UPDATE: Australian farmland values have experienced a significant drop of 3.8% in the first half of 2025, marking the first decline in over a decade. This urgent news comes as buyers remain cautious amid tight margins and economic challenges.
The latest report from Bendigo Bank reveals this downturn is compounded by record low sales, with only 3,104 transactions recorded in the first six months of the year. Sean Hickey, a spokesperson for Bendigo Bank, emphasized that this marks the first stall in national growth since 2013, a troubling signal for the agricultural sector.
Despite the national downturn, there are glimmers of hope. Increased rainfall and lower interest rates are anticipated to boost farmland values moving forward. Areas like South Australia have shown resilience, reporting a growth of 15.8%, while New South Wales recorded a modest increase of 1.3%. In contrast, Tasmania faced the steepest decline, plummeting 20.1% amid a challenging economic environment.
Nathan Calman, chief executive of TasFarmers, believes that the fundamental value of Tasmanian farms remains strong, citing their status as the highest-valued fields in Australia. “If we see better rainfall and some relief on interest rates, confidence will likely lift into 2026,” he stated, reflecting the optimism that some industry leaders hold.
The pressures on growers are evident, as David Jochinke, president of the National Farmers Federation, noted the “market moderation” after a long period of growth. He pointed out that operating returns against high land values are tightening, yet maintained that the agricultural sector remains robust and cyclical in nature.
The overall national growth trend over the past two decades has been notable, with farmland values rising by an average of 7.2% year-on-year. However, the latest figures suggest that this cycle may be shifting. The decline could also be influenced by an abnormal number of sales in lower-priced regions, skewing the data.
In terms of specific regional impacts, farmland values are as follows:
– Tasmania: $17,575, down 20.1%
– Victoria: $13,659, down 10.4%
– New South Wales: $9,815, up 1.3%
– Queensland: $9,558, down 3.4%
– South Australia: $9,214, up 15.8%
– Western Australia: $6,074, down 13.3%
– Northern Territory: $2,456, down 24.2%
As farmland values continue to face pressure, stakeholders are watching closely for any shifts that could signal recovery. The agricultural community remains hopeful that favorable weather patterns and economic adjustments will rekindle growth in this vital sector.
Stay tuned for more updates as this story develops.
