Rural values keep climbing, page-8

As well as the underpinning provided by high security water entitlements for RFF tenants' commodity production, another way to settle one's mind regarding their stability and profitability in this drought is to check the QLD, NSW, VIC, SA drought affected area maps issued by the States each month. Compare the maps to the RFF tenants' property locations.
For cattle breeding the tropical land holdings are all outside the current seriously affected QLD drought areas and RFF tenant planted commodity assets as stated have major water entitlements. The corollary is that drought protected producers will reap higher margins. We all witness the vagaries of share price movement with sentiment and anecdote which seems currently to be following the assessment that drought is bad for rural production. However, IMHO in the case of the experienced drought protected RFF tenants that seems set to work in their favour.