DBF 5.23% $1.36 duxton farms ltd

From the link that you posted goochEslake said that the data...

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  1. 893 Posts.
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    From the link that you posted gooch

    Eslake said that the data from Abares showed that on average over the three years to 2019-20, the top 20% of farms earned an average return of or above 6% per annum, but the bottom 30% of farms had negative rates of return on capital.

    So there is money to be made in farming, but you have to be either very lucky or very smart...or even better both

    But still very low ROI's in general for the average farmer with average luck or worse still if your average and unlucky...
    but of of these 3 years (I only count 2 years in 2019-20) there was part of a pretty severe drought thrown in to muddy things

    So in many ways just like property investors, capital growth is what most investors/farmers are now banking on, you
    would not take the risk just for the rent return of 2-3% just like farming, without the multiples of this return as capital growth,
    but as we all know capital growth is not always a given, so when the music stops and rates rise a few percent, what then?




    and just to prove that I am not all negative...a positve story for those that havnt seen this from a while back


    https://www.theland.com.au/story/5466001/the-history-of-a-true-lachlan-jewel/



    I think that buying DBF at present is a bit of a gamble on whether or not Wyangala dam is increased or not IMO,
    without it global warming will cause a lot of headaches for those of us downstream as well as the towns along the
    way, even a compromise of say 20% capacity increase would catch most floods like the one we have just had
    or if not maybe buyback 20% of the water entitlements from irrigators and aim to keep the dam at say 85% level

    You cant try to keep it full for irrigators when its catchment area is so large and big rain events are getting more
    common and unpredictable or at least it seems that way, flood mitigation and reduction is an equally important or
    maybe even more important role for wyangala I would think, I kept a pretty close eye on this years flood event
    and whom ever was in charge of discharges from wyangala did a near perfect job, if we had of got a bit more
    rain in the wyangala catchment or in the belubula river catchment or worse in forbes then this year flood event
    would have been a magnitude or two greater than what it was....a bullet was dodged by many because of the
    way the dam was managed....and luck....next time both may things may not be so kind

    cheers grant
 
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