Farm values steady or on rise

The Australian Farmland Values 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 the median value of Tasmanian farmland stabilised in 2016 and broke the cycle of dramatic price fluctuations year-on-year for the first time since 2008.

While the 12.8 per cent growth in median prices recorded in 2015 remains largely intact, there was a slight 0.4 per cent median price decrease in farmland values in 2016.

Coupled with a 15 per cent decline in the number of farmland transactions completed, and a 30 per cent fall in the area of farmland traded in the state year-on-year, Tasmanian farmland prices are likely to remain volatile.

Despite an overall slight decline in the median price of farmland in 2016, Tasmanian farmland has achieved an average annual median price growth of 6.6 per cent per year since 1997.

This statistic, more than any other, highlights the resilience of Tasmanian farmland as a long-term investment despite the challenges volatility can bring.

In Victoria, the median value of farmland soared by an astounding 12.9 per cent in 2016.

This underlines the resounding strength of Victorian farmland value.

The report also shows the median price of the state’s farmland has increased on average by 7.1 per cent over the last five years – and 5.3 per cent per year over the last 20 years.

Although the estimated number of farmland transactions declined by 18.7 per cent, and the total value of farmland traded was 14.1 per cent lower in 2016 when compared to 2015, the value of farmland traded was still historically high at about $1.1 billion.

Ag Answers has recently released annual reviews for wool and sheep.

These reports, and others for dairy, horticulture, cropping and trade can be found at www.ruralbank.com.au/for-farmers/ag-answers where you can subscribe to regular updates.

Monthly weather updates are also available.