Good news for farmers – farmland is on the rise.
A recent report from the Rural Bank on Australian Farmland Values found that farmland values have been steadily rising across the country, which is heavily the result of a constant annual growth over the past two decades.
The report found that the median price of Australian farmland increased by 7.1% in 2017, meaning there couldn’t be a better time to get invest in some farmland.
But where should you be looking if you want to invest? Read our guide to find out.
Victoria saw a median price rise of 9.9% last year, which is largely attributed to an increase in lamb and wool prices, meaning bigger profits for farmers.
Specific spots in Victoria such as Wimmera and Mallee have seen the most growth, but this also means an increase in demand for land.
Corporate investment saw Western Australia receive a substantial boost in farmland value. Varied farming practices and a healthy dose of reliable rainfall has seen good yields all year round, making it a promising choice for investors.
In terms of specific areas, the central wheat belt has seen the biggest interest in investment.
Tasmania has seen growth in a variety of areas, and farmland is no exception. In fact, Tasmania has seen the highest median price rise across the board at an impressive 19.3%.
Many factors helped contribute to the overall growth. From irrigation investment, low-interest rates and improved access to water, Tasmania is an excellent choice for the budding investor.
South Australia is an area that has not seen the same level of growth as other areas in recent years, but that trend seems to be changing.
Annual growth over the previous 10 years was only a measly 1.9%, but last year this skyrocketed rocketed to 17.1%.
Increased confidence and increase in prices has been attributed to lower prices all around, including lowering interest rates and commodity prices. Farmers have been able to use this to their advantage, and the results speak for themselves.
New South Wales
The south-eastern Australian state has seen consistent growth over the past few years, with medium growth increasing by 8.8% last year.
Different farms have specialised in different products, but Coffs Harbour, where the blueberry industry is booming, saw the most success last year.
Farmland for you
If you’re looking to invest in land, there couldn’t be a better time to invest in farmland. At their current rate though, demand and price are only set to increase, so act now to ensure you get the best deal on farmland possible.
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