Important Elements to Consider When Buying or Expanding a Farm

Once you’ve assessed the basics of a farm block – water, soil, vegetation, and infrastructure – there’s a second layer of important considerations that can make or break your farming enterprise. These are the factors that are often overlooked by first-time buyers but are well understood by experienced farmers.

Upfront Farming Costs

There’s always a way to source the resources, machinery, and equipment needed to start or expand a farm, and Australian farmers are famously innovative and resourceful when it comes to making it work. Some farmers buy a block and lease it out for a couple of years while they save additional capital. Others start by working for farming businesses or leasing land and share farming with other farmers, building both their skills and their finances at the same time.

Many farmers purchase second-hand equipment and machinery through clearing sales or online platforms, or build their own farm infrastructure where they can. Some rent machinery and equipment until they have enough capital to buy their own. The key point is that upfront costs need to be carefully thought through and planned for, but they’re rarely a reason not to pursue farming.

Other Infrastructure and Potential Developments in the Area

Mobile phone and internet coverage in some rural areas can be insufficient and may require the purchase of signal boosters. It’s also worth researching any potential or approved developments in the area you’re looking to buy,  knowing what’s planned for surrounding land can in some cases save significant future headaches.

Farm Maintenance Requirements and Labour

Every farm, regardless of size, requires ongoing labour input for maintenance and upkeep, in addition to the labour required to generate income. Even a small five-acre hobby farm has regular maintenance demands. Annual farm maintenance requirements typically include:

• Ensuring perimeter firebreaks are established before the summer fire season
• Maintaining and repairing fences
• Maintaining farm driveways and roads
• Managing weeds over the winter months
• Maintaining dwellings, sheds, and water infrastructure

These requirements can always be managed, it’s simply a matter of factoring them in before you buy or expand. Whether you do the work yourself, with a partner, or by paying contractors, planning for maintenance ensures small problems don’t become large, expensive ones. For anyone running stock, providing clean water and feed on weekends and at other times also needs to be factored into your schedule.

Power

Power is a significant consideration, particularly if you’re planning to reside on a farm or undertake on-site processing of produce. If power isn’t already connected to a farm block, the cost of establishing suitable power, whether single phase or three phase, can be a critical factor. Stand-alone photovoltaic (solar) panel and battery systems with diesel generator backup are increasingly popular and effective, and can offer the advantage of eliminating reliance on the grid entirely.

The Best Advice Comes From Local Farmers

As in any industry, the best advice comes from people with experience on the ground. Farmers are generous people and good networkers who are genuinely happy to help someone newer to the area or the industry. Being part of a farming community is one of the great rewards of the lifestyle, and many farmers have benefited from practical tips and referrals generously passed on by their neighbours and peers.