Farms reach a high be­fore sale

Tasmanian Country - - THE STOCK RE­PORT -

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.

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