Australian agricultural land values performed strongly through the first half of 2026, with the national median price climbing 7.6 per cent to reach $10,719 per hectare, according to Bendigo Bank Australian Farmland Values Report.
Despite market growth, compared to the same time last year the volume of farmland changing hands has continued to reduce in 2026.
Just 3,076 sales consisting of 1.72 million hectares of land occurred across Australia during this six-month period, falling to a record half-yearly low, in part driven by ongoing land consolidation, and a growing gap between buyer and seller expectations.
Senior industry insights manager Eliza Redfern said market strength was largely underpinned by robust commodity performance and favourable seasonal conditions across southern Australia, although the high-cost operating environment has softened buyer appetites in more marginal areas.
“What we are seeing across the country is an increasingly two-speed market.
Strong balance sheets and scale are enabling well-capitalised producers to compete vigorously for top-tier holdings, while smaller or expanding family operations are tending towards a strategic shift.
“Options such as leasing, share-farming, and on-farm capital improvements are increasingly used by these producers to build resilience without buying additional land.”
The elevation of livestock markets maintained strong cash flow for producers, sustaining demand for grazing land across the first half of the year.
In comparison, grain markets were relatively flat, failing to keep up with rising input costs which compressed margins and moderated buyer appetite.
At a state-level, the results reaffirmed the largely positive momentum seen at a national level.
All states and territories recorded year-on-year farmland market growth, except for Tasmania where buyer demand remains more constrained.
Nationally, 54 per cent of agricultural regions recorded an increase in median price in H1 2026, up from 38 per cent in H1 2025, while 21 per cent remained stable and only 26 per cent registered declines.
A growing proportion of sales in higher value regions such as Victoria, which accounted for 17.3 per cent of national transactions, also provided upward support to the headline national median farmland price.
“Looking ahead, farmland values are projected to hold their ground through the second half of 2026, supported by strong livestock returns and near-record southern crop yields,” said Ms Redfern.
“Rural property growth is anticipated to moderate in 2027 as cumulative interest rate rises, potential dry weather forecasts, and persistent input cost pressures test farm balance sheets and suggest buyers will exercise increased caution, particularly across secondary and marginal country.”