Australian Farm Journal’s latest “Who owns the farm” report shows even agriculture’s biggest players are not immune from the latest cost pressures.

But selling up may not be the best bet for farmers facing mount debts and decreased cash flow.

NSW consultants Holmes Sackett suggest that a farmer whose annual interest bill is wiping out all his profits should not necessarily sell up but instead sell the livestock and plant to liquidate debt and then lease the property.

"That way the farmer continues to reap capital gain from the land as well as deriving a lease income plus whatever off-farm income he or she might now generate."

For those who decide to sell, neighbouring farmers seeking expansion opportunities, corporations chasing earnings from the soft commodities boom and investment entrepreneurs focused on capital growth are all likely buyers if the property meets their stringent requirements and especially if the purchaser can replace debt with equity.

Investment manager and Grass Farms Australia director Geoff Daniel champions the message that "bigger is better" in terms of both farm size and management.

His business operates about 20 livestock and cropping farms, mostly in NSW, under lease hold agreements.

"Farm size is too small to capture economies of scale," Mr Daniel said, noting that national farm debt had risen from about $20 billion to $40 billion in the past few years.

"One way or another, farms need to be re-aggregated. First-class farm and business management skills are scarce, and where they exist they are under-utilised because of small farms," Mr Daniel said.

Strong demand for properties with the right credentials is reflected in the purchases by investment companies Prime Ag and Australian Farm Investments during the past 12 months.

These companies have already purchased a swag of properties and have tens of millions in reserves to buy more.

However, their funds are like pocket money compared with what State and federal governments have available to buy land. An estimated $17 billion dollars is in kitty for property and water purchases.

An unspecified amount of government money is also being used in conjunction with NGO environmental organisations to purchase or covenant properties for threatened species preservation.