Farmland values hold firm as regional divide widens

Check out this week's rural property report: Farmland values hold firm as regional divide widens, Versatile Boam Creek Aggregation heads to online auction, Morris family adds 47,400ha Gilles Downs to pastoral portfolio and prime Tamworth irrigation asset with 1478ML water holding hits the market.

Farmland values hold firm as regional divide widens

Australian farmland values have held virtually unchanged over the past year, but the headline figure masks dramatic swings between states, regions and different types of agricultural land.

Digital Agriculture Services’ (DAS) Q2 2026 Rural Property Sales Report found the national median price was $10,470 per hectare, just $3 below the $10,473 recorded in Q2 2025.

While values fell 4.9 per cent from $11,006 per hectare in Q1, they remain about 32 per cent above the $7,943 recorded in Q2 2021.

DAS head of growth Sarah Gorman said the national result did not tell the full story of what was happening across rural Australia.

“A cropping enterprise in the wheatbelt, a grazing property in Queensland, and a lifestyle holding in regional NSW might all be categorised as rural property, but the factors driving their value can be fundamentally different,” she said.

DAS said while the rapid appreciation earlier this decade had moderated, there was “limited evidence of a material national repricing of Australian farmland”.

Instead, the market has become increasingly fragmented.

South Australia’s median rose 10 per cent to $11,490 per hectare, while NSW fell 6 per cent to $10,331, Queensland dropped 9 per cent to $9,443 and Victoria declined 16 per cent to $12,963.

Western Australia recorded a preliminary 71 per cent jump from $7,097 to $12,121 per hectare, but DAS cautioned this should not be interpreted as underlying farmland values increasing by that amount.

Historically, WA records fewer Q2 transactions and those lower volumes have tended to coincide with higher interim median prices.

Regional differences were even sharper.

In NSW, the Hunter climbed 47.1 per cent to $24,820 per hectare and Murray rose 35.8 per cent, while the Riverina plunged 40.3 per cent and North West NSW fell 36 per cent.

Victoria’s Mallee increased 43 per cent, while Glenelg Hopkins declined 25.1 per cent. Queensland’s Fitzroy Basin jumped 47.7 per cent but Condamine fell 49.9 per cent.

The type of land changing hands is also shifting. Dryland cropping represented 32.3 per cent of the available detailed H1 2026 transaction sample, up from 28.9 per cent in H1 2025.

Native grazing remained at 36.5 per cent, while modified pasture fell from 26.2 per cent to 23 per cent.

Cropping prices themselves were far from uniform, rising 58 per cent quarter-on-quarter in WA, 35 per cent in SA and 8 per cent in NSW, but falling about 23 per cent in both Victoria and Queensland.

Modified-pasture values rose 17 per cent in NSW and 49 per cent in WA, while native-grazing values fell 18 per cent in NSW and 19 per cent in Queensland.

Productivity remained strongly associated with value. Properties in the lowest long-term Net Primary Productivity quintile had a median of $4,049 per hectare, compared with $16,558 for the highest quintile – more than four times as much.

DAS stressed productivity alone did not determine price, with geography, rainfall, land use, property size and transaction mix also influential.

Ms Gorman said the increasingly varied results meant the focus needed to shift from whether Australian farmland overall was rising or falling to understanding what was driving individual markets.

Versatile Boam Creek Aggregation heads to online auction

Size: 1799ha

Location: Theodore, QLD

Sale method: AuctionsPlus auction on September 3 at 10am (AEST)

Sale price: N/A

A 1799ha mixed farming aggregation combining large-scale irrigation, cropping and grazing country in Central Queensland will head to auction next month.

The Boam Creek Aggregation, about 15km south of Theodore and 180km southwest of Rockhampton, will be auctioned online on September 3 at 10am (AEST) through AuctionsPlus.

The aggregation comprises two contiguous properties, Acacia at 1076.43ha, including an 89ha Special Lease, and the 723.38ha Boam Creek.

Together they provide about 387ha of flood irrigation, 272.5ha of centre pivot irrigation, 393ha of dryland cropping and 678.88ha of grazing and support land.

JLL Agribusiness executive Fergus Russell said the diversity of production options was one of the aggregation's strongest attributes.

“The biggest selling point is its versatility,” he said.

“ It’s truly a mixed farming asset with the row cropping, the center pivots, and the improved pastures across the balance of the grazing area.

“It’s really versatile in that regard for people looking to run a full cattle operation or people looking for a diversified mixed farming asset where they can run cattle and also grow grain crops or cotton.”

Acacia has demonstrated its cropping capability through cotton yields averaging 14.18 bales per hectare in 2024 and 13.99 bales per hectare in 2025.

It includes 204ha of flood irrigation, 216ha of irrigated Leucaena, 161ha of dryland Leucaena and 427ha of improved pastures.

Boam Creek has strong water security, with three pumps capable of extracting 250ML daily from the Dawson River, a 946ML unsupplemented allocation and extensive harvesting licences. Three ring tanks provide a further 1200ML of storage.

Across the aggregation, improved grazing country includes Buffel, Green Panic and Rhodes grasses, with the entire holding estimated to support about 1900 adult equivalents if operated exclusively for grazing under average seasonal conditions.

