Australian Farmland Values 2020 | About Rural Bank

Rural Bank is a division of and Adelaide Bank Limited and provides exceptional fi nancial services, knowledge and leadership for Australian farmers to grow.

About the research

The Australian Farmland Values report is based on actual farm sales using data collected by the offi cial government agency in each state and territory, which is then compiled by PriceFinder. The Australian Farmland Values report is a guide to market trends of commercial farming property. To that end, where possible, transactions between family members or where one party has compulsory powers are excluded from the analysis. Further, small farms are also excluded to limit the impact of ‘lifestyle farming’ on the results. As property settlement periods vary, some 2019 sales will not be captured in this report at the time of publication. The median price for the most recent year is preliminary and will be revised at least annually. The values used in this report are based on the total sale price and therefore include the value of capital improvements. The value of water entitlements attached to a land title and therefore sold with the property will be refl ected in the sale price of the land. If water entitlements are sold separately from the land, this value will not be captured in the sale price. Median prices in the report are only a guide to market activity. They are not a valuation. Median is used rather than mean as the median is not as readily distorted by unusually high or low prices. However, the median does have limitations. The mix of property sold in a given year can cause the median price to move up or down in a way that is unrelated to a move in value. For example, a higher proportion of lower-value sales can result in a lower median and vice-versa. In areas where there have been very few sales, this effect can be especially pronounced and so in these cases the median should be used with caution and may not be indicative of an actual change in farmland value. In order to track median price per hectare growth over a range of time periods the report uses compound annual growth rate (CAGR). Compound annual growth rate is a geometric mean that accounts for compound growth, providing a more accurate measure of an investments return compared to a simple arithmetic mean. Farmland sales volume is reported as the number of transactions. Farms can be sold as single or multiple lots, which obscures the view of the number of farms sold, particularly in cases where one farm is sold as multiple lots to multiple buyers. Accordingly, the number of ‘transactions’ should not be interpreted as the number of farms sold and should only be used as a guide to market activity. This report is not intended for use as a farm valuation tool. A qualifi ed professional is required to assess the value of a property. For PriceFinder terms and conditions visit: www.pricefi nder.com.au/terms-conditions/ Understanding the value of farmland is important to everyone in agribusiness, especially ’s farmers. The Australian Farmland Values report tells the story of national and regional farmland performance over the past 25 years.

This report is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). The information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Rural Bank, a Division of Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL/ Australian Credit Licence 237879, makes no representation as to or accepts any responsibility for the accuracy or completeness of information contained in this report. Any opinions, estimates and projections in this report do not necessarily refl ect the opinions of Rural Bank and are subject to change without notice. Rural Bank has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion, forecast or estimate set forth therein, changes or subsequently becomes inaccurate. This report is provided for informational purposes only. The information contained in this report does not take into account your personal circumstances and should not be relied upon without consulting your legal, fi nancial, tax or other appropriate professional. © Copyright Bendigo and Adelaide Bank Ltd ABN 11 068 049 178 (1452805 –1456138) (04/20) Foreword

Agriculture is volatile, or so the mythology goes. You only hear Farmers are also holding on to their land, with year-on-year about agriculture when it’s booming or facing another challenge transaction volumes falling by 13.2 per cent. What is driving this? or crisis. Are lower sales volumes driving up price, or are farmers simply optimistic about the future? Rural Bank’s Australian Farmland Values 2020 report turns this myth on its head, particularly when you consider our world There is certainly no shortage of buyers, happy to invest. is grappling with the COVID-19 pandemic, a challenge with Corporates have continued to strongly enter the market, the potential to deliver the greatest uncertainty or unknown particularly in New South Wales and Queensland. economic impact since World War II. As much of the eastern half of Australia emerges from dry Is agriculture immune or conditioned? History would tell you it is. conditions and drought, will land continue to be held on to for longer, and what are the implications for traditional farming When you remove the noise, agriculture is stable, consistent and businesses? an under-recognised source of economic growth. If you know what you are doing and are prepared to see through short-term These are all important questions, requiring discussion. vagaries and variations, there are rewards to be harvested. As always, Rural Bank is looking to contribute evidence and On average, Australian farmland has delivered compound annual insight to this conversation, advocating for the agricultural growth of 7.5 per cent over 20 years. industry. It’s a remarkable result and it highlights that investing in farmland In these unprecedented times, the evidence suggests that if you over the long-term will deliver, through good times and bad. look to agriculture and farmland, it continues to perform well over the long-term – whatever the circumstances. We also know that farmland value is only one measure. It certainly does not automatically translate to profi tability, or growth. Alexandra Gartmann CEO, Rural Bank It’s the base asset for Australia’s farming businesses, with unique characteristics, strengths and weaknesses. But in every case, every parcel of land requires smart, capable farmers to turn a profi t. Land with consistent access to water has continued to perform far better than land without. Climate risk and reliable rainfall continues to drive investment.

4 Executive Summary

2019 year-on-year Farmland values have been resilient following several years 2019 year-on-year transaction median price growth of challenging seasonal conditions. We expect growth in the volume growth value of Australian farmland to continue over the long-term as ongoing improvements in Australian agricultural productivity NSW 17.2% -19.8% and profi tability fuel strong demand for agricultural assets. While factors such as strong commodity prices, a low interest QLD -0.8% -7.8% rate environment and tight supply of land support strong demand for farmland in the short-term, this will be tempered SA 18.4% -8.3% by disruptions to global economies. We expect farmland values to continue to grow but at a reduced rate compared TAS 11.1% -5.8% to the growth seen in the past six years. VIC 12.1% -12.9% Across Australia the number of transactions declined 13.2 per cent year-on-year to 7,164. This marks the lowest transaction volume for the analysed period (1995–2019). WA 28.2% -4.6% The number of transactions equates to a total of 6.5 million hectares of land with a combined value of $8.7 billion. NT -53.9% -36.2% Farmland values hold particular signifi cance when examined National 13.5% -13.2% at a localised level. In 2020 Rural Bank has researched trends in 29 regions across the country. The Australian Farmland Values 2020 report draws on more than 262,000 transactions, accounting for 303.9 million hectares of land with a combined value of $159 billion over 25 years.

