Australian farmland costs are set to rise once more this yr, however progress will likely be slower than previously three years, based on the yearly snapshot from Rabobank.
The agricultural lender forecasts farmland worth will enhance within the subsequent 12 months throughout all sectors by 5 per cent per hectare, with cropping land to outperform grazing land.
“Land prices will maintain their growth trend, but not for all sectors and regions,” the report mentioned.
“Land that is used to produce crops like wheat, lentils, canola and cotton, will take the lead in price growth, because they have a better price outlook than other commodities,” report writer Vitor Pistoia advised AAP.
After three consecutive years of “double-digit” progress, the momentum in agricultural land worth will increase will sluggish in 2024, as farm profitability ranges come off document highs.
Last yr farmland costs elevated by 11 per cent on common, whereas it elevated by nearly a 3rd the earlier yr.
The knowledge exhibits the variety of farms being offered continues to drop too, with nationwide gross sales declining 35 per cent in 2023. This various throughout the states with transactions down 43 and 44 per cent in Western Australia and Victoria, however solely six per cent in South Australia.
“Large deals – with sales above the A$10 million threshold – also declined, down 33 per cent year on year and about in line with the decline in all farm sales,” Mr Pistoia mentioned.
The report analysed over 1500 gross sales from 2023 and over 11,000 gross sales from throughout the nation since 2019.
Source: www.perthnow.com.au
