Posted by on
05/12/2024
Rabobank’s Ian Donaldson
Western Australian farmland values have experienced incredible growth in recent years, and keeping abreast of this dynamic space is all in a day’s work for Rabobank's Ian Donaldson.
Supporting farm growth through independent property market analysis
Albany-based Ian is part of Rabobank’s wider valuations team, which collates independent, internal farmland data across Australia and New Zealand.
The team is responsible for all of Rabobank’s internal collateral valuations and plays a key role in supporting rural managers with up-to-date market knowledge.
With over 21 years of Rabobank experience, first as a rural manager in Bunbury, then Albany, Ian helped launch the valuations team in 2015, and believes the team is a unique and valuable addition to Rabobank’s rural expertise.
“As a bank dedicated to agricultural clients, our team benefits enormously by being close to the market – our boots are on the ground at the farmer level, yet we have access to a large pool of knowledge thanks to our national and global network.”
Rabobank benefits from leveraging leading-edge technology, including geospatial mapping developed specifically to provide sales analysis and internal value assessment, with specialised insights and data at an individual farm level.
Ian with members of Northern Agri Group at their Annual Spring Field Day
“From the accuracy of data available today – including rainfall averages, soil types, recent sales – our team can be confident we’re conducting enhanced market analysis using timely data to gather the most accurate information in the market.”
The team's location across regional Western Australia fosters a strong rapport with Rabobank’s network of local rural managers, ensuring first-hand conversations and relevant insights.
“A large part of our role is to work closely with Rabobank’s rural managers so they can be better equipped to support their clients in making informed decisions on the growth strategies – using accurate and timely knowledge and data.”
Recently, the Australian Collateral Risk Team welcomed Troy Pettersson, based out of our Bunbury branch.
“Troy has enjoyed a career as a licensed rural valuer working across Western Australia, and Troy’s background and experience will continue to strengthen the team.”
Troy Pettersson has recently joined the team
“Our close relationship with rural managers and their deep knowledge of the region, coupled with our access to exclusive technology, gives our clients an enviable understanding of the farm property market, and it’s an exciting aspect of ag to be working in.”
Western Australian farmland values continue to rise
The current selling season may be indicative of the Western Australian market, and with the northern region rebounding after a challenging 2023 season, Ian believes the appetite to buy land remains strong.
“There seem to be more properties on the market than there have been for some time, so the supply and demand story will play out. However, I don’t think we’ll see a reduction in land values; rather, we may see a growth softening.”
“While the cost of production, interest rates and the sheer scale of some properties may soften the market, growth is expected to continue, our farmland still represents good value per hectare.”
The region’s land values have skyrocketed in recent years, and Ian admits to being surprised at some sale prices.
Regardless, he believes the market is strong enough to support continued growth.
“Whilst the numbers are large, there seem to be enough businesses with the scale to support where the market is going, with many in this category being family farmers - not necessarily corporates.”
However, he believes potential purchases will be highly considered.
“I suspect some farmers will also look to other regions if they feel their patch is overvalued, and people will look for opportunities on a tonnes per hectare basis over rainfall if it’s the best-added value for their business.”
“Alternatively, our Western Australian land is of interest from out-of-state buyers, which reflects where our land values sit compared to the rest of Australia.”