Farmland Prices Forecast to See Modest Growth in 2026

Australian farmland values are expected to record modest growth in the year ahead, according to Rabobank’s latest Farmland Price Outlook.

The report forecasts a two per cent rise in the median price per hectare in 2026, reflecting a more subdued phase for the land market.

This follows a relatively flat performance in 2025, when prices increased by just 0.4 per cent, well below the decade average of around 11 per cent annual growth.

Rabobank says the sector has now entered a weaker growth cycle, shaped by higher interest rates, softer commodity prices and ongoing cost pressures.

Grazing land is expected to outperform cropping country again this year, supported by resilient livestock prices and tighter supply in sheep and wool markets.

However, farm budgets are likely to remain under pressure, with elevated fuel and fertiliser costs linked to global factors, alongside the possibility of further rate rises.

Seasonal risks are also emerging, with forecasts pointing to a potential El Niño pattern, which could reduce rainfall and impact grain production.

Despite these challenges, farmland values are still expected to edge higher, although sale activity may ease as producers adopt a more cautious approach.