Rural Bank and Rural Finance’s specialist insights division, Ag Answers, recently produced the Australian Farmland Values report for 2016 which provides analysis at a state and regional level, and is based on data compiled since 1995.
This year’s findings underline the resounding strength of Australian farmland value, with the median price in most states recording an average annual growth rate of three per cent over the decade, and more than six per cent for the past 20 years.
The analysis in the report is based on real farm sales since 1995 and draws on more than 230,000 transactions, accounting for 278 million hectares of land with a combined value of $132 billion.
The report shows that despite variable seasonal conditions and ever-changing commodities prices, the sustained growth in land prices not only reflects the resilience of the sector, but investor confidence in Australian agriculture’s growth prospects for the future.
While the performance of farmland prices in most states was buoyant, there were inevitable variables from state to state. Download you state summary here.
Rural Bank said to understand drivers of farmland value in each state, the report provided an overview of key national and state trends such as commodity prices, climatic conditions and other sectoral factors, lending rates and the broader investment environment. View the report here.
This information first appeared on the Rural Bank website.