The Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 25 basis points to 4.10 per cent is unlikely to have an immediate impact on the rural property market, but industry leaders warn a prolonged higher-rate environment could begin to weigh on buyer confidence.
LAWD Senior Director Col Medway said while the latest increase would be felt, broader agricultural conditions would continue to drive short-term decision-making.
“Higher interest rates and, probably more importantly, higher input costs such as diesel, has a negative impact on debt servicability. While not immediate, if prolonged, it will have an impact on buyer confidence,” he said.
Mr Medway said underlying agricultural fundamentals were still driving decision-making in the current market.
“(In the shorter-term) good weather and commodity prices will be more important than rates,” he said.
Colliers Head of Agribusiness Rawdon Briggs said the latest rate hike was unfortunate.
“It’s regrettable given that as economists, they're looking to dampen demand when we're coming into seeding, fuel demand is rising and fuel costs have already risen by 30 to 40 per cent,” he said.
“That alone will dampen the economy, so it's already done the job for them. I don't understand why you would put interest rates up while you're in the middle of a fuel shock.”
Despite this, Mr Briggs flagged potential upside in agricultural markets, noting supply disruptions could support commodity prices.
“Generally after a shock, like that we're experiencing now, you'll see quite substantial commodity price corrections in the upward direction,” he said.
“It will create a situation very similar to what we've seen in many cycles prior, back to the 70s.
“I can remember the gross margins in cattle and beef, which were terrible in the 70s.
“We went through the shock and then, in the 80s, came out the other side.
“The gross margins on trading cattle and livestock were pretty handy in the 80s and they just got better from there.”
RBA Governor Michele Bullock said the Board’s decision was driven by renewed inflationary pressures and global uncertainty.
“Inflation has fallen substantially since its peak in 2022, (but) it picked up materially in the second half of 2025,” she said.
She pointed to rising fuel prices amid conflict in the Middle East and stronger-than-expected domestic demand as key risks, warning inflation could remain above target for longer than anticipated.
“There are material uncertainties about the outlook for domestic economic activity and inflation and the extent to which monetary policy is restrictive,” Ms Bullock said.
“Globally, the conflict in the Middle East poses substantial risks in both directions.
“A longer or more severe conflict could put further upward pressure on global energy prices; this will push up near-term inflation and could also increase inflation further out if it impairs supply capacity or price rises get built into longer term inflation expectations.
“Higher prices and prolonged uncertainty may cause growth to be lower in Australia’s major trading partners and also in Australia.”
Ms Bullock added the Board would remain data-dependent, with future decisions guided by inflation, labour market conditions and global economic developments.
Size: 636ha
Location: Bundaberg, QLD
Sale price: Close to $40 million
Global investment manager New Forests has expanded its agricultural footprint in Australia, acquiring a portfolio of macadamia orchards and farmland near Bundaberg in Queensland in a deal understood to be worth close to $40 million.
The 636ha aggregation, which will be known as Bunya Orchards, has been purchased for the firm’s Australia New Zealand Landscapes and Forestry Fund (ANZLAFF) and comprises a mix of producing orchards, development land and areas of native vegetation.
The portfolio includes 341ha of established high-density macadamia orchards spread across seven semi-contiguous properties in the Wide Bay-Burnett region, along with 50ha of grazing land earmarked for future greenfield macadamia development.
Significant areas of retained native vegetation are also included across the holding, creating opportunities for environmental plantings and natural capital initiatives.
New Forests will manage the asset directly, supported by specialist agricultural expertise from its related entity New Agriculture.
The strategy will focus on improving both production outcomes and environmental performance across the portfolio.
Planned initiatives include land-use optimisation, expansion of macadamia plantings and environmental projects that may generate value through Australian Carbon Credit Units (ACCUs), biodiversity credits and other nature-based programs.
The firm also intends to pursue a range of emissions-reduction initiatives, including decarbonising irrigation systems through on-site solar and battery storage, transitioning farm vehicles from diesel to electric and hybrid alternatives and introducing biological solutions aimed at reducing fertiliser use.
New Forests Managing Director Australia and New Zealand and Global Head of Investments David Shelton said the acquisition aligned with the group’s broader investment strategy.
“This macadamia aggregation is a quality, future-focused addition to the ANZLAFF portfolio, aligning with our whole of landscape investment strategy,” he said.
“The asset provides exposure to a high-growth tree nut market while enabling opportunities to integrate natural capital, improve ecological outcomes and build long term value for our investors.
“The acquisition strengthens ANZLAFF’s agricultural footprint and further diversifies exposure across uncorrelated land-based asset types and geographies.”
The purchase marks the second agricultural asset secured for the ANZLAFF fund, following its August 2025 acquisition of a 50 per cent stake in McPhee Beef Farms, later renamed Benditi, a supplier of F1 Wagyu beef.
Located about 28km west of Bundaberg and 14km east of Gin Gin, the orchards sit in one of Australia’s most productive macadamia growing regions.
Orchard management services will continue to be provided by Macadamia Farm Management, Australia’s largest macadamia orchard manager.
