Farms reach a high before sale
THE Sustainable Agriculture Fund has produced an 18.7 per cent return on investment, its highest yet and more than double its previous best result.
The 17-farm aggregation of cropping, beef and dairy properties in Victoria, NSW and Tasmania is owned by a conglomerate of superannuation funds but is being sold after 10 years of operation.
SAF is run by managemnt company AgCap. Its chief executive Martin Newnham said SAF produced a net farm profit of $9.8 million in 2016-2017, up from $8.8 million the previous year.
Mr Newnham said the 2016-2017 return on investment was evenly split between the farm operating result and capital gain.
He said SAF’s beef operations on King Island and two Victorian cropping properties were the main contributors.
Mr Newnham said it was also pleasing to see a return to profitability from SAF’s four dairy farms in Tasmania.
Bids for SAF farms are being assessed. An announcement is expected next week.