‘Cash-rich buyers’ dominate latest Aussie farmland deals
Corporate giants and family offices with deep pockets are dominating Australia's farmland purchases, while credit-squeezed mid-tier buyers struggle to compete.
Corporate buyers of Aussie farmland are taking advantage of a cautious market with capital-rich buyers best placed at the top end of the market this year.
In the first edition of LAWD’s Land and Living report, the demand for cropping farmland was described as “softer” while the market was showing strong interest for grazing and irrigated farmland.
“Transaction activity remains subdued due to tight credit conditions and cautious lending, however, we are now starting to see activity increase in the second half of the year of 2025 on the back of stronger commodity prices, interest rate reductions and favourable seasonal conditions in certain regions,” the report said.
“Institutional and family office buyers with strong liquidity are expected to dominate transactions.
“Many 2025 buyers, such as Hughes Pastoral, Gunn Agri, Camm Ag, Alkira Farms, McLean Farms and S. Kidman and Co. are family offices or institutional operators with significant capital reserves.
“Tight credit conditions have made it harder for mid-tier buyers, reinforcing the dominance of cash-rich players.”
Recent activity of note referenced in the report include Meldora’s acquisition of the Arcturus Downs aggregation as part of a $120m deal, Redrock Cattle Company’s $47.8m purchase of the Mt Harden Aggregation and Bega’s sale of its Peanut Company of Australia assets Crumpton Group.
“The Arcturus Downs transaction- being one of the largest rural deals of 2025, reaffirms the perception of farmland as a long-term, inflation-resilient asset class,” the report said.
“Institutional players, like Gunn Agri, Hughes Pastoral and Hancock/2GR, dominate acquisitions, together accounting for the bulk of disclosed deal value.
“This selective targeting of scale and quality confirms that capital is flowing into fewer, but higher-quality opportunities.”
Other significant deals so far this year included the $70m deal for Wirribilla at Walcha, in northern NSW, bought by Gina Rinehart’s S. Kidman and Co, plus the $75m sale of the nearby McPhee Beef Farms via New Forests’ Australia New Zealand Landscapes and Forestry Fund.
“The outlook for the next 12-18 months is modestly positive, with activity expected to lift once interest rates stabilise and inflation pressure eases,” the report said.
“’Deal-ready’ businesses with clean governance and strong sustainability profiles are likely to command premium interest.
“More hybrid deal structures- mixing equity, deferred payments and joint ventures- are anticipated, especially in land and water-intensive sectors.”
