Lessons from recent Real Estate Rural Network conference

I attended the REIWA rural network gathering last Friday and was pleasantly surprised by what I managed to pick up. I thought I'd jot down some prompts to recall some of the outcomes for future research:

1. Small Landholders (by definition 1 to 100 ha) by Dept of Ag, Neil Guise.

• Neil shared interesting research on small landholders, which by the way is no small group - some 60,000 in WA (versus 6,000 commercial farmers). Apparently 95% of the small landholders are there for lifestyle reasons (no surprise) and 80% would like the farm to be viable but here's the catch within time constraints. I totally understand that - I explored a number of options with our farm but to be honest, despite my marketing knowledge all roads kept coming up against hard manual labor, which to be honest I'm just not built for that. But I haven't given up - lets face it, these are the dreams that keep it exciting as you look across a few acres and wonder what could be. I did come away inspired to plant lime trees - maybe one day.
• He shared information about the foodlink program which is of course very commendable and a great start to helping niche players find a market. At this years show they showcased 8 WA niche success stories; from bananas to honey all very positive. I particularly liked the local Gingin success story Fruity Fanatics, frozen fresh fruit - having great success with school canteens as a new healthy choice. I wish I thought of that one.

2. Food security presentation by Stuart Clarke from Ag Dept.

• Stuart provided some great insights into how to have a win against the power of the supermarkets and the sobering facts of food inequality across the globe.
• He had these 3 words of advice for farmers: 
• Create
• Capture
• Defend value

3. Juliet Grist from Rural Financial Counselling Service WA

• Juliet provided a very impressive presentation on the role of the service in helping farmers in need. She warned of a tough year ahead and the need to be ever so professional and honest when dealing with farmers when dealing with the stress of poor harvest and financial frustrations. 
• Key lessons included;
• understanding the holding cost of property
• retirement & handover issues (no one wants their kids to take-over and the importance of off farm activities & skills
• the importance of professional marketing plans (banks will step in if they can do a better job of marketing the property)
• she pleaded with real estate agents to provide meaningful appraisals as it often takes months to undo unrealistic expectations. She stressed it shouldn't be about winning the sale but managing expectation.
• possibility of chemical fallow which is proven to increase the value of future harvests
• "homesteading" - potential for farmer to keep 200 acres if emotional attachments
• She shared her 4 point plan; 
• Calm the situation - listen, empathise
• Provide clarity - some people can't see the wood for the "tree" in front of them.
• Back up plan
• Awareness of personal factors - for e.g. maybe they don't want to farm anymore.
• Focus on de-personalising the plan - giving them control, providing regular updates - keeping them constantly informed.
• Mental health awareness - above all Juliet shared the importance of understanding your clients mental position as well as farm position and don't leave it until it is too late to refer to the Financial counselling service. Which reminds me I must connect Global Mindscreen with this service.

4. Disclosure and prudence:

• Update from landgate on "land interest" enquiry database. All very positive and hopefully they will spend some time with REIWA to ensure they are integrating these new tools into the way we currently prepare disclosures etc. 
• Afternoon finished with a legal presentation on the importance of prudence when selling property with no mortgage given recent case in City Beach of stolen title. I think they have made the right decision that the title is always upheld, otherwise it would be mayhem but yes definitely worth staying alert for such circumstances.  I imagine higher risk in lifestyle properties where people may hold title and are not always living there. Certainly is a good case to keep a mortgage - even if only small to avoid the risk of your lawyer stealing your title:)