THE lack of profitability in the grains industry is being blamed for an increase in farm sales.
An eastern Wheatbelt farmer who wished to remain anonymous and has just put his farm on the market, said while it was emotionally difficult to put the property up for sale, the final decision came relatively easily.
"There is just no profitability in grain, there is no margin," he said.
"We've spent the last 25 years trying to use an efficiency curve to outrun the cost structure but you only need a slight miss and everything becomes a margin game.
"The big question is, what can we do about it?"
The farmer said most people did not realise how broadly-based the problem was, with farmers struggling to make ends meet regardless of their location.
"I've spoken to farmers at Walkaway and Geraldton who lost $2 million last year and $2 million the year before," he said.
"We've been waiting for this for a long time and although there is an emotional spark, I think you're a mug if you don't realise the situation.
"There is no point wallowing.
"At current grain prices the more we grow, the more we lose because with the amount we have to spend, there is just nothing left in it.
Elders rural real estate manager Malcolm French said farm listings had increased everywhere except the Northern Wheatbelt, with listings up by 10-20 per cent across the board.
Mr French said it was the result of a combination of factors, such as commodity prices and staffing issues.
"People are still finding it difficult to get staff and competing with the mining industry, that should never be understated," Mr French said.
"Credit is also slowing people right down.
"It's everywhere, other than the Northern Wheatbelt, the trend has been replicated everywhere by at least 10-20pc."
The amount of interest in farms on the market had also decreased, which Mr French said was not unusual given the circumstances.
"But there are operators who see this as a good time to buy," he said.
"There is activity going on and we'll shortly be announcing some big sales."
Land prices had also taken a hit, while some had managed to maintain their level, Mr French said.
"Prices are under pressure, it's levelling out and I think people are accepting that," he said.
"It's a pretty serious challenge but we'll get through.
"We've still got listings coming on, but we're still doing the deals."
Landmark state rural property manager Glenn McTaggart said there had been an increase in farm listings, but he would not describe it as a "blow out".
Mr McTaggart put the increase down to the fact that the traditional spring selling season had shifted to this time of year.
"January through to April is now the busiest time and that's due to a number of reasons," Mr McTaggart said.
"Firstly I think buyers want to see the results of the previous year before committing to any land sales and secondly people are making those selling decisions after they come back from their holiday period."
While it may appear that there is a higher number of farms on the market, Mr McTaggart said it was more a case of a backlog of properties that had been on the market for a number of years.
"Deals are harder to put together these days, but a lot of the time sellers' expectations are higher than the realty of the market," he said.
"Medium to higher rainfall areas are holding their values pretty well but there has been a slight correction in the lower rainfall areas.
"But its peoples' expectations more than anything."
Corporate interest was something that both agents agreed had increased, especially in large-scale holdings and neighbouring properties.
Leases had also been on the rise.
Mr French and Mr McTaggart both said they believed the corporate trend would continue.
"The corporate interest is certainly there," Mr McTaggart said.
"We've also seen an increase in lease listings and leasing values are holding firm."
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