Revealed: How Victorian farmland prices changed last year

Farmers faced drier seasonal conditions and flippant commodity prices last year but how did that affect demand for farmland? See the details.

Farmland values across much of Australia remained stable last year despite a suite of economic and seasonal challenges testing buyer confidence.

The ABARES Farmland Price Indicator for 2024 has revealed farmland prices remained relatively flat across Victoria for the third consecutive year.

Victorian farmland was worth $12,084 a hectare last year after 675 transactions, a 1.6 per cent decrease on the 2023 value of $12,292 a hectare across the state.

However, farmland prices across NSW fell sharply last year, dropping to $9547 a hectare from $12,623 in 2023 – a 24 per cent decrease year-on-year.

Nationally, the farmland value was much more stable, falling slightly to $8309 a hectare, down almost 4 per cent from $8634 in 2023.

“There were relatively few cropping sales in 2024, with a number of vendors holding off marketing their properties. Values in northern Victoria have held up well, with no significant reduction evident,” Herron Todd White director Graeme Whyte said.

“Values have declined by around 5-10 per cent in the Wimmera and central Victoria. At this stage it is difficult to see any factors that are likely to contribute to value growth in 2025.

Victorian farmland prices remained relatively stable at $12,084 a hectare last year.

“While anecdotal evidence suggests balance sheets remain strong, confidence levels have been impacted by the patchy seasonal conditions in 2024 and farmers are expected to be cautious, especially while interest rates and input costs remain high.”

Across commodities the value of beef and cropping properties has also plateaued.

Southern Australian beef farms across NSW, Victoria, Tasmania, SA and WA were worth $16, 489 a hectare last year.

Meanwhile, cropping farms in Victoria, Tasmania and SA were worth $7694 a hectare.

Nationally, dairy farmland prices have fallen backwards dramatically from $39,350 a hectare in 2023 to $24,822 a hectare in 2024, a 37 per cent decrease year on year.

ABARES executive director Dr Jared Greenville said farmland prices were a double-edged sword for producers.

“On one hand, higher land prices boost farmer wealth and equity levels. This in turn increases lending capacity and supports productivity growth by allowing farmers to access capital for further investments in land and technology,” Dr Greenville said.

“On the other hand, relatively high land prices may create a barrier to entry and expansion.”