Despite challenges from high interest rates and climate variability, the price of Australian agricultural land continued to rise in 2024, marking the 11th consecutive year of growth.
According to the Agricultural Property Value Report released by Bendigo Bank on May 6, the median price of agricultural land across Australia rose by 6.9% in 2024, reaching a record high of AUD 10,231 per hectare.
The report noted that a total of 4.7 million hectares of agricultural land changed hands during the year, with total transaction value reaching AUD 4.9 billion. Over the past 11 years, cumulative agricultural land sales have approached AUD 15 billion.
While agricultural land prices continued to increase, the rate of growth has noticeably slowed. Between 2018 and 2022, prices had, at times, doubled.
Bendigo Bank highlighted that the factors influencing land prices became more diverse in 2024, including high interest rates and significant variations in climate conditions across regions. For example, New South Wales and Queensland experienced abundant rainfall, while the southern regions faced drought—differences that were reflected in land values.
Tasmania recorded the highest year-on-year increase in farmland prices at 14%, followed by Queensland at 12%, where buyer confidence was boosted by a rebound in cattle prices. Victoria was the only state to see a decline in median farmland prices, while South Australia experienced slower growth due to drought conditions.
Gippsland in Victoria remained the most expensive region for farmland, with prices reaching AUD 29,335 per hectare. This was followed by northwestern Tasmania at AUD 27,019 per hectare, and the Adelaide and Fleurieu regions of South Australia at AUD 22,488 per hectare.
The report anticipates stronger farmland price growth in the second half of 2025, driven by rising livestock prices and increased crop yields.
