Farmland owners in Australia should consider polyethylene (PE) pressure pipe systems as one solution to improve access to water, which has now become an important factor for property values.
Buyers are keen on acquiring rural land that has a steady source of water, such as rainfall, aside from irrigation. Although other factors affect the value of land, the price of farmland in some regions can be four times more expensive in regions with a good amount of rainfall.
The Guyra town in New South Wales serves as one example where land prices are high due to higher than average rainfall in the region. An acre of grazing land may cost around $4,000 compared to $1,000 per acre in other places with less rainfall.
By complementing natural water sources with proper irrigation, farm owners can maximise the strong price growth in rural properties. According to a Rural Bank report, the median land price in most parts of Australia rose 3% on average each year in the last decade. In 2017, the report also showed that South Australia and Tasmania led the increase in median prices.
Average land prices in South Australia and Tasmania during the previous year rose 17.1% and 19.3%, respectively. In New South Wales, median prices increased 8.8%, while those in Victoria rose 9.5%.
On the contrary, Queensland farmland prices dropped 2.8%. Prices in Western Australia also fell 6.5%. The report based its findings on 239,000 property deals that spanned 288 million hectares worth almost $140 billion since 1998.
Volatile weather influences the value of farm property, so it’s important that owners and operators invest in pipeline systems that improve access to water. What is your strategy for irrigating rural land?