Australian farmland values continued to plateau across the first half of 2025 according to the latest report from Bendigo Bank Agribusiness.
The national median price of farmland fell to $9,885/ha, representing a minor dip of 3.1 per cent year-on-year.
While in Victoria, South and West Gippsland dropped from $31,220/ha to $24,747/ha (20.7 per cent) and the Central region fell from $15,117/ha to $9,031/ha (40.3 per cent).
South Australia and New South Wales were the only states to record growth, with a general trend lower in the median price of farmland at a state level.
The major drivers of farmland values – commodity prices, varying seasonal conditions and interest rates all played a role in the state-by-state results.
National transactions fell to a record low 3,104 sales, down 11.5 per cent year-on-year and 14.9 per cent below the second half of 2024, well below the five-year average of more than 4,100 sales across the first half of the year. A larger than usual proportion of sales were recorded within the lower priced states of South Australia, Western Australia and the Northern Territory during the first half of the year.
This material shift in the distribution of farmland sales across those states and territories weighed on the national median. The sharp rise in land prices over the last decade has also limited the prospective pool of buyers to those with superior margins and deeper pockets. Efficiencies derived from economies of scale will continue to play a key role in buyer intentions, although generating viable returns at current land prices is likely to become an increasing obstacle for smaller producers.
Growth stalls
Bendigo Bank Agribusiness Senior Agricultural Analyst, Sean Hickey said: “The slight decline in median value marks the first time since 2013 that national growth has stalled across the first half of the year. Ongoing consolidation of landholdings, tighter margins and challenging market conditions have also kerbed the buyer urgency seen throughout 2020-2023.
“In terms of volume, the trend towards fewer overall farmland sales continued across the first half of 2025 with buyers tentative when considering purchases amidst tight margins. This was the case across cropping, dairy and horticultural enterprises with properties taking longer to sell, particularly across more marginal areas.
“Recent relief from interest rates has lifted borrowing power slightly and provided a tangible but modest improvement in market sentiment, however farming input costs including fertiliser, fuel and labour are still significantly higher than two to three years ago, and seasonal conditions linger as a larger factor impacting buyer intention in the current environment.
“The resurgence in livestock markets has also revived sentiment in 2025 and should support demand for grazing properties over the back half of the year where seasonal conditions have been positive, however, lacklustre cropping prices will remain a headwind to demand, particularly in marginal regions still dealing with the effects of drought.
“Improved rainfall across the country is expected to result in a positive shift in buyer interest over the back half of 2025 and into 2026 and further rate cuts should drive more consistent demand for farmland over the coming year”, Mr Hickey concluded.
VICTORIA
The state’s median price per hectare recorded a moderate decline of 10.4 per cent throughout the first half of 2025.
The softening in value was driven by poor seasonal conditions across the bigger regions of the Southwest and South & West Gippsland, which reduced the capital many buyers had available to purchase more land.
This was also evident in a significant reduction in transaction volume, which sits at 480, the lowest half yearly value on record.
However, with a favourable weather forecast across the back half of 2025 and stronger commodity prices, this could entice buyers to purchase more land throughout the back half of 2025.
From a regional standpoint, the key movers were South & West Gippsland which dropped from $31,220/ha to $24,747/ha (20.7 per cent) and the Central region which fell from $15,117/ha to $9,031/ha (40.3 per cent).
Only three of the eight regions recorded a decline, however the significance of these falls applied severe downward pressure on the state median price per hectare.
NATIONAL
Australian farmland values have continued to plateau across the first half of 2025. The national median price of farmland fell to $9,885/ha, a minor dip of 3.1 per cent year-on-year.
A larger than typical proportion of sales were recorded within the lower priced states of South Australia, Western Australia and the Northern Territory during the first half of the year. This material shift in the distribution of sales weighed on the national median.
From a volume perspective, the trend towards fewer overall farmland sales continued across the first half of 2025.
National transactions over this period fell to a record low 3,104 sales, down 11.5 per cent year-on-year.
The ongoing consolidation of landholdings, alongside tighter margins and challenging market conditions has limited the buyer urgency that was previously seen during 2020-2023.
Properties are continuing to take longer to sell as a result, particularly across more marginal areas.
Australia’s most valuable farmland by region:
Tasmania – Northwest and Northern: $25,143/ha
Victoria – South and West Gippsland: $24,747/ha
South Australia – Adelaide and Fleurieu: $23,651/ha
Western Australia – Southwest: $18,357/ha
New South Wales – North Coast: $14,948/ha
Queensland – North $14,946/ha
