The 2024 Mid-Year Update from Rural Bank on Australian Farmland Values is out and has revealed some cork popping news that farmland prices have enjoyed continued growth. In the first half of 2024, the median price of farmland reached $10,141 per hectare, reflecting a 12.2% year-on-year increase from the previous year.

Notably, this period marks the 22nd consecutive half-year of year-on-year growth in Australian farmland values. Moreover, a contraction in transactions has assisted in underpinning values. According to Rural Bank, transaction volumes dropped to a record low of 2,966, down 18.7% year-on-year and 4.8% below the second half of 2023. There has been a very consistent fall in the number of transactions since a peak in the first half of 2021. 

Median price movements varied significantly across the states, with Queensland and New South Wales enjoying continued growth. Rural Bank noted that seasonal conditions have been more favourable in these states, likely supporting buying intentions. For example, the median price of farmland in Queensland lifted to a record high of $9,777/ha in the first half of 2024. This was a 5.6% lift from the second half of 2023 and a year-on-year gain of 17%. Queensland farmland has enjoyed five years of sustained growth, with the median price per hectare increasing in nine of the past ten half-year periods.

In New South Wales, the median price per hectare of farmland increased during the first half of 2024 as reduced transaction volumes continued to support market growth. The median price increased to $9,745/ha, up 13.4% compared to a year earlier and 5.6% higher than the second half of 2023. This was the twelfth consecutive half-on-half increase, a period in which the median price has more than doubled, up 138.3%. The state’s median price growth was driven by significant year-on-year increases in the Central West (+24.9%) and New England and Northwest regions (10.7%), while more modest gains were seen in the North Coast (5.6%) and Riverina Murray areas (3.9%).

Tasmania also saw growth in the state median, although this increase was confined to the Northern region (+42%), as the rest of the state stabilised or declined. Victorian values have plateaued across the past 18 months, with the first half of 2024 registering a half-on-half decline – although strong growth continued in the Mallee (11.8%) and Central regions (7%). Western Australia and South Australia both battled dry conditions in the first half of 2024, which likely translated into median prices falling from the record highs seen in the second half of 2023. However, both states saw growth on a year-on-year basis. 

Travis Wentriro, Network Manager at Raine & Horne Rural, said, “The main factors affecting farmland values—commodity prices, seasonal conditions, and interest rates—have varied across different regions and commodities. 

“Dry conditions have challenged much of southern and Western Australia, while Queensland and New South Wales have seen favourable rainfall. Livestock prices have recovered after a difficult 2023, although crop prices have eased slightly. This explains the varied movements in median prices across the country. 

“However, the longer-term outlook is promising, with demand likely to increase if the Bureau of Meteorology’s forecast of above-average rainfall for parts of eastern, western, and far northern Australia between November and January holds true and interest rate cuts begin in early 2025.”

Contact your local Raine & Horne Rural office today if you’re considering listing a rural property.