October 2024 Rural Newsletter by Nutrien Harcourts GDL

OUR STORY

At GDL, we’re proud of our role in the Livestock and Real Estate markets across Queensland, the Northern Territory and New South Wales.

With agility and innovation at our core, our agency has been building relationships with local graziers and regional businesses and communities, big and small, for over 27 years. Operating through a network of 29 regional branches, working for our clients is at our heart. Our specialists utilise their extensive market knowledge and local expertise to service rural communities, grow opportunities, and deliver value to each and every one of our customers.

SeasonalconditionsacrossSouthernQueenslandandNorthernNewSouthWalesaregenerallywellimprovedonthis timelastyear ThisdifferencehascertainlybeenreflectedbytheEasternYoungCattleIndicatorwhichisapproximately 40-45%higherthanthesametimelastyear Theimprovementinpricing,heldupthroughadrywinterperiodacross muchofourcoverageregion Thisappearstoindicatethelongawaited/spokenof,rebuildoftheAmericanbeefherdis finallypositivelyimpactingtheAustralianmarket.Similarly,theNationalTradeLambindicatorhasalsostrengthened, sittingapproximately95-100%higherthanthistimelastyear

As a result of these factors confidence levels appear to have also lifted somewhat from those noted towards the end of 2023 That said, high interest rates and continued strong input prices do appear to be resulting in a shift from the seller's market we had previously been experiencing. Many properties placed to market are avoiding or cancelling auction campaigns in favour of the increased flexibility provided by private treaty and expression of interest Continued strong demand is notable to those first start and rural lifestyle properties particularly where these properties are positioned in relatively close proximity to urban amenities

Our local market has seen some larger aggregations become available and the large family operators and corporate interests required have materialised to result in a sale in many instances That said, the frequency of district record setting by recent property sales across most market segments has certainly slowed Most sales are now occurring within an expected market range and some 'cheaper' sales are becoming more common The prevalence of feedlots and intensive livestock property on the market has also had a notable increase in supply over the last 6 to 12 months and is likely a reflection of improved margins with lower feed costs, current high levels of demand for feedlot space and the resulting large numbers of cattle on feed, with regard to feedlots particularly

SouthernQueensland/NorthernNewSouthWalesUpdate-Continued

Whileavaluerneverlikestogeneralise,afewrecentsalesprovideapricepointguidesummarisedasfollows:

Oakey,evidenceshowscirca$40,000/haexstructuresforcentrepivotirrigationwithpermanentwaterallowance NorthStar,BlacktoredclayloamstransitionalBrigalowtoBoxcirca$10,000/haexstructuresfordrylandcultivation Durong,mixedBrigalowtoforestgrazingcirca$5,300/haexstructuresoverall(blendedrate)

Moonie,largelyBrigalowBelahgrazingcirca$4,500/haexstructuresoverall(blendedrate)

Charleville,largescalegrazingtypicalredmulgacirca$510/haexstructuresoverall(blendedrate)

Inadditionweareseeinganumberofsalesreflectingthefollowingonabreederarea,thoughsuchanalysisissubjective andlocation/attributedependant:

InnerDownsandSouthBurnettgrazingtypically$10,000-$20,000/AdultEquivalent

WesternMulgaLands$5,000-$10,000/AdultEquivalent

Lastly,HerronToddWhitepridesitselfonbeingindependentPropertyAdvisorsandourservicesaren'tlimitedto valuations Wealsohaveanin-houseQuantitySurveyorsteamandprovidetaxdepreciationschedules,insurance assessmentsandenergyefficiencyassessmentsbuttonameafewadditionalservices Iwouldparticularlydrawall readersattentiontoourtaxdepreciationserviceswhichareapplicabletoallfarmpurchasesandanyinvestmentproperty -flatsbuildings,leasedindustrialsheds,motelsetc Ataxdepreciationschedulecanprovidesignificantbenefitsanditis wellworthconfirmingwithyouraccountantthatyou'vehadanindependentreportproduced Arecentexampleofa grazingpropertywhichsoldforapproximately$9min2024provideda$3mtaxbenefitoverthecourseoftheschedule periodafterhavingaHerronToddWhitetaxdepreciationscheduleproduced,obviouslyasubstantialsaving.Seeour websitehtw.com.auforfurtherinformationandtorequestaquote.

