AUSTRALIAN farmland values skyrocketed last year, increasing by 20 per cent, new figures reveal.
The median price of farmland last year hit $7087 per hectare, the largest year-on-year increase in 27 years, according to the Rural Bank Australian Farmland Values 2022 report.
Nationally, the median price per hectare has risen by 20 per cent in 2021, the largest percentage increase since 2005.
Rural Bank general manager sales partnerships and marketing Simon Dundon said buyer demand means properties have become fiercely sought after.
“Strong demand has made the market for farmland incredibly competitive,” Mr Dundon said.
“Stronger agricultural commodity prices, coupled with a second consecutive year of favourable seasonal conditions in most areas, improved cash flows and strengthened balance sheets with support from record low interest rates and confidence in the long-term outlook for the agricultural sector, all combining to see a surge in the buying power of Australian farmers.
“As it stands, 2022 is shaping up to be another strong year for Australian agriculture and the longer-term fundamentals remain strong. This should continue to fuel interest from buyers with enough demand still in the market to push prices higher again in 2022.”
Victoria had some of the biggest rises in the country, with farm values soaring by 30.4 per cent in 2021 to a median price per ha of $10,583.
Across Victoria, 256,327 ha of land was traded, with farmland values rising for the sixth consecutive year.
A record high of $2.4 billion worth of farms was sold in the state with the number of transactions rising by 12.8 per cent to 1817
Western Australia recorded the biggest growth with a 36.3 per cent year-on-year median price growth, while Queensland’s 31.3 per cent price growth was the second highest in the country.
Victoria’s 30.4 per cent growth ranked third, while NSW’s 8.3 per cent price growth ranked fifth.
Tasmania proved once again to have the most valuable farmland at a median price per hectare of $14,730, with productive conditions and constrained supply contributing factors.
