A panel discussing the main drivers for investment at the annual Tasmanian Dairy Conference pinpointed the Midlands as a region that had great potential for diverse farming.
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Agricultural investment banker David Williams believes water is the key to adding value to farming properties in the Midlands and South Esk.
Mr Williams, who recently invested $10 million in 10,000 megalitres of water in a Midlands and South Esk irrigation scheme, told conference attendees water would provide greater opportunities for the state’s farmers in the next few years.
“Farmers say they don’t need water, but the land use will change in the next five years as crops diversify,” Mr Williams said.
“What we’re looking for is new ways of farming and new ways of getting value from the same piece of land.
“You have a chance to reinvent the wheel. What I see is a change in land use in the Midlands and South Esk with farms expanding. There’s plenty of room for expansion,” he said.
However, Mr Williams advised dairy farmers to consider other opportunities outside their sector to build profitability in their operations.
“You need to think big. You need champions of particular areas. If you’ve got a champion and you think big enough the money is there,” Mr Williams said.
The topic of investment was one also discussed by panellist John Hewitt, director of Landmark Harcourts.
Mr Hewitt said Landmark Harcourts sold about 60 per cent of farms in Tasmania, and there was much interest in investing in the state from international buyers.
“We’re seeing a lot of interest from Europe as they see Tasmania as a safe place to invest,” Mr Hewitt said.
Selling large properties to investors requires a level of thinking beyond what you might be able to get for your farm, Mr Hewitt advised dairy farmers at the conference.
“When you’re selling to these people, you’re selling a business, so you have to think about how to sell a business,” Mr Hewitt said.
“You need to provide figures and statistics for analysts. Analysts want to know how profitable you’ve been so you need to tax and management accounts,” he said.
Both men were speaking on a panel which was chaired by DairyTas board member Greg Bott.
Other panel members were Compass Agri managing director Nigel Pannett and Moonlake Investments CEO Evan Rolley.
The 10th annual conference was held at Country Club Tasmania, Prospect Vale, and concluded with the Tasmanian Dairy Awards Dinner.