Revealed: Aussie farm prices triple in a decade

The nation’s median price per hectare has soared to more than $9500 as $14.5 billion worth of farmland was traded last year.

Farmland values in Victoria and across the majority of Australia have defied declining commodity prices and less favourable seasonal conditions to record another year of increasing prices.

The national median price per hectare increased by 6.4 per cent last year to $9575, capping off a decade which has seen national farmland values triple, rising by 201 per cent and at a compounded annual growth rate of 11.6 per cent since 2014.

Last year farmland transactions equated to a total of 6 million hectares of land at a combined value of $14.5 billion, and size similar to the US state of West Virginia, the Rural Bank Farmland Values report 2024 found.

Rural Bank head of agribusiness development Andrew Smith said a very short supply of farmland for sale last year increased the value of rural property which was transacted.

“While rural property remained very much in demand, record low supply helped push farmland values to new record highs in 2023 with many regions experiencing exceptional growth in values,” he said.

Farmland in Victoria remained the nation’s second most valuable at a median price per hectare of $15,000, behind Tasmania’s $20,320, rising by 5.2 per cent, a figure significantly subdued from the 34.7 per cent recorded last year.

“The value of farmland in Victoria continued to grow in 2023, which was a result of strong demand from buyers looking to expand established properties,” Rural Bank Victoria’s Wayne Saunders said.

“The state saw the continued trend of sales of smaller parcels with buyers willing to pay more to get prime farmland.”

Across the border, the median price per hectare in the Riverina Murray region reached $8746 following 22.9 per cent growth.

Nationally, there were mixed returns, although each state recorded growth in their median price per hectare, led by a 32.6 per cent increase in WA to $6225 a hectare, while in NSW there was a 15.8 per cent increase to $8824 a hectare.

Last year Australia’s median price per hectare of farmland reached $9575, a 201 per cent increase on the value a decade ago. Picture: Zoe Phillips

Mr Smith said better than expected summer rainfall, coupled with the forecast of climate drivers returning to neutral settings during autumn and winter has improved sentiment for the year ahead.

“While this may not necessarily renew strong demand for land purchases, it should mean that landholders feel less pressured to sell farmland for the time being, keeping supply of farmland on the market relatively subdued,” he said.

“As a result, values are expected to proceed through what we see as a period of stability as farm businesses focus on consolidation after recent years of expansion.”