Based on data from the past 12 months, several key factors have significantly influenced the overall farm sales of gross agricultural produce in Australia.
In the past few months, Australia’s agricultural landscape has undergone notable changes. From fluctuating weather and global economic pressures to evolving consumer demands and policy changes. In this blog, we cover the key influences behind gross agricultural produce sales, uncover emerging trends, and assess what lies ahead for Australian farmers and agribusinesses.
Record Low Transaction Volumes
In the first half of 2024, Australian farmland sales dropped to a historic low of 2,966 transactions, marking an 18.7% decline year-on-year. This downturn reflects a 43% decrease since the peak in early 2021, driven by high asking prices and cautious buyer sentiment.
Rising Median Prices Amidst Cooling Activity
Despite fewer sales, median farmland prices continued to climb, reaching $10,141 per hectare nationally in H1 2024—a 12.2% increase from the previous year. Notably, Tasmania led with a 16.5% rise, while Western Australia experienced a 12.1% decline.
High-Profile Transactions Dominate the Market
2024 witnessed significant deals, including the $300–$350 million sale of the 26,885-hectare Worral Creek Aggregation in Queensland to US-backed Alkira Farms. Other notable sales involved Gina Rinehart’s Hancock Prospecting acquiring 460 hectares in Victoria for nearly $10 million, and comedian Carl Barron purchasing a $1.8 million eco-friendly farm in New South Wales.
Foreign Investment and Strategic Acquisitions
Foreign entities, particularly from the US, UK, and Canada, continued to invest in Australian agriculture. By the end of FY 2023/24, foreign ownership accounted for nearly 13% of agricultural land and 11.8% of water entitlements, prompting discussions on national security and asset management.
Outlook for the coming months
Analysts anticipate a rebound in farmland sales in 2025, driven by rising commodity prices, improved rainfall, and potential interest rate cuts. While challenges persist, the long-term outlook remains positive, with foreign investors eyeing Australian farmland for its stability and growth potential.
How Australia Is Revamping Farm Sales
1. Trade & Market Access
- China Trade Restoration: Beef, wine, and barley bans lifted, reopening major export channels.
- New FTAS: Stronger trade ties with UAE, UK, EU, Indonesia boost market diversification.
2. Climate & Sustainability Support
- Future Drought Fund: $519M for drought resilience and regional infrastructure.
- Climate-Smart Agriculture: $302M to promote sustainable and tech-driven farming.
3. Tech & Connectivity
- On-Farm Connectivity: Up to $30K rebates for digital and smart farming tools.
- Ag-Tech Boost: Extra $20M for farm tech and internet access improvements.
4. Infrastructure & Exports
- $1B Infrastructure Push: NFF calls for road upgrades to ease produce movement.
- Market Diversification Fund: Proposed $30M to reduce export risks.
5. Financial Support
- Farm Household Allowance: Financial aid for struggling farming families.
- Instant Asset Write-Off: Extended to mid-2025 for quicker equipment investments.
Conclusion
While the past year has seen a slowdown in Australian farmland transactions, rising land values and strategic investments signal confidence in the sector’s long-term potential. With support from government initiatives—ranging from trade improvements and climate resilience to tech adoption and infrastructure upgrades—Australian agriculture is positioned for recovery and growth. As 2025 approaches, the focus remains on revitalising sales, attracting sustainable investment, and future-proofing the industry against ongoing challenges.
Need insights into farm sales trends? Contact KG2 Australia, we are diligent in offering data and services that can support your decisions in the agricultural market.
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