Farm land prices have nearly doubled over the last three years
Farm land prices have nearly doubled over the last three years, increasing by 93% from 2020 to 2023.
ABARES Executive Director Dr Jared Greenville said recent growth in farmland prices has been extraordinary, and likely reflected a combination of factors including low interest rates, recent good commodity prices and seasonal conditions, and increased demand for land in general.
“Farmland is often used to secure lending, so increases in value can both improve equity and drive investment,” Dr Greenville said.
Median farmland prices have grown most in the high rainfall zone, increasing by 125% over the last 3 years to almost $9,000 per hectare. Price growth in the wheat-sheep zone was also strong, increasing by 80% over the same period to $3,465 per hectare.
Coming off a lower base, the average price of pastoral zone farmland increased by 130% since 2020 to reach $1,528 per hectare in 2023.