The value of farmland in South-East Queensland has fallen 18 per cent in the past 12 months and it is not expected to rise soon, according to Bendigo Bank Agribusiness Research.
In its latest Australian Farmland Values, Bendigo Bank Agribusiness found that average farm prices had fallen 18 per cent to $13,999 per hectare in the 12 months to the end of June.
The report said Queensland farmland values are likely to remain flat across during the next six months as farmers continued to evaluate seasonal and market conditions.
In South East Queensland a lot of smaller operators looking to sell while large businesses are doing the buying in the hope of increasing their economies of scale.
“Larger grain and cattle operations are in strong position, but horticulture and dairy have struggled with weather and urban sprawl recently,’’ the report said.
“Buyers are being a lot more proactive in knocking on neighbours’ doors to buy direct and get in front of properties being put on the market.
“Succession planning is a big consideration driving appetite, whether building economies of scale to improve financial position or expanding land ownership to split up amongst the next generation.”
The major drivers of farmland values – commodity prices, seasonal conditions and interest rates – remain varied across regions and commodities.
Seasonal conditions still loom as a larger factor impacting buying intentions in the current environment.
Livestock prices continued to surge amidst strong global demand, while grain prices have eased.
Interest rate cuts were seen for the first time since late 2020, providing a small boost to borrowing power, which lifted sentiment, particularly for those looking to purchase neighbouring land.