The high price of farmland in Australia has become significantly dependent on the region’s access to water, which could propel values by up to four times more. While irrigation is a factor, the level of rainfall has become more important in determining the value of farmland in the country. In New South Wales, for instance, the price of land on a dairy farm in Guyra could reach an average of $4,000 per acre.
Farms with below-average rainfall only cost $1,000 per acre. Even with no water shortage, some places could still be suffering from dry weather. The good news is that rural land still grew by 3% per year over the last decade.
According to rapidspray.net, pest-free land remains necessary even if it’s not as important as access to rainfall at the moment. Different types of agricultural sprayers from manufacturers are available on the market, which range from fertilisers to pesticides. These will complement a farm’s ability to produce quality crops, especially during a dry spell that Australian farmers believe is the worst they’ve encountered in recent years.
Guyra may have above-average rainfall that increases the value of its farmland, but most places in New South Wales are not that lucky. Drought currently plagues the entire state like other regions in the east coast. In Queensland, 60 per cent of it has had little to no rain in the previous months.
Despite the present situation, agribusinesses could still prepare for the worst. Some experts say that it is easy to predict the occurrence of drought. This manifested through the harvest of cotton and rice, which heavily depend on water. Other nations are impressed with Australian farmers’ ability to do so, given the dry conditions in the country.
Natural resources may serve as a key factor for the value of commercial real estate, although farmers should not ignore new technology and equipment. How does your farm remain in business despite the current drought?