The latest Australian Farmland Index shows annualised total returns dipped in the latest quarter observed.
Rising interest rates are hitting farmland capital growth, with the latest quarterly update of a widely followed index showing annualised gains slipping below the 6.6 per cent rate achieved since inception., which tracks the performance of 63 different farming properties worth almost $2 billion, recorded an annualised gain of 4.3 per cent in the September quarter.
The 13 per cent-plus total annual return over the past seven years compares with the 9 per cent total return that would have come from investing in an exchange-traded fund tracking the performance of the SUnlike ETFs, investors cannot invest directly in a fund that tracks the Australian Farmland Index, while many of the participating funds are not open to retail investors.
“The smoothing provided by the index is similar to what you could expect from a diverse portfolio of investments in agriculture.”While growth rates were slowing, agribusiness veteran David Goodfellow said this did not imply that land prices would come down given rising demand for Australian farmland, especially from North American investors.is the biggest offshore investor in Australian agricultural assets.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How this Australian went from pony club to global equestrian sensationShowjumper Edwina Tops-Alexander on how she made it from suburban Sydney pony club to world-famous equestrian and businesswoman.
Read more »
Visions splendid: Australian photographer of the year awards – in picturesThe best pictures chosen from more than 3,000 entries across nine categories
Read more »
FTSE 100 hits record highBlue-chip stock index rises above previous record of 7,903 set in May 2018
Read more »
Massoud joined Australian protests against Iran, then the regime took his mumSince Background Briefing’s November investigation into surveillance of the Iranian diaspora in Australia, it’s received reports of harsh consequences for those who attend anti-government protests, and for their relatives.
Read more »
Rain gives Central Australian cattle producers confidence in 'exceptional' year aheadThe cattle country north-east of Alice Springs was so green after summer rains 'it hurt your eyes', according to one pastoralist. Now she and other producers have enjoyed another week of rain on their remote stations.
Read more »