Why Australian Farmland Values Keep Rising – What Investors Should Know
Key Takeaways:
- In 2023, farmland prices in Australia grew by 17.3%, marking the 10th consecutive year of growth.
- Strong demand, limited supply, and rising investor interest are fueling the boom.
- Top-performing regions include Wimmera (VIC), Riverina (NSW), and Eyre Peninsula (SA).
- Australian farmland offers long-term growth and inflation protection for investors.
Strong Growth Backed by Data
The national average farmland value in Australia rose by 17.3% in 2023, according to Rural Bank. This marked the tenth consecutive year of growth. In regions like Victoria’s Wimmera, rural land prices exceeded $10,000 per hectare, nearly doubling within a few years. These agricultural land price trends highlight the resilience of farming land as an investment.
Why Is Farmland So Hot Right Now?
Several key factors are pushing up Australian farmland values and making rural property more attractive to investors:
- Global food demand: Growing populations in Asia rely on Australia’s clean, reliable produce.
- Tight supply: Less than 2% of farmland changes ownership each year, limiting availability.
- Institutional investment: Super funds and agri-investment firms are targeting farmland for long-term profitability and stability. See also: Why Is Agricultural Investment in Australia a Smart Move Today?
Top Regions Driving the Growth
Not all rural land investments are equal. Certain regions stand out in terms of growth and profitability:
- Riverina (NSW): Strong irrigation systems and agricultural diversity.
- Eyre Peninsula (SA): Reliable seasonal weather and high crop yields.
- Northern Tasmania: Attractive for traditional farmers and lifestyle buyers alike.
Related reading: Top 5 Agriculture Investment Opportunities in Australia for 2025
Things to Consider Before Investing
Buying farmland is different from purchasing urban property. Before entering the rural land investment market, consider:
- Rainfall patterns and climate stability in the region.
- Soil quality and agricultural productivity potential.
- Access to water entitlements or irrigation systems.
- Your investment strategy — leasing the land or self-farming.
When these conditions are favorable, farmland can deliver both capital growth and consistent income through leasing or production.
Frequently Asked Questions
Will Australian farmland values keep increasing?
While future growth may not match 2023’s record pace, farmland is expected to maintain strong long-term value due to limited supply and rising food demand. Read also: Is Farming Profitable in Australia?
What type of farmland is most attractive?
Highly productive farmland in regions with strong water resources and infrastructure, such as Wimmera and Riverina, leads investor demand. See also: How To Choose The Best Farmland Investment Company In Australia?
Is farmland a reliable inflation hedge?
Yes. Farmland is a physical asset that tends to appreciate faster than inflation, making it a secure store of value during uncertain times.
Conclusion: A Smart Long-Term Investment
With Australian farmland values consistently rising, agricultural land has emerged as one of the most reliable long-term investments. Supported by global food demand and a limited supply of farming land, rural property continues to offer inflation protection, capital growth, and income opportunities. For investors seeking stability and tangible assets, farmland may be one of the most underappreciated opportunities in Australia’s investment landscape. To explore further, check out Why Investing in Australian Agribusiness is the Key to Long-Term Growth and From Farm to Future: Building Wealth Through Agriculture.
Or contact us online to discuss your farmland investment strategy.
