$15.6 billion of farmland sold in 2021

Price surge: Farmland values across Australia increased by 20 per cent from 2020 to 2021.

In 2021 a total of 10.8 million hectares of Australian farmland was traded for a record-breaking combined value of $15.6 billion.

The median national price for a hectare was $7087, with Tasmania recording the highest overall median price at $14,730/ha.

In Victoria the 2021 price was $10,583/ha and in NSW it was $6339/ha.

The Rural Bank Australian Farmland Values report has been tracking every farmland sale for almost three decades.

Andrew Smith from Rural Bank said Victoria had seen price growth in all regions, as city buyers moved into regional areas and farmers elected to retire while the prices were right.

“Looking forward for the remainder of 2022, the market is expected to remain strong, and with healthy local demand in most districts, prices are also expected to be well above average,” Mr Smith said of the Victorian market.

In NSW the prices were more mixed, with the central region actually seeing a 0.5 per cent decline in prices while the northern (5.5 per cent), western (22.4 per cent) and southern regions (28 per cent) all grew.

Rural Bank general manager Simon Dundon said despite signs of buyer caution emerging as interest rates grew, the intense competition for land would continue for a while yet.

“As it stands, 2022 is shaping up to be another strong year for Australian agriculture ... this should continue to fuel interest from buyers with enough demand still in the market to push prices higher again in 2022,” Mr Dundon said.

Across the nation, farmland values increased by 20 per cent from 2020 to 2021.