Median farmland values increased by 6.9 per cent in 2024 to a record $10,231 per hectare, according to Bendigo Bank's Agribusiness Farmland Values report released on Tuesday.
But despite more than a decade of consecutive growth, the figures represent a cooling in the rate of annual increases compared to 2018 to 2022, when values more than doubled.
"The underlying drivers of the Australian farmland market were more varied in 2024 with elevated interest rates a constant and with a greater mix of seasonal conditions," Bendigo Bank executive Neil Burgess said.
"Favourable weather in NSW and Queensland has been in stark contrast to the significant lack of rain experienced in southern regions, which has been reflected in farmland prices."
Victoria was the only state to experience a decline in the median price per hectare, along with slowing growth in South Australia due to drought conditions.
Tasmania experienced the strongest growth year-on-year at 14 per cent, followed by Queensland at 12 per cent.
Buyer sentiment was buoyed by a rebound in cattle prices in Queensland, the report said.
The report showed 4.7 million hectares of farmland, roughly the size of Denmark, was sold for a combined value of $4.9 billion in 2024.
The most valuable farmland was in Victoria's Gippsland region at $29,335 per hectare, followed by Tasmania's northwest at $27,019 and South Australia's Adelaide and Fleurieu regions at $22,488.
Values are expected to record stronger growth in the second half of 2025, off the back of recovering livestock prices and rising crop production.
Farmland availability is tight, with mixed seasonal conditions and uncertainties in global trade, Mr Burgess said.
"So our outlook is for continuing moderate growth in farmland values across 2025."
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