Average Aussie farm now worth more than $5 million

New research shows an average Aussie farm is now worth more than $5m, even though the market is cooling.

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The average Australian farm is now a multi-million dollar asset, with new data revealing the typical holding is worth well over $5m at current prices.

Fresh figures from Bendigo Bank Agribusiness show the national median farmland price has hit a record $10,516 per hectare, meaning an average 500ha farm is now worth about $5.25m. For larger, 1000ha operations, that jumps to more than $10m — and far higher in premium regions.

Cattle on a farm near Rockhampton in Queensland. Photo: Torsten Blackwood.

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The figures, released in the bank’s 2026 Australian Farmland Values Report, mark a 2.8 per cent annual increase and extend a 12-year streak of rising land values across the country, but after years of rapid growth the market is now cooling.

“A subdued start to the year gave way to a more confident market in the second half driven by improved seasonal conditions, three RBA cash rate cuts, and strong livestock prices,” Bendigo Bank Agribusiness senior manager industry insights Eliza Redfern said.

“However, widespread, uniform growth has fallen, and buyers are now more discerning, prioritising asset quality, water security, and long-term returns.”

Aerial view over farmland and bushland in Mareeba. Photo: Tourism Tropical North Queensland.

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Separate research from Rabobank reinforces the slowdown, with the agribusiness lender forecasting only modest growth ahead.

Its latest Australian Farmland Price Outlook expects national land values to rise by about two per cent in 2026, followed by subdued growth of just 0.4 per cent in 2025 — a sharp drop from the average annual gains of roughly 11 per cent over the past decade.

Report author Paul Joules said the market had entered a new phase.

“Our base case forecast expects Australian agricultural land values to continue rising in 2026, with the median price per hectare projected to increase by around two per cent year-on-year,” he said.

“The expectation is for similarly moderate growth in land values from 2026 to 2031 with the market having firmly entered a weaker growth cycle.”

The cost of a typical farm in Australia is now more than $5 million.

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A total of 6.3m hectares of land changed hands last year, with transactions worth $14.3 billion — but volumes were down 4.6 per cent, signalling softer demand.

South Australia led the country with prices up more than 20 per cent, while Queensland and New South Wales recorded more modest gains of 5.8 per cent and 4.5 per cent respectively.

Western Australia rose 6.7 per cent as buyers focused on larger-scale assets.

Elsewhere, Victoria slipped 0.4 per cent amid dry conditions and cautious buying, while Tasmania recorded a sharp 20.6 per cent drop, reflecting the volatility of a tightly held market with limited stock.

Even within states, the gap between average and premium land is widening.

Degraded sugarcane farmland south of Bundaberg is being turned into a macadamia orchard with more than 800,000 trees spanning more than eight kilometres.

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In Queensland, farmland in the south-east is now fetching a median $15,682 per hectare — roughly 50 per cent above the state average — while Victoria’s Gippsland region is more than double its state median.

Rabobank said rising input costs — particularly fertiliser and diesel linked to the Iran war — along with the prospect of further interest rate hikes, were epxected to weigh on farm profitability and limit future price growth.

Looking ahead, the report suggests growth will continue to level off.

“A dry seasonal outlook and higher operational costs are putting pressure on margins,” Ms Redfern said.

“With the added prospect of rising interest rates impacting the cost of borrowing, we expect to see continued buyer caution.”