What’s happening
Australian farmland values dipped across the first half of 2025 following 12 consecutive years of growth. Buyers and sellers have taken a step back amid challenging market conditions and ongoing landholding consolidation, according to the latest Bendigo Bank Agribusiness’s Unpacking Ag podcast.
In the latest episode, agricultural analysts Sean Hickey and Joe Boyle discussed the main drivers shaping farmland prices, how these factors evolved in early 2025, and what they could mean heading into 2026.
Why it matters
Bendigo Bank Agribusiness Senior Agricultural Analyst Sean Hickey said current conditions have slowed activity. “Properties are taking longer to sell as the result of current market conditions which have pushed the number of farm sales downward to a 30-year low,” Mr Hickey said.
He added that lacklustre cereal prices and ongoing drought pressures have seen buyers delay expansion plans. However, livestock strength revived sentiment across 2025 and could support grazing property demand where rainfall has improved.
Agricultural Analyst Joe Boyle noted that while distressed sales remain limited, dry conditions reduced buyer appetite. “A further rate cut or two, combined with the hope for some better seasonal conditions, have the potential to remove or at least reduce some of those major demand headwinds,” he said.
Queensland
Queensland remains among the better-positioned states heading into 2026. Joe Boyle said both Queensland and New South Wales “remain well positioned for growth” as improved rainfall and livestock demand support prices.
Grazing properties are expected to perform strongly due to positive seasonal recovery and continued buyer confidence across northern regions.
By the numbers
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Farmland sales have dropped to a 30-year low, showing clear buyer hesitation in 2025.
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12 consecutive years of price growth ended in early 2025 as markets cooled.
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Livestock markets strengthened through 2025, helping lift confidence in grazing property demand.
Zoom In
Dairy farmers have seen farmgate milk prices rise, but higher feed and fodder costs have limited growth, particularly in Victoria and South Australia. Cropping regions continue to face headwinds from weak cereal prices, highlighting a clear divergence between sectors.
Zoom Out
Analysts believe a return to modest growth is possible in 2026 as market sentiment improves and weather patterns stabilise. Consolidation trends are expected to continue as larger operators seek scale and efficiency amid tighter margins.
What to look for next
Watch for signs of rainfall consistency and further interest rate cuts. Both could ease key headwinds, restoring buyer confidence and supporting steady farmland value growth across 2026.
