A combination of rising beef and lamb prices, the return of rainy conditions, and forecasts of another bumper production year helped push prime farmland returns back into positive territory at the start of 2024, a key index shows.

The ANREV Australia Farmland Index shows, which tracks the performance of a $2 billion-plus portfolio of prime agricultural assets managed by leading fund managers, generated a 2 per cent income return and flat capital growth for annual farmland over the December 2023 quarter.