NAB Regional & Agribusiness Horizons Report for 2025 released

A new report has revealed that regional Australians are more positive about the future, while regional property valuation growth is easily outstripping dwellings in the city.

Regional Australians are more optimistic about the future compared to their metropolitan counterparts, while regional property valuations are easily outstripping those in capital cities, a new report has revealed.

NAB’s new Regional & Agribusiness Horizons Report for 2025, released on Wednesday, found that one in four regional Australians think things will improve, compared to one in five people living in capital cities.

“It’s been another year of ag that’s been vastly different, but … the resilience of Australian farmers is unbelievable,” NAB executive for regional and agribusiness Khan Horne said.

Australian agriculture is on track to reach its $100bn goal by 2030, with ABARES predicting a $91bn production value for 2025-26.

NAB executive for regional and agribusiness.

While this would be slightly down on 2024-25, it would still be the third-highest value recorded for the industry.

“I personally love hearing those aspirational targets (the $100bn target by 2030). What it highlights is the importance of exports to an array of countries, not just being tied up to a single party,” Mr Horne said.

“What needs to happen (to reach $100bn) is evidently a run of good seasons, and a reasonable dollar for exporters. What’s also happening very rapidly is just simple innovation. New varieties, better genetics, better laneways … there’s a lot of productivity happening.”

In terms of the impact of recent tariffs, Mr Horne said it’s vital for farmers to really understand their own industry, and that it’s healthy for all Australian exports to have the option of three or four markets.

“Make sure we’re taking advantage of the trade agreement with the UK. Making sure you are in Europe. You can’t forget the wonderful nations of trade within southeast Asia,” he said.

NAB expects to see a continuation of 2024’s trend of foreign corporates and institutional investors active in the property market, but Mr Horne thinks the “family farm will reign supreme for many decades”.

“It’s very hard to compare Australian valuations per se, but it doesn’t matter if it’s a single operator, a couple or family, I think they’re just as active, personally, in the market as any ASX-listed or any other form of investor,” he said.

“Of course, when you start to talk about $100m-plus (properties), it takes out quite a number of individuals and families, but I’m never surprised that operations of larger families continue to grow as much as anyone else.”

Regional property values saw a 5.3 per cent increase, easily outstripping the 2.6 per cent increase for metropolitan areas, reflecting ongoing internal migration, and perceived lifestyle benefits of moving to the regions.

“Unemployment has maintained at the range between 3.9 to 4.1 per cent for 17 months. There doesn’t seem to be rising unemployment anywhere. There’s jobs, you just might have to move for them,” Mr Horne said.

“Of course, I look at areas where the actual entry price to a house in some of our regional areas is far more affordable for young people than inner Melbourne, Sydney or Brisbane”.