Buying a farm and Australia’s farmland market are entering a new phase after years of extraordinary growth. The national median farmland price fell to $9,885 per hectare in the first half of 2025, representing a minor decline of 3.1 per cent year-on-year. This plateau creates opportunities for buyers who understand regional dynamics. The rush of 2020-2023 has cooled, replaced by more measured conditions. This guide examines which states offer the best value for buying farms and acreage in 2026.
Why 2026 is a Turning Point for Buying Farm Land
The farmland market experienced uneven performance throughout 2025. South Australia and New South Wales were the only states to record growth in farm sale prices. Higher interest rates throughout 2024 and early 2025 cooled speculative buying activity. Properties took longer to sell, particularly in marginal areas.
National transactions fell to a record low of 3,104 sales in the first half of 2025, down 11.5 per cent year-on-year. Buyers became more cautious about margins and returns. Migration patterns and remote work continued supporting demand in some regional areas. Infrastructure investment and renewable energy projects began reshaping rural land values in select corridors.
Interest rates are expected to ease through 2025 and into 2026. This anticipated relief may restore some buyer confidence. Properties that were overpriced in 2024 have adjusted downward. The correction creates entry points for well-informed buyers. 2026 opens opportunities where prices have stabilised but infrastructure spending continues rising.
Key Factors Driving Farm Land Value
Commodity prices directly influence what buyers can afford to pay. Strong livestock markets supported grazing land values in 2025. Cropping prices remained lacklustre, weighing on arable land demand. Fertiliser, fuel, and labour costs remain significantly higher than two to three years ago.
Rainfall patterns determine productivity and profitability. Seasonal conditions varied dramatically across states in 2025. Southern regions experienced significant drought whilst northern areas received better rainfall. Water security remains critical for valuations.
Infrastructure projects enhance accessibility and reduce transport costs. Proximity to ports matters greatly for cropping operations. Road improvements lower freight expenses. Energy projects may inflate land values in affected corridors.
Local council zoning affects permitted land uses. Restrictions on clearing or development can limit property potential. Water allocations and extraction licences add substantial value where available.
Population growth in regional hubs supports demand for nearby properties. Lifestyle buyers compete with commercial farmers in accessible regions. This dual demand sustains prices near regional centres.
2025 Recap: Setting the Baseline
Between 2020 and 2023, median land values in Australia grew an astonishing 79 per cent. This unprecedented boom created affordability challenges. Median land prices across Australia declined 6 per cent in 2024, marking the first significant correction.
Grazing farmland saw the largest drop, declining 13 per cent year-on-year in 2024, whilst arable land remained more stable, shrinking just 2.6 per cent. Regional variations were substantial. Some premium areas maintained values whilst marginal regions corrected sharply.
The sharp rise in land prices over the last decade has limited the prospective pool of buyers to those with superior margins and deeper pockets. Consolidation continued as larger operations absorbed neighbouring properties. Generational transfers accelerated as older farmers retired.
The 2025 plateau suggests some previous hotspots may cool further in 2026. Buyers seeking value should examine regions that corrected in 2024-2025. These areas may offer entry opportunities as market conditions normalise.
Best States to Buy Farm Land in 2026
Western Australia
Western Australia has a state median of $6,074 per hectare in the first half of 2025, making it Australia’s most affordable state for broadacre farmland. This represents a decline of 13.3 per cent from the previous period. The Wheatbelt and Great Southern regions offer strong entry-level opportunities. South Australia and Western Australia were the only states to avoid year-on-year price declines in 2024.
WA experienced robust growth earlier in the decade following consecutive good seasons. Rabobank forecasts that farmland values in WA’s Geraldton Port Zone will stay high, driven by the outlook for a good 2025 harvest. However, growth rates are expected to moderate from the double-digit increases of previous years.
The 2026 outlook points to modest price growth with lower competition than eastern states. A larger than usual proportion of sales were recorded within the lower-priced states of South Australia, Western Australia, and the Northern Territory during the first half of 2025. This activity suggests buyers are seeking value in these regions.
Advantages include scale opportunities and infrastructure investment. Water rights frameworks provide clarity for buyers. Port proximity reduces freight costs for grain producers. The state offers genuine large-scale farming opportunities.
Disadvantages centre on remoteness from major population centres. Service access is limited outside key regional towns. Properties distant from ports face higher transport costs. Climate can be challenging in lower rainfall zones.
Tasmania
Tasmania has a median price per hectare of $17,575 in the first half of 2025, representing a decline of 25.3 per cent year-on-year. Despite this correction, Tasmania remains competitive against mainland premium regions. Only 45 properties transacted during this period. Strong lifestyle demand balances against limited supply.
The state attracts buyers seeking cooler climates and reliable rainfall. Dairy farming performs strongly, with Tasmanian dairy farmland showing 14.1 per cent average annual price growth over the last decade. Fertile soils support diverse agricultural enterprises.
The 2026 outlook suggests modest appreciation continuing. Tasmania remains below mainland averages for many comparable regions. Supply constraints limit availability but support values. The state appeals to both lifestyle buyers and serious agriculturalists.
Advantages include cooler climate suitable for temperate crops. Fertile soils produce quality yields. Niche crop potential exists for specialty products. The state offers genuine four-season farming conditions.
Disadvantages involve smaller property parcels limiting scale. Freight costs to mainland markets add expense. Limited service access in remote areas. Competition from lifestyle buyers inflates prices near population centres.
South Australia
South Australia has a state median of $9,214 per hectare in the first half of 2025, offering moderate entry prices. This represents growth of 18.4 per cent year-on-year, making South Australia one of the strongest performing states. Rising interest in the Riverland and Yorke Peninsula regions reflects improved conditions.
