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Karoo offers mixed farming opportunities
Producing some of the highest quality products in categories such as genuine free-range meat and organic fibres, the Karoo is home to an increasing number of speciality farms such as olive and berry, as well as irrigation farms generating a variety of produce. In addition, game farms are making a comeback after a price rectification period and, with investor-focus shifting to farms that provide an income, have income potential or have a suitable business plan.
"Added to the mix are urban professionals who seek to enter the farming sector as they perceive a farm as a sustainable or profitable investment with highly appealing lifestyle attributes," says Wayne Rubidge, manager of the Karoo region of Pam Golding Properties.
"One of the categories ripe for such diversification is extensive, quality Karoo livestock farm land. Besides the key criteria of good location, infrastructure and quality of water, an important consideration is the quality of the natural grazing available on a farm or in an identified area.
"Since 2010, activity in the marketplace has seen a number of good farms change hands - as have the few rare top farms that have come onto the market. Buyers are prepared to pay a sizeable premium for one of the Karoo's top farms as opposed to a high price for a good farm. Premium farms, whether for livestock or game farming, are in high demand and buyers are very specific in what they would regard as a premium farm in the Karoo."
Cattle, sheep farm opportunities
In the case of cattle farms, buyers are looking at well-grassed high rainfall areas such as those found in certain parts of the Eastern Cape and in the northeastern region of the Northern Cape. The carrying capacity should be below 1:12 LSU*/hectare and have the basic improvements which include watering points, handling facilities, roads and internal fencing.
Similarly, a good Karoo sheep farm should have a good mix of grass and bush and be priced around or below R7500/SSU**. Should the property have registered irrigation water from boreholes, dams or an irrigation scheme, then that would add to the premium as well as quality of infrastructure and improvements. Then there is the normal and highly desirable mixed Karoo farm which has a little of everything and which includes a good location, water, relatively easy access, a farmstead and farm yard, and various other aspects such as appealing scenery and topography, and game.
The company has three such opportunities; one cattle farm in Cradock, one well-watered sheep farm in Richmond and one sheep farm in Prince Albert.
*LSU = Large Stock Unit
**SSU = Small Stock Unit
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