Purchasing Land You Already Lease

As we have been driving around South Australia lately, one thing has been hard to miss. There are plenty of for sale signs going up.

A lot of land is on the move, and it will be interesting to see where prices settle as the spring selling season continues. With interest rates also in the spotlight, there’s plenty to weigh up for those looking to expand.

But even if buying isn’t on your radar, recent interest rate rises make it worth checking what you’re paying on your existing lending. We’ve recently helped clients reduce their interest rates by an average of over 1% simply by reviewing their banking. While we unfortunately can’t control the RBA’s decisions, we can help you find the best rate available to you and ease some of that pressure.

At the end of this month we are heading to the South East on 21st to the 22nd of October. If you are in the area and would like to catch up, give us a call. There is no obligation or cost.

Out and About – What We’ve Been Up To Last Month
It has been another varied month for us, with plenty happening both on and off farm. We have had a few client visits here and there, running through purchase scenarios, meeting new bank managers and doing general check ins wherever we can.

Hart Field Days

This year we set up our stand at the Hart Field Site and had a great day catching up with plenty of new and familiar faces.
It was also a good opportunity to hear directly from farmers and industry professionals about how they are feeling about the season.

The crops were looking fantastic. Deb nearly got lost in the beans they were so tall!

Thank you to everyone who stopped for a chat. We always enjoy getting out of the office and hearing what is happening on farm.

MFAA Women In Finance

Last month we had the opportunity to attend an MFAA Women in Finance event. The session focused on navigating difficult client situations and recognising when someone may need support beyond what we can provide in our professional role.

Farming and finance can both come with their fair share of pressure, and sometimes there is more going on behind the numbers.

We always want to support our clients where we can, but we also know when it is time to bring in someone with the right expertise. Sometimes the best way we can help is simply by listening and pointing you towards the right person or service.
If you ever need additional support and are not sure where to start, you are always welcome to ask us. We may be able to point you in the right direction.

This Months Blog: Should I buy the land I’m currently leasing?

Doing the numbers on any land purchase can be challenging. When land you are already leasing comes up for sale, there can be even more to consider.

You are already farming the land and receiving the production benefit. Buying it may mean taking on significantly more debt without necessarily adding more income to the business.

Instead of paying rent, you now have the costs that come with ownership. That can include interest, principal repayments, rates, insurance and other expenses.
But that does not mean purchasing is the wrong decision.

Ownership can provide long term security, build equity and become an important part of succession planning. For businesses that rely heavily on leased land for scale and profitability, securing an important property can also reduce future uncertainty.

The challenge is working out whether the business can comfortably carry the purchase through both good seasons and difficult ones.
Our blog looks at some of the questions worth considering before making that decision.

It is also a useful read if your business relies heavily on leased land and you want to be prepared in case an important property unexpectedly comes onto the market.

Click Here To Read: The Rise of Input Costs: Purchasing Land You Already Lease

Whats Happening With Interest Rates?

The RBA met yesterday and increased the cash rate by another 0.25 percentage points, taking it from 4.35% to 4.60%. The big 4 currently predict the following:

• CBA predicts rates to hold at 4.60% for now, although another increase remains a risk if inflation comes in stronger than expected.
• Westpac expects the cash rate to remain at 4.60% for now, with no further increase currently forecast.
• NAB expects rates to hold at 4.60% for now, but has flagged the possibility of another increase if inflation and economic activity remain stronger than expected.
• ANZ is forecasting another rise by 0.25% in November.

With rates on the rise, it’s worth checking whether your current lending is still competitive. A quick review could help identify savings and ease some of the pressure from higher borrowing costs.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” — Warren Buffett
Have a great day!!
Deb & Laura

Latest News

Yorke Peninsula Rural Women’s Day
18 October 2026
An afternoon at The Stables at Halcyon bringing rural women together for connection, conversation and activities, with Catherine Marriott OAM among the speakers.

Hart Spring Twilight Walk
20 October 2026
The Hart Spring Twilight Walk is another opportunity to get out into the trial site and see how crops and trials have progressed through the season.
It is a good chance for growers to see current research in the paddock, catch up with others and hear what is being observed across the season.

Resilient Soil and Crops Field Day, Conmurra
22 October 2026
For those in the South East, the Resilient Soil and Crops Field Day at Conmurra will share current research and trial findings around crop and soil resilience.
It could be particularly useful for growers interested in practical ideas they can take back to their own farming systems.

ABARES September Crop Report
Australia’s winter crop outlook is looking positive overall, although conditions vary across the country and there are still some seasonal risks ahead. South Australia is a particular bright spot, with ABARES forecasting winter crop production of 11.3 million tonnes, potentially the state’s second highest on record. Good soil moisture and favourable winter conditions have supported strong yield prospects across much of SA, while nationally growers will still be watching spring rainfall, temperatures and frost risk closely. Overall, there is good reason for optimism heading towards harvest, but as always, there is still some way to go before the crop is safely in the bin.

From the Purvis AgriFinance Archives

The Hidden Cost of Delaying Financial Decisions
Spring land sales can move quickly, and waiting until the right property appears before thinking about finance can leave you with fewer options. This article looks at why having your financials up to date, understanding your borrowing capacity and knowing what lenders may support can put you in a stronger position when an opportunity comes along.

Five Financial Decisions Every Farming Business Should Review Each Year
Taking on more land is not just a question of whether the bank will lend you the money. It is worth stepping back and looking at your overall financial position first. This article covers borrowing capacity, working capital, finance structure and longer term business goals, all important considerations before adding more debt to the business.

The Bank Manager Revolving Door
Bank managers come and go, but your business still needs consistent support. When a manager changes, you can find yourself explaining your farm, financial history and future plans all over again. This article looks at why it is always worth building depth into your banking relationships, keeping your loan structure under review and having someone who knows your business well. That way, when your bank manager changes, you are not starting completely from scratch.