Originally posted by pete11
Enough with the jokes now a serious question, but in a game sort of way, out of the following agricultural fields below, which one do you think RFF will buy into OUTSIDE of the areas its in now next to diversify even more.
1.) BEES (yes Im serious rff could buy some bee farms and make honey)
2.) Sheep station (for meat and wool)
3.)Piggery
4.)a fish farm
5.) Avocado farm
6.) strawberry farm and or CHERRY farm (after the needle scare some might be for sale on the cheap)
7.) Apple orchard
8.) Citrus orchard (orange/lemon/lime etc...)
9.) Vegetable farms (broccoli/potato/carrots/cabbage etc..)
and another question.
Someone here said RFF technically is not a food producer but an REIT, fair enough, lets say
the price of BEEF fell 50% and we own lots of cattle stations, would RFF get the exact same RENT from the cattle
ranchers on its properties or would they have to cut the rent eventually if beef prices remained low?
Or say there was a GLUT of wine, would the rent we get from our winery operators stay the same or would it eventually fall?
cheers.
Ok so a few things. I come from an AG background (work on a farm now) and a honey farm isn't as easy as buying bees. You need pollination for the bees to create that honey, then there are different climates, different pollinates for the bees to produce different "flavours" of honey. I think this might be a little too hard unless you know what you are doing.
I vote for sheep farm. Plenty of country in rural SA and WA that I have visited and my brother has worked on that could be bought. Would cost a bit but there is always money in meat.
As far as price of beef. I would seriously put my house on it never going down in the near future. Price of grain is at an almost all time high = cost to feed animals at all time high. The only way beef will go down in price is if there was a mass overproduction and oversupply of beef. Look at last year... drought. Nope. Not happening at least for 5-10 years. Remember gestation of a calf is almost 3/4 of a year. I don't know about you but I saw a lot of images of cows being shot from farmers not being able to feed them hay/grain. I just don't see how there will be an excess of meat available anytime in the near future. You can basically count on one heifer having one calf a year. It's not particularly high rate of turn over. That's why beef is so expensive. (Woolies increased basic 20% fat beef mince from $7 to $8 recently).
Where as a lamb can be turned into meat as soon as 100 days after being born (usually more - under 365 days) and gestational period is around 150 days.
Meat + wool. Large amount of land in rural SA or WA is our next purchase and therefore, Lamb is our next purchase. Wool at an almost all time high.
Sorry for long post. Hope it helps anyone wanting to know more. I'm 4th gen farmer/hay producer.
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