Research
Australian farmland price outlook 2026: Growth of farmland values expected to ease amid tight on-farm margins
The outlook for Australian farmland values shows stabilisation in 2025 and a shift to moderated growth, with grazing gains, softer arable prices and low single-digit growth.
Australian agricultural land values held firm in 2025, with median prices rising modestly by 0.4% following a pullback the previous year. Three RBA rate cuts helped support market stability, particularly later in the year, while strong livestock prices underpinned gains in grazing land. In contrast, arable land values declined as lower crop prices and high input costs squeezed margins.
Looking ahead, RaboResearch expects the shift to moderated growth to continue. Land values are forecast to rise by around 2% in 2026 under the base case, well below the long-term average. Elevated fertiliser and fuel costs linked to ongoing geopolitical tensions, alongside the prospect of higher interest rates, are expected to constrain margins and dampen sales activity, limiting upside for land prices.