Mr Russell said buyer enquiry had largely come from surrounding districts.

“A lot of local interest,” he said.

“It has come from around the Taroom and Roma area and from around Theodore. Mostly private-based operators.”

He said cattle producers had been particularly attracted to the ability to support intensive grazing and produce silage year-round.

“I think that sort of drought-proofing grazing factor has definitely spiked a bit of interest in the market,” Mr Russell said.

Infrastructure across the aggregation includes two sets of cattle yards, machinery and hay sheds, three houses and additional workforce accommodation.

Morris family adds 47,400ha Gilles Downs to pastoral portfolio

Size: 47,400ha

Location: Iron Knob, SA

Sold price: N/A

One of South Australia’s premier wool-growing pastoral properties has changed hands, with neighbouring pastoralists Ian and Sandy Morris acquiring the 47,400ha Gilles Downs Station.

The property, about 77km north-west of Whyalla and 90km south-west of Port Augusta, was sold for an undisclosed price in late July on a walk-in, walk-out basis.

The Morris family, which owns nearby Thurlga and Yardea Stations, purchased Gilles Downs to expand its existing sheep grazing operations and pastoral footprint across the Gawler Ranges.

Ray White Rural South Australia principal Daniel Schell said the successful sale reflected the strong confidence being seen across South Australia’s pastoral property market.

“Quality pastoral assets continue to attract strong competition when they are well presented and appropriately taken to market,” Mr Schell said.

“Favourable seasonal conditions, strong livestock markets and confidence in the long-term outlook for agriculture are giving producers the confidence to invest in expansion opportunities.

“We’re continuing to see well-capitalised family farming businesses prepared to act decisively when quality pastoral properties become available, particularly where there is scale, well planned infrastructure and production potential."

Gilles Downs was offered to the market following the death of highly regarded pastoral industry figure Tony Freebairn earlier this year.

With direct frontage to the Eyre Highway, the property has built a strong reputation for wool production, with its clip consistently achieving yields of more than 70 per cent, along with low vegetable matter and quality micron results.

Its predominantly flat to gently undulating grazing country features established bluebush and saltbush, along with native grasses and clovers.

The station has a Pastoral Board maximum carrying capacity of 6000 sheep equivalents and has historically run more than 5000 wethers, while the annual harvesting of about 1000 to 2000 goats provides an additional income stream.

Water security is another key feature, with Gilles Downs benefiting from the relatively rare advantage of an SA Water mains connection as well as multiple dams.

Improvements include a homestead, workers’ quarters, a four-stand shearing shed and yards, shearers’ quarters and various shedding.

The station was offered walk-in, walk-out with plant and machinery included and an option to purchase the sheep on the property.

Gilles Downs also sits within the Whyalla West Release Area, providing potential for future large-scale renewable energy opportunities.

Prime Tamworth irrigation asset with 1478ML water holding hits the market

A highly developed irrigation property just outside Tamworth has hit the market, offering more than 130ha of farmland backed by almost 1500ML of water entitlements.

Lumiere & Riverview, 13.5km east of the Tamworth CBD, comprises two contiguous holdings spanning 132.69ha, with about 100ha under irrigation.

Offered for sale by Expression of Interest through LAWD, the property has 1,478ML of water entitlements, comprising 506ML of owned entitlements and 972ML of leased water.

LAWD director George Barton said the combination of irrigation infrastructure and water security made the Peel Valley holding a standout offering.

“Lumiere & Riverview represents a rare opportunity to acquire a highly developed irrigation asset in one of the New England's most productive agricultural regions,” he said.

“The scale of irrigation, significant water entitlements, extensive infrastructure and recent capital investment create a genuine turnkey operation capable of supporting a range of agricultural enterprises, from premium lucerne production through to fodder cropping and livestock finishing.”

Recent investment includes a new 52ha centre pivot, a towable pivot and two lateral irrigation systems, providing irrigation coverage across 85ha

A further 15ha is serviced by hydrants for hard hose and movable irrigators.

The property has also undergone an extensive soil development and restoration program since late 2022, including applications of composted cattle manure, lime and gypsum, along with green manure crops and deep cultivation.

Fronting both the Peel River and Reedy Creek, Lumiere & Riverview comprises fertile red-brown earths, black self-mulching soils and alluvial creek and river flats.

Its location close to the Australian Equine and Livestock Events Centre (AELEC) also provides access to year-round demand for premium lucerne hay from the region’s equine industry.

LAWD director Michael Corcoran said Tamworth’s broader agricultural credentials added to the property's appeal.

“Tamworth continues to be one of regional Australia's most sought-after agricultural centres, supported by excellent transport links, processing facilities and a strong equine sector,” Mr Corcoran said.

“With direct exposure to the thriving equine market through AELEC and a proven production history, Lumiere & Riverview offers purchasers both immediate income potential and long-term growth opportunities.”

Beyond its agricultural infrastructure, the property includes two substantial homesteads, hay and machinery sheds, storage facilities and cattle yards.

A 50m by 50m undercover equine arena further broadens its potential appeal to buyers connected to Tamworth’s established equine sector.

Lumiere & Riverview is being offered for sale by Expression of Interest, closing on October 15 at 12pm (AEDT).