale property a Farm Advisory Board can be established to oversee management and ensure quality business planning, governance and reporting through the first few years. This provides a transition to management period while new owners gain confidence with the management of the farm.

 

Note:

Farm dwellings are not normally inspected as we are not qualified in that area. Information should be sought however on the value of non-agricultural buildings, as that will be key in determining the agricultural value of the property. Important ratios can then be calculated such as $/DSE. Any expected rental return from dwellings, sheds,  etc, should be considered separately.