Australian farmland values have fallen slightly across the first half of 2025, dipping 3.1 per cent to a national median price of $9,885/ha, according to fresh data.
According to the latest Bendigo Bank Agribusiness Farmland Values Report, a larger number of sales occurred in the lower-priced states of South Australia, Western Australia and the Northern Territory, which pulled the national median down.
The Northern Territory led the price drops, with the median price per hectare falling 24.2 per cent, half-on-half, to $2,456/ha, followed by Tasmania with a 20.1 per cent drop to $17,575/ha.
Prices fell in Western Australia by 13.3 per cent to $6,074/ha, followed by Victoria, with a 10.4 per cent drop to $13,659ha.
South Australia and NSW were the only states to record growth in the first half of 2025.
Farmland prices in South Australia jumped 15.8 per cent to $9,214/ha, while NSW prices rose a marginal 1.3 per cent to $9,815/ha.
Bendigo Bank Agribusiness Senior Agricultural Analyst Sean Hickey said the slight decline in the national median value marked the first time since 2013 that national growth had stalled across the first half of the year.
“It was more of a plateauing than any genuine drop off in terms of the national farmland picture,” he said.
“It probably wouldn't be a surprise to anyone really, given the substantial growth that we've seen in previous years, but also when you consider the operating environment with some pretty challenging seasonal conditions for a lot of areas and a bit of a shift in commodity prices.
“We saw the cash rate come off a little bit, but it's obviously still quite high compared to what we saw during those real growth years.
“It's not a bad result by any means, even though it is a slight decline.”
National transaction volumes also fell to a record low 3,104 sales, which was 14.9 per cent down on the second half of 2024 and 11.5 per cent lower year-on-year.
The five-year average is 4,100 sales.
“The trend towards fewer overall farmland sales continued across the first half of 2025, with buyers tentative when considering purchases amidst tight margins,” Mr Hickey said.
“This was the case across cropping, dairy and horticulture enterprises, with properties taking longer to sell, particularly across more marginal areas.”
NSW recorded the biggest drop in sales volumes, down 23.8 per cent in the first half of 2025 to 1,163 sales, followed by a 22.4 per cent fall in Queensland to 713 sales.
Transaction levels rose notably in South Australia, up 56.1 per cent to 412 sales in the first half of 2025, while the Northern Territory recorded 23 sales, which was an increase of 15 per cent.
Mr Hickey said lower transaction volumes could also be somewhat attributed to off-market sales.
“What we're hearing is, a lot of farmers are putting their properties up as an expression of interest and then looking to sell off-market,” he said.
“So plenty of off-market sales have been reported as well, so that's probably a trend that we're hearing more of.”
Looking to the end of 2025 and into 2026, Mr Hickey said recent relief from interest rates had lifted borrowing power slightly and provided a modest improvement in market sentiment.
“However, farming input costs, including fertilister, 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,” he said.
“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.”
Queensland farmland values eased through the first half of 2025, with the median price falling 3.4 per cent to $9,558/ha, which was down 2.8 per cent year-on-year but still the third-highest half-yearly level on record.
Transactions also slipped 10.9 per cent year-on-year to 713 sales, marking the third-lowest level in more than 30 years.
In the regions, half recorded price lifts while half recorded falls.
The Central region saw prices jump 148.5 per cent half-on-half to $1,578/ha, while the Far North recorded an 11.7 per cent drop to $13,978/ha.
With high land values limiting short-term returns, buyers were increasingly selective and focused on long-term investment potential, though easing rates and firm market fundamentals could see mild growth return before year’s end.
Mr Hickey said the slowdown appeared to be a temporary pause rather than a structural shift, supported by strong seasonal conditions and resilient commodity prices.
He said the remainder of 2025 and the start of 2026 was looking up.
“The underlying drivers of commodity prices, seasonal conditions and interest rates are all certainly shifting towards more positive conditions,” he said.
“So I think we should see a return to growth, albeit modest growth, nationally.
“Victoria and Queensland should see a return to growth, while NSW should continue modest growth.”