The state experienced some of Australia’s best value increases in certain regions during 2025. Irrigated areas along the Murray River system hold particular appeal. The moderate climate supports diverse cropping and livestock operations.
The 2026 outlook shows steady conditions with potential uplift in irrigated regions. Water allocation reliability significantly affects property values. Areas with secure water access command premiums. Dryland farming remains viable in higher rainfall zones.
Advantages include affordable entry points for new buyers. Moderate climate reduces weather extremes. Proximity to Adelaide supports some regional areas. Diversification opportunities exist across cropping types.
Disadvantages centre on water variability in dryland areas. Seasonal conditions can be challenging. Less liquidity exists in smaller regional towns. Marketing options may be limited for some commodities.
Queensland
Regional Queensland showed mixed performance throughout 2025. Queensland has a state median of $9,558 per hectare in the first half of 2025, representing a decline of 3.4 per cent. South Burnett and Darling Downs regions offer value opportunities.
Lacklustre cropping prices will remain a headwind to demand in 2026, particularly in marginal regions. However, the resurgence in livestock markets should support demand for grazing properties where seasonal conditions have been positive.
The 2026 outlook suggests moderate recovery following drought impacts in some regions. High rainfall zones in the southeast maintain strong fundamentals. The state’s strong agribusiness base supports farming operations.
Advantages include high rainfall zones with reliable production. Strong agribusiness infrastructure exists. Diverse commodity options suit various enterprises. Growing season length benefits many crops.
Disadvantages involve regional policy inconsistencies affecting operations. High transport costs to southern markets. Climate variability between seasons. Competition from residential expansion near growth corridors.
New South Wales and Victoria
New South Wales has a state median of $9,815 per hectare in the first half of 2025, representing growth of 1.3 per cent half-on-half. Victoria sits at $13,659 per hectare, down 10.4 per cent from the previous period. These states rank amongst Australia’s more expensive on a per-hectare basis. However, outer regional zones remain viable for buyers seeking established infrastructure.
In Victoria, South and West Gippsland dropped from $31,220 per hectare to $24,747 per hectare, a decline of 20.7 per cent. This correction in previously overheated areas creates opportunities. The Central region fell from $15,117 per hectare to $9,031 per hectare, down 40.3 per cent.
The 2026 outlook indicates stable prices or small declines in overheated corridors. Properties that surged during 2021-2023 may correct further. New England in NSW and Gippsland in Victoria offer relative value compared to premium zones.
Advantages include access to capital city markets. Mature agricultural infrastructure supports operations. Strong service networks exist throughout regions. Higher rainfall generally than inland states.
Disadvantages centre on higher entry prices limiting affordability. Land-use restrictions can constrain operations. Competition from lifestyle buyers inflates prices. Smaller property sizes limit scale economies.
Comparison Table: Farm Land Affordability (2025-2026)
| State | 2025 Trend | 2026 Outlook | Key Regions | Buyer Appeal | Caution |
| WA | Strong affordability, modest decline | Slight rise expected | Wheatbelt, Great Southern | Scale opportunities, value | Distance from services |
| TAS | Stable, limited supply | Moderate rise | Midlands, North-West | Lifestyle appeal, fertility | Supply constraints |
| SA | Growth recorded | Continued stability | Riverland, Yorke Peninsula | Affordability, irrigation | Water variability |
| QLD | Mixed, regional variation | Recovery potential | South Burnett, Lockyer | Rainfall reliability, scale | Transport costs |
| NSW/VIC | High prices, corrections in some regions | Flat to slight decline | New England, Gippsland | Infrastructure access | Price ceilings |
What to Watch in 2026 If you’re buying a farm or land
Climate patterns will significantly influence property values throughout 2026. La Niña or El Niño development affects rainfall distribution. Water allocations respond to seasonal conditions. Buyers should monitor Bureau of Meteorology forecasts closely.
Regional migration patterns may shift if interest rates stabilise. Lower borrowing costs could restore buyer confidence. Remote work arrangements continue supporting some rural areas. Population movements into regional centres support nearby property values.
Farm succession and generational transfers will accelerate. Ageing farmers seek retirement pathways. Family succession arrangements may increase property availability. Estate sales could provide opportunities for patient buyers.
Renewable energy projects are reshaping land values in specific corridors. Solar and wind farm developments compete for suitable land. Carbon farming arrangements offer alternative income streams. These projects may inflate land prices in affected areas.
Government incentives for rural development could emerge. Infrastructure spending may focus on regional connectivity. Agricultural support programmes might influence buyer decisions. Policy changes around water or land use require monitoring.
Summary and Next Steps
The farmland market in 2026 presents more balanced buying conditions than recent years. The dramatic growth of 2020-2023 has given way to stability. Rabobank’s base case for 2025 predicts a return to modest, single-digit growth following last year’s decline.
Western Australia, Tasmania, and South Australia lead in value propositions. Each offers distinct advantages depending on buyer objectives. Queensland holds recovery potential following recent challenges. New South Wales and Victoria provide established infrastructure despite higher prices.
Focus on infrastructure quality and water security rather than sticker price alone. Properties with reliable water access command justified premiums. Proximity to services and markets affects long-term viability. Transport costs significantly impact margins on remote properties.
Consider both commercial fundamentals and lifestyle factors. Lifestyle properties near regional centres hold value better during downturns. Commercial-scale operations require strong margins to justify current prices. Match property type to your experience level and available capital.
The correction of 2024-2025 creates entry opportunities for prepared buyers. Markets that surged excessively may offer better value after adjustment. Patient buyers who conduct thorough due diligence will find opportunities. 2026 favours those who understand regional dynamics over those chasing national trends.
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