Central Queensland cane farms selling fast due to high sugar prices: HTW

There was a relatively large number of cane farm sales in 2016 at central Queensland due to improved market sentiment caused by higher sugar prices, according to a Herron Todd White’s recent report.

The property valuation firm says that values remained generally firm.

Prospects for value growth through 2017 appeared likely up until milling reliability prevented the 2016-17 crop from being fully harvested.

It has been reported that approximately $20 million of crop has been left to stand over after one of the longest crushing seasons in history.

Growers who had hoped to expand in 2017 will now be reconsidering because of lower returns from the 2016–17 crop and expected lower yields from the 2017–18 crop due to follow on effects from the most recent crushing season.

Milling reliability is a now a major concern to cane farmers and will be a critical issue to farm values in the years ahead.