Mr Hickey said South Australia’s 2026 outlook was more uncertain.
In the first half of 2025, the median price of farmland in the state climbed 15.8 per cent and was up 18.4 per cent year-on-year to $9,214/ha.
The increase was partly driven by a higher proportion of sales in premium regions, which skewed the statewide median upwards.
At a regional level, however, five of the state’s seven regions recorded year-on-year price declines amid persistent drought conditions and record rainfall deficits.
The North region recorded the largest price decline, falling 32.8 per cent to $2,722/ha from 32 sales.
Despite subdued demand for grazing and cropping land, transaction volumes surged 56.1 per cent half-on-half in South Australia and 6.7 per cent year-on-year to 412 sales, which is the highest level since early 2023.
“South Australia will be the interesting one,” Mr Hickey said.
“The 18.4% rise that we saw, was probably more artificial than anything, and as a result of a shift in the mix of where those sales were located.
“So if we see those sales return to more typical regions and areas at a state level, we may actually see a decline, which is fine because at a regional level, we think the majority of regions will return to growth.”
NSW farmland values continued to rise in the first half of 2025, with the median price increasing 1.3 per cent half-on-half and 4.7 per cent year-on-year to $9,815/ha.
Growth persisted, though at a slower rate than in previous years, as divergent seasonal conditions produced mixed buyer sentiment across the state.
Strength in the Far West, Southeast and North Coast regions underpinned the statewide lift, offsetting softer results in western districts.
Transaction volumes, however, fell to their lowest level in more than 30 years, down 23.8 per cent half-on-half and 8 per cent year-on-year to 1,163 sales, as tighter supply and selective selling supported prices.
While activity was weaker in the west, steadier sales in the northeast helped stabilise overall demand despite fewer listings.
Farmland values in Victoria softened notably in the first half of 2025, with the median price declining 10.4 per cent to $13,659/ha.
The fall was driven by challenging seasonal conditions across key regions, including the South West and South & West Gippsland, which restricted the capital buyers had available to expand holdings.
“There were obviously some really tough seasonal conditions impacting both your croppers and your graziers as well,” Mr Hickey said.
“Taking that year-on-year view, we saw declines pretty much across the majority of Victoria's Western areas… They more than outweighed any of the gains that we did see across the north-eastern regions of the state.
Transaction volumes also fell to 480, down 27.6 per cent year-on-year and the lowest on record.
Tasmanian farmland values weakened through the first half of 2025, with the median price falling 20.1 per cent to $17,575/ha and down 25.3 per cent year-on-year.
Buyer activity continued to contract, with just 41 transactions recorded for the period, a fall of 10.9 per cent half-on-half, as high livestock prices and challenging seasonal conditions narrowed the pool of purchasers.
Regional median price results were mixed in the first half of 2025, with the North West and North falling 3.3 per cent and 16.7 per cent respectively, while the South lifted 44.6 per cent to $13,941/ha.
However, gains in the lower-priced South were insufficient to offset losses in the higher-value North.
If rainfall improves, modest price recovery may follow, though tighter supply could constrain transaction volumes further.
The median price of Western Australian farmland fell 13.3 per cent half-on-half and 9.5 per cent year-on-year to $6,074/ha, though the decline reflected a shift in sales composition rather than widespread price weakness.
Four of six regions recorded year-on-year gains, led by Avon-Midland up 38 per cent, Great Eastern up 27.1 per cent, Northern up 7.4 per cent and the South West up 4.9 per cent.
Offsetting these were modest declines in the Great Southern, down 1.2 per cent, and Central, down 3.6 per cent.
High-value regions saw sales volumes slump, with the South West recording a 21.7 per cent drop in transaction levels in the first half of 2025, with just 36 sales.
Conversely, lower value zones surged, with Great Eastern recording a 19.6 per cent rise in transactions to 67 sales in the first half of 2025.
Kylie Dulhunty is a journalist with more than 20 years experience covering everything from court to health. Today, Kylie loves nothing more than turning market trends, industry insights and epic property sales - residential, rural and commercial into captivating stories.