Farmland values on the way up

$8432 median per hectare during 2016

BETTER VALUE: The value of land in the rural city is on the way up according to a report. PHOTO: Marc Bongers

NORTH East farmland values increased by 14.1 per cent in 2016, according to a new report released last week by Rural Bank.

The report features a comprehensive analysis of Australian farmland property values and key national, state and regional trends such as commodity prices, climatic conditions and other sector factors, lending rates and the broader investment environment.

Produced by Rural Bank and Rural Finance’s specialist market insights division Ag Answers, the report is based on real farm sales since 1995 and draws on more than 230,000 transactions, accounting for 278 million hectares of land with a combined value of $132 billion.

The North East saw an eight per cent average growth in farmland prices over the last five years, driven by a larger percentage of high value sales in the municipalities of Towong, Mitchell and Wangaratta.

Though there were low sales volumes in the municipalities of Benalla, Moira and Indigo.
Demand for dairy farms was subdued in 2016, but commodity prices for livestock and wool were favourable, supporting demand for pastoral land.

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