The Rural Bank's annual Australian Farmland Values report reveals that in the Federation Council local government area farmland values rose modestly in 2024, reaching a median price of $12,336 per hectare. This represents a robust 17.3 per cent compound annual growth rate since 2019.
In neighbouring Indigo Shire, farmland medium values were at an impressive $18,997 per hectare in 2024, representing a compound annual growth rate of 14.4 per cent over the last five years.
One of the biggest sales in the region was $10 million for the 931-hectare Wangamong property at Oaklands. The property was owned by the Simpson family of Deniliquin and picked up by the Inchbold family from Yarrawonga.
Brian O’Shea from Paull & Scollard Nutrient Ag Solutions in Corowa said land values continue to be high but have stabilised since 2024.
“The interest remains strong, mainly from local and the bigger farmers,” Mr O’Shea said.
“I don’t see any young farmers looking to expand and buy into the market anymore.
“At the moment, it’s a buyer’s market for the bigger farmers.”
Mr O'Shea emphasised that escalating fixed costs, including council rates, insurance premiums, and fuel prices, continue to pose significant challenges for many farmers, squeezing profit margins despite rising land values.
He said farmers are taking a more holistic approach to working through their costs, plus seeking independent advice such as agronomists and running much tighter businesses.
“But farmers, unfortunately, buy at retail prices and sell wholesale prices, and it is getting tighter out there,” Mr O’Shea said.
Bendigo Bank Agribusiness Senior Manager Industry Affairs, Neil Burgess, said farmland values across many parts of Australia have steadied during 2024, following a slowdown in growth observed throughout 2023.
“While this was the 11th consecutive year of growth, it represents a notable cooling in the rate of annual increases compared to 2018-2022 when the median price growth more than doubled,” Mr Burgess said.
“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.
“The sharp rebound in livestock prices across late 2023 and into 2024 drove a substantial improvement in buyer sentiment, particularly across New South Wales and Queensland, with demand for farmland in grazing regions surging after an underwhelming performance throughout 2023.
“Looking to the remainder of the year, anticipated interest rate cuts, while supportive, are unlikely to drive a widespread resurgence in demand.
“Farmland availability remains tight and mixed seasonal conditions across the country, combined with ongoing uncertainty in global trade and commodity markets, are expected to limit the prospect of substantial growth in 2025, so our outlook is for continuing moderate growth in farmland values across 2025,” Mr Burgess said.
