Seasonal outlook is dry for Inner Darling Downs farmers: HTW
The seasonal outlook is dry for Inner Darling Downs farmers, according to the June report from valuation firm Herron Todd White (HTW).
The chance of receiving median rainfall for much of South-East and Southern Queensland is between 25% to 35%, hence there are likely dry conditions ahead, it noted the winter season ahead as per the Bureau of Meteorology which has recently revised their rainfall forecasts.
"Many grazing operators in the Condamine and Moonie areas have banked on receiving some rain given planting on minimal moisture," Stephen Cameron a valuer at Herron Todd White noted.
"With the dry conditions we are seeing the migration of kangaroos also impacting on early fodder crops."
Those operators that have undertaken significant expenses in constructing exclusion fencing or forming part of a cluster group will now be able see the benefits, subject to controlling the kangaroo population within the boundary confines.
The report suggests that, "with a large number of graziers undertaking such development it has been timely for merino graziers, with the Eastern Market Indicator closed at 2,011 ac/clean kg at the end of May".
"This is up 38% from the previous year which will provide a significant boost to wool producers."
The report noted a common question in the market is "how much does a property with exclusion/ cluster fencing add value?"
"It’s a difficult question to definitively answer as there have been only a small handful of sales that have sold with similar fencing.
"It’s further difficult to analyse such sales in a rising market given it is unknown whether the premiums reflect the added value of the fence or broad strengthen in land values.
"Ultimately when property values stabilise we will be able to more accurately analyse the evidence to address this question."
However the HTW report concluded the simple fundamentals to determine the added value over a conventional fence will be reflective by the improved productivity of a property either through increased weaning rates by reduced wild dog attacks and or reduced grazing pressure by kangaroos or damage to crops by wild pigs.
Cameron forecasts that on the market front there will be continued demand for either good quality country or landholder purchasing neighbouring country to secure further scale.
