Australia’s median farmland price has climbed 7.6 per cent to $10,719 per hectare, even as sales numbers fell to a record half-yearly low in the first six months of 2026.
Bendigo Bank’s Australian Farmland Values Mid-Year Report has revealed an increasingly two-speed market, with well-capitalised producers competing for premium properties while smaller operators pursue alternatives to buying more land.
Just 3,076 sales covering 1.72 million hectares were recorded nationally during the period, down 1.6 per cent year-on-year and well below the five-year average of 3,988 sales.
Ongoing consolidation and a widening gap between buyer and seller expectations contributed to lower turnover.
“The farmland market's strength was largely underpinned by robust commodity performance and favourable seasonal conditions across southern Australia, although the high-cost operating environment has softened buyer appetites in more marginal areas,” Bendigo Bank Agribusiness Senior Industry Insights Manager Eliza Redfern said.
“What we are seeing across the country is an increasingly two-speed market.
“Strong balance sheets and scale are enabling well-capitalised producers to compete vigorously for top-tier holdings, while smaller or expanding family operations are tending towards a strategic shift.
“Options such as leasing, share-farming, and on-farm capital improvements are increasingly used by these producers to build resilience without buying additional land.”
Strong livestock markets supported producer cash flow and demand for grazing properties.
Grain markets, however, remained relatively flat as rising input costs squeezed margins and tempered buyer appetite.
The results highlight how commodity returns, operating costs and the mix of properties sold are shaping the market, with national price growth occurring alongside fewer transactions and differing levels of demand for grazing and grain producing land.
Every state and territory except Tasmania recorded year-on-year growth in farmland values, with buyer demand remaining more constrained in Tasmania.
Median prices increased in 54 per cent of agricultural regions, compared with 38 per cent in the first half of 2025.
A further 21 per cent remained stable, while 26 per cent recorded declines.
A greater share of transactions in higher-value regions also supported the national median, with Victoria accounting for 17.3 per cent of sales.
“Looking ahead, farmland values are projected to hold their ground through the second half of 2026, supported by strong livestock returns and near-record southern crop yields,” Ms Redfern said.
“However, rural property growth is anticipated to moderate in 2027 as cumulative interest rate rises, potential dry weather forecasts, and persistent input cost pressures test farm balance sheets and suggest buyers will exercise increased caution, particularly across secondary and marginal country.”
Queensland’s median farmland price rose 11.9 per cent year-on-year to a record $11,047 per hectare in the first half of 2026, supported by strong cattle markets and ongoing property consolidation.
Western Downs recorded the strongest growth, up 36.8 per cent to $5,065 a hectare, followed by South East Queensland, up 21.2 per cent to $17,065, with larger buyers and competition for neighbouring holdings supporting demand despite increasingly selective purchasing.
Central Queensland recorded the largest decline, down 33.3 per cent to $1,053 a hectare, while Central Highlands fell 19.1 per cent to $5,944, as dry conditions and rising input costs encouraged caution, although premium, well-watered properties remained sought after.
Statewide sales fell 10.8 per cent to 647, the lowest half-yearly volume in more than 32 years, as affordability pressures encouraged producers to consider smaller purchases, leasing and property improvements.
The median farmland price in NSW increased 2.1 per cent year-on-year to $10,058 a hectare in the first half of 2026, extending its growth streak to 16 consecutive half-yearly periods but recording its weakest annual increase since the second half of 2013.
The Hunter recorded the strongest regional growth, up 19 per cent to $16,757 a hectare, followed by Riverina Murray, up 14.7 per cent to $10,237, with firmer commodity prices and strong production in 2025 supporting statewide sentiment.
The Far West was the only region to decline, falling 50.4 per cent to $763 a hectare across just 22 transactions, while its regional commentary identified seasonal uncertainty, changes to capital gains tax, higher interest rates and rising input costs as constraints on expansion.
Statewide sales fell 1.6 per cent to a record half-yearly low of 1,144, with weaker buyer confidence and a gap between purchaser and vendor expectations leaving properties on the market longer.
Victoria’s median farmland price rose 7.7 per cent year-on-year to $14,837 a hectare in the first half of 2026, supported by improved seasonal conditions and confidence, although it remained 1.1 per cent below the preceding half-year.
The Mallee region led regional growth, up 32.3 per cent to $5,871 a hectare, closely followed by South & West Gippsland, up 32 per cent to $33,029, with favourable cropping conditions and tightly held land supporting Mallee demand, while good seasons and livestock prices underpinned Gippsland confidence.
South West recorded the largest decline, down 14.6 per cent to $15,465 a hectare, followed by Wimmera, down 6.1 per cent to $9,989, although South West producers were prioritising recovery over expansion and Wimmera cropping enterprises remained active buyers.
Sales increased 9.9 per cent to 532, but higher borrowing and operating costs encouraged selective purchases, with neighbouring parcels remaining strongly contested.
Tasmania’s median farmland price fell 9.5 per cent year-on-year to $15,904 a hectare in the first half of 2026, with a greater share of sales in the lower-priced South pulling down the statewide result.
Northern recorded the strongest annual growth, up 11 per cent to $19,513 a hectare, followed by North West, up 6.1 per cent to $26,689, as well-improved northern properties held their appeal and competition for smaller parcels supported North West values.
South was the weakest reported region, down 4.9 per cent to $13,265 a hectare, with dry conditions and concerns about water availability weighing on sentiment, while irrigated properties continued to command a premium.
Statewide sales fell 51.2 per cent to just 20, making medians particularly sensitive to the mix of properties sold, as higher costs and borrowing pressures encouraged debt reduction and property improvements over expansion.
South Australia’s median farmland price increased 9.5 per cent year-on-year to $10,121 a hectare in the first half of 2026, supported by improved seasons following successive drought-affected years and a greater share of transactions in higher-value regions.
North recorded the strongest growth, up 75.9 per cent to $4,929 a hectare, followed by Eyre Peninsula, up 42.3 per cent to $3,113, with exceptional rainfall and stronger sheep, beef and wool prices supporting northern conditions, while vastly improved seasons encouraged Eyre Peninsula listings.
The Murray & Mallee region recorded the largest decline, down 30.6 per cent to $3,220 a hectare, as high diesel and fertiliser costs, alongside interest rates, constrained demand.
Sales rose 2.6 per cent to 427, with premium properties continuing to attract strong interest and anticipated harvest income expected to support demand later in 2026.
Western Australia’s median farmland price rose 20.9 per cent year-on-year to $7,345 a hectare in the first half of 2026, partly reflecting a greater proportion of sales in higher price brackets.
The Great Eastern region recorded the strongest growth, up 71.3 per cent to $3,335 a hectare, followed by Central, up 27.2 per cent to $8,150.
However, Great Eastern’s result was heavily influenced by increased sales in Narembeen and Kondinin and large, high-priced transactions in Dalwallinu.
Avon-Midland recorded the largest decline, down 18.2 per cent to $8,169 a hectare, followed by South West, down 8.2 per cent to $16,857, while higher operating costs and interest bills constrained purchasing capacity despite continued competition for good neighbouring farms.
Statewide sales remained unchanged year-on-year at 273, with buyers expected to remain selective as higher fertiliser and fuel costs, without corresponding grain price increases, encouraged caution.
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.