Size: 255.76ha
Location: Tenterfield, NSW
Sale method: Private treaty
Price guide: $2.95 million
A 255.76ha equestrian and cattle property near Tenterfield offering extensive horse facilities, modern infrastructure and productive grazing country has been listed for sale at $2.95 million.
Known as ‘Larritburn’, the property sits at 1166 New England Highway, about 12 minutes from the Tenterfield township, and is being marketed by APL Tenterfield sales agent Mark Clothier.
Spanning eight titles with two legal access points, the property combines purpose-built equestrian infrastructure with grazing land suited to cattle production, while also offering potential for tourism or lifestyle use.
Clothier said the holding had been developed as a fully equipped horse property, with facilities designed for training, handling and managing livestock.
The equestrian infrastructure includes a cutting-sized arena integrated with cattle yards and a professional round yard. Ironbark and cattle-rail stables feature an undercover feed and tack area, while horse holding paddocks are equipped with shelters, stables and automatic watering systems.
Two horse-fenced grazing paddocks with laneway access further support horse management, alongside a visitor paddock finished with post and rail fencing.
“The spectacular granite hill country throughout the property provides multiple looped trails perfect for trail-riding, mountain biking, and bushwalking adventures,” Clothier said in the listing.
Beyond the horse facilities, the property also offers productive grazing country divided into 11 paddocks with 13 dams and five holding paddocks.
Tenterfield Creek runs along the southern boundary and is supported by solar pumping infrastructure, while total tank storage across the property reaches about 180,000 litres.
At the centre of the holding sits a three-bedroom, two-bathroom residence positioned to capture views across the surrounding landscape.
The home includes a gourmet kitchen with Belling range, butler’s pantry and Caesarstone benches, as well as indoor-outdoor entertaining areas, balcony dining spaces and a theatre system in the main living area.
Additional infrastructure includes multiple machinery sheds, a float and caravan shed, advanced solar power systems, wireless NBN connectivity and security systems.
Clothier said the combination of facilities, landscape and infrastructure made the property a rare offering in the region.
“‘Larritburn’ represents a unique opportunity to acquire a completely equipped, modern equestrian property with exceptional infrastructure, productive land, and breathtaking natural beauty,” he said.
Size: 3,908ha
Location: Griffith NSW
Sale method: Private treaty
Price guide: $110 million-plus
A large-scale Riverina almond aggregation expected to fetch more than $110 million has been brought to market, with North American agricultural asset manager and investor Manulife set to divest the holdings after a five-year investment period.
The 3,908ha Lachlan and Murrumbidgee Portfolio is located along the Lachlan River in the Riverina and comprises two non-contiguous properties within a 50km radius: Lachlan Valley Farm (3,822ha) and White Road Orchard (87ha).
Manulife acquired the NSW Riverina assets in 2020 and has held them as part of a five-year investment term.
The global agricultural investor, headquartered in Toronto, Canada, also maintains a major United States office in Boston, Massachusetts.
Both orchards sit within a key almond producing district responsible for about 20 per cent of Australia’s almond supply, with the orchards recording an historic yield average of three tonnes per hectare.
At Lachlan Valley Farm, around 920ha have been developed to almond trees with a weighted average age of 16.5 years.
About 215ha are currently leased to an ASX-listed company until May 2030, providing a secure income stream for a future owner.
A further 46ha is considered suitable for additional horticultural development, while the remaining land is used for grazing and operational support.
Nearby White Road Orchard contains 27,159 almond trees planted across 81ha.
The orchard was developed in two stages in 2015 (34ha) and 2017 (47ha), giving the trees a weighted average age of 9.5 years.
Water security is a major feature of the offering.
The portfolio includes allocations of 10,305ML of Lower Lachlan Groundwater, 470ML of Lachlan River High Security water and 1,443ML of Lachlan River General Security water.
Eight equipped bores supply groundwater into a tributary feeding the main supply channel, which distributes a combination of Lachlan River water and high-security groundwater.
White Road Orchard also holds 1,576ML of Murrumbidgee Irrigation Delivery Entitlements, with water supplied through the Murrumbidgee Irrigation Area Channel Scheme and stored in a 16ML on-site dam.
LAWD senior director Danny Thomas said the aggregation represented a rare large-scale opportunity in a tightly held sector.
“The Portfolio offers the astute investor the opportunity to acquire an outstanding institutional-scale holding that benefits from strategic capital investment and high-security water entitlements,” Mr Thomas said.
“With a portion of the property leased to vertically integrated almond grower, processor and marketer for a further seven years, the incoming buyer will benefit from secure income alongside the established almond production.
“We expect to see strong interest from domestic or international corporate farming groups or institutional investors, as well as existing industry participants seeking expansion opportunities.”
Infrastructure at Lachlan Valley Farm includes an office complex, two four-bedroom homesteads, two managers’ residences, transportable workers’ quarters, a cottage, workshop and machinery, fertiliser and chemical sheds.
White Road Orchard includes a 135sq m implement and irrigation shed built in 2015, along with extensive irrigation and fertigation infrastructure.
The properties are positioned close to major almond processing facilities, including plants at Griffith, Robinvale and Mildura.
White Road Orchard sits 15km north-west of Griffith, while Lachlan Valley Farm is about 100km north-west of the regional centre and roughly 540km from Sydney.
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.