Why was Australian Station Management Formed?

ASM has recognised that changes are occurring in the rural industry, in particular the ownership and management of rural land.

Australian Station Management (ASM) commenced in 2004 to meet this growing demand for a simple solution for rural land management and livestock marketing. ASM allows the investor in rural enterprises to have peace of mind in the knowledge that their interests will be served by professional, practical hands on managers who WILL WORK FOR THEM

ASM provides the following investors with its services:

• Those who have had a historical connection to the rural industry however have left to source income from other areas and now are in a financial position to purchase a rural enterprise
  
  
• Individuals or groups looking to diversify existing investment portfolios however may not have the required time or skills in managing rural property
  
  
• Existing operations experiencing succession planning issues
  
  
• Existing operations requiring assistance with all or individual aspects of their business due to change in circumstances

New Investments.

Historical information shows a trend of poorly performing rural operations being sold, taking advantage of the high land values. These enterprises are being purchased by the next generation of rural operators that have the ability to improve the rates of return. These increased returns are being achieved through larger holdings, marketing expertise and closer financial control. The two main groups purchasing properties are existing land owners and absentee owners.

The dilemma facing absentee owners is one of management. To ensure that the property is achieving sustainable rates of return these new enterprise must have access to the critical areas of marketing expertise, financial control and economies of scale.

ASM allows investors to diversify their investment portfolio and fulfil a lifelong dream to own a rural enterprise by providing them with a management structure to ensure solid returns are achieved. We provide services to investors, not only in Australia but also all over the world who simply want to own an Australian rural property and have it managed professionally and profitably.

Existing Investments.

It has become self evident over the last ten years in Australian Agriculture that the decline in the number of rural knowledge based workers and mangers is accelerating at a rate that sees many major landholders experiencing difficulties in finding managers to profitably run their enterprises.

Through the eighties and nineties, the recognition of Australia's agricultural shrinking skills base was evident and many attempts to attract young staff into rural vocational programs were undertaken. At that time the existing workforce of managers were young enough to keep going until new recruits were found. This has simply not happened quickly enough and there is currently a real crisis in the making.

Put simply the younger generation who left the farm in the early eighties have found new lives for themselves. In many cases rural enterprises have been forced into a partnership between the younger generations, who are employed off-farm, working with their ageing parents.

Queensland agricultural farmers increased between 1996 and 2001. In that period, the percentage of farmers in the 65 years and over age group increased from 11.8% (4333) of the total to 14.7% (5328) and those from 55-64 years increased from 21.4% (7869) to 24.3% (8821). Percentage declines occurred in all the other age groups with the largest being in the 25-34 age groups.

Existing rural enterprises have grown with the purchase of additional land to achieve economies of scale. This has result in smaller operations transforming into large holdings. These larger holdings present a number of issues that have not been faced previously by the operators such as large turnover of stock, staff and cash. This results in a high level of time pressure on the principles of the operation.

To assist in maximising the economies of scale ASM can tailor a management service assisting in specific roles such as marketing stock or financial monitoring. The ASM process is to work with those who have been in the enterprise for a long time and other shareholders to ensure that their input is valued, and forms part of the new management plan and strategic vision.

"ASM has been formed as a result of the changing landscape of the rural industry. ASM believes in a strong future for the industry however has recognised that alternative management strategies are required. We are here to provide these alternatives" C.Lehman, Director ASM

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