Rural Properties For Sale

“Hillcrest”, MIDDLEMOUNT

9,547 55 Ha | 23,593 Ac (Freehold) AUCTION

11am, Thursday 21st November

"Heswyn", INGLESTONE

1,974.46 Ha | 4,878.99 Ac (Freehold)

EXPRESSIONS OF INTEREST

Closes Thursday, 17th October at 5pm

"Maylingup", WARRA 936.21 Ha | 2313.42 Ac FOR SALE By Negotiation

"Little Paradise", UPPER YARRAMAN

66 59 Ha | 164 54 Ac (Freehold)

EXPRESSIONS OF INTEREST

Closes Wednesday 30th October at 5pm

"Mountain View", KUMBIA

194.58 Ha | 480.81 Ac FOR SALE $2,400,000

"Koolara", PROSTON

350 63 Ha | 866 42 Ac FOR SALE

Offers Over $1,400,000

117 5 Hectares | 290 Acres (Freehold)

EXPRESSIONS ON INTEREST

Closes Tuesday 12th November

195 Connelly Road, LAMBELLS LAGOON

266 meg Licence | 50 Hectares

EXPRESSIONS OF INTEREST

350 Lambells Lagoon Road, LAMBELLS LAGOON

Irrigation Infrastructure | 8 Hectares FOR SALE $780,000

Balonne Steel & Rural, ST GEORGE

Turn Key Commercial Business with Excellent Location OFFERS ABOVE

$2,200,000 + SOH

Marano Laundry, ROMA

Blue Ribbon Investment In Queensland Mining Hub EXPRESSIONS OF INTEREST CLOSE WEDNESDAY 23RD OCTOBER

A Business with Resilience FOR SALE OFFERS OVER $690,000 + SAV

TheFinanceMix

Whenclientsapproachusforfinanceandaskwhatthebestoptionis,itallcomesdowntowhatthe“Purpose”ofthe fundingisfor.Inthisarticle,I’vesummarisedsomeofthekeydifferencesbetweenfinancingproductstoprovide insightintowhycertainproductsareselectedandthebenefittoyourbusinessifyoudoitright.

Purpose:BuyingProperty

ThebestformoffinanceforthisisaTermLoanThesewillalwaysbepricedonthemostcompetitiveinterestrateby theparticularinstitution Asthey’reconsideredalongtermfacility,thebankswillinvariablycompleteanassessment overalongrepaymentterm Instalmentscanbemadeonmonthly,quarterly,orhalfyearlyinstalmentstobestsuit yourcashflow

BusinessWorkingCapital&LivestockTrading

Forthesepurposes,abankwilloftenuseanOverdraftorLineofCreditfacilitylinkedtoatransactionaccount ThesefacilitiesarepricedhigherthanaTermLoanfortheconvenienceofhavingreadilyavailablecapitaltouse ThebankisalsorequiredbyAPRAtoholdmorecapitalagainstthesefacilities,whichcoststhebankmoreto providetocustomers

EquipmentFinance(otherwiseknownasAssetFinance)

UsedonlytobuyequipmentforbusinesspurposesPricedonafixedrateforthetermofthefacilityandsecuredby thegoodsonly InterestRateshavelesserbearingonrepaymentamountsgiventheshorttermnatureoftheloan (ie 5years)andrelativelysmallamountswhencomparedtoTermLoanswhenbuyingproperty Keyconsiderations areselectingthetermofrepayment,frequencyofrepaymentsandifyou’dbenefitfromhavingaballoonpaymentat theendoftheterm

IhaveaseenaresurgencebyclientsusingLeasingtofinanceequipmentratherthanastandardChattelMortgage TherearedifferingtaxbenefitstoaLeasebyclaimingdeductionsontherepaymentsratherthantheDepreciation underaChattelMortgage Beforedecidingonwhichproducttouse,alwayshaveatalktoyouraccountantfirst

Summary

Bystructuringthisfinancingmixtosuityourbusinesswillnotonlymakeyourbusinessmoreefficienttooperatebut alsosaveyousignificantcosts Understandingyourcashflowcycleandknowingthepeaksandtroughsinworking capitalwillhelpcreateastructurethatisbestfitforyou