Farm sales in the fertile Tzaneen area have picked up considerably in the past two years and prices have shown average annual increases of up to 15 percent.

Hannes Theunissen, agricultural expert at the Aida Tzaneen office, says the market has turned around since the time when uncertainty around land redistribution was depressing sales. "Two years ago farmers who sold their land here tended to move to other agricultural areas, such as the Cape. Now they are coming back and looking for farms," he says.

"And they are bringing with them their expertise in subtropical fruit and vegetable production, which bodes well for the stability of the local agricultural sector. Many of these experienced farmers are also gearing up to act as mentors for new farmers settling on redistributed land."

Aida CEO Jan Davel says the fact that the Department of Land Affairs is also buying farms on the open market is a further stimulus. "One drawback of the buoyancy of this market, though, is that it is attracting many new agents without the necessary experience and expertise to advise buyers in the intricacies of a highly specialised sector."

Theunissen says high macadamia nut prices have boosted prices of farms in the area with established orchards and that prices of up to R75 000/ha are being realised. Farms under avocado trees sell at an average of R45 000 to R50 000/ha, while farms under mango sell at around R35 000/ha.

Many farmers, especially in the Trichardtsdal area, are converting to vegetable production, often growing crops under contract to distributors, and Theunissen says higher profitability has seen local vegetable production increase by about 30 percent in the last year.

Prices of game farms have also increased in the past year thanks to higher profitability. "Prices have jumped from an average R4500/ha a year ago to around R7000/ha. This follows large-scale amalgamation of smaller game reserves and higher prices of game sold on auction."

Aida Tzaneen specialises in farm sales within a 65km radius of the town.

For more information contact 015 307 3680.

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