Australia – historic performance

$6,000 16,000

14,000 $5,000 12,000 $4,000 10,000

$3,000 8,000

6,000 $2,000 4,000 $1,000 2,000

0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

5 $7,587 12.1% 166,215 7.1% Compound annual growth Median price per hectare 2019 median price growth Hectares of land traded over 20 years

Map shows median price movement in 2019.

North West 31.9%

Northern 16.1%

South West Gippsland 16.7% -5.9%

Victoria Victoria

Victoria – historic performance

$8,000 3,000

$7,000 2,500 $6,000 2,000 $5,000

$4,000 1,500

$3,000 1,000 $2,000 500 $1,000

0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

The median price per hectare of farmland in Victoria increased by 12.1 per cent in 2019. This is now the fourth consecutive year From the fi eld of growth, bringing the 10-year compound annual growth rate to 6.8 per cent. Competition remained high as there were a smaller “Victoria had its fourth consecutive year of growth in number of transactions in 2019. Whilst a favourable cropping median price per hectare in 2019. Contributing to the season and stronger livestock prices gave some confi dence increase in median was a decrease in the number of to family farms leading to healthier balance sheets allowing for new land purchases. Should higher livestock prices remain, transactions, whilst strong demand remained. North and favourable cropping conditions persist this is expected to West and Gippsland regions experienced the greatest continue. declines in transaction volume. Geographical risk The total value of Victorian farmland traded in 2019 was was a factor that was front of mind, as an increase approximately $1.05 billion, a year-on-year decrease of 4.2 per in the need for water security and diversifi cation cent. Total hectares traded fell 16.2 per cent in 2019, however an of location increased interest in irrigated and high increase in the proportion of higher value transactions, especially rainfall municipalities. Low interest rates have led to those above $12,500 per hectare led to growth in the median a higher number of properties purchased rather than price per hectare. leased, these properties were predominately off- North West Victoria saw the largest year-on-year increase in market transactions between lessee and landowner. median price per hectare 31.9 per cent higher. South West and Considering the current economic environment Northern Victoria both continued to see an increase in growth purchasing rather than leasing is expected to continue.” with the median price per hectare 16.7 per cent and 16.1 per cent higher respectively. Whilst Gippsland, following a persistent Jonathon Hewitt, Rural Bank, Eastern Australia. drought saw a decrease of 5.9 per cent year-on-year. Land close to and in higher rainfall regions was in high demand as diversifying geographical risk was an attraction for buyers. of listings in 2019. However, lower interest rates increased buyer There was a 12.9 per cent decrease in the volume of confi dence leading to an increase in the amount of properties transactions, to 1,464, this kept prices fi rm and heightened bought rather than leased. A trend likely to continue in the competition between buyers. Dry conditions reduced the number coming years.

7 Victoria – transactions by price range

400

350 2019

300 2018

250

200

150 Number of transactions 100

50

0 $0 – 2,500/ha $2,500 – 5,000/ha $5,000 – 7,500/ha $7,500 –10,000/ha $10,000 –12,500/ha $12,500/ha+

In 2019, there was a larger proportion of higher valued able to unlock equity to chase additional land hence an increase transactions contributing to the increase in the growth of median in higher value transactions. price per hectare across the state. The number of transactions This was especially evident in the South West region of the greater than $12,500/ha was 7.8 per cent higher than 2018 and state with increases in transaction volume of 61 per cent and the only price range where transaction volume increased. 38 per cent in the $12,000–15,000/ha range and the greater The lower the price range the larger the decrease in volume of than $15,000/ha range. The South West, in addition to local transactions, following the trend seen in recent years of more purchases, also saw an increase in the proportion of investors high value transactions and fewer low value transactions. In 2019 from the city often out competing local buyers and pushing land farmers with healthy balance sheets and large land holdings were values higher.

Performance by land size

Median $/ha No. of transactions Parcel size (ha) 2019 % change 10yr CAGR Decile 2019 YoY +/-

30–50 $10,499 3.4% 3.5% 10.0 450 -79

50–100 $8,167 15.5% 4.3% 10.0 508 -58

100–150 $5,393 9.5% 6.2% 10.0 234 -24

150+ $3,491 27.3% 8.6% 10.0 272 -56

Overall $7,587 12.1% 6.8% 10.0 1,464 -217

Growth in median price per hectare occurred in all parcel sizes, with The decline led to an increase in the competition for farmland parcels greater than 150ha experiencing the highest growth of in 2019, resulting in a 12.1 per cent increase to the median 27.3 per cent. Small to medium sized parcels in the 50–100ha range price per hectare for the state. An increase in cross industry were also signifi cantly higher 15.5 per cent greater year-on-year. competition also aided the median price per hectare, as high rainfall areas traditionally used for cropping were purchased with The transactions mix was different compared to 2018 as there the intention of running livestock. was a decline for all parcel sizes; however, the percentage of total transactions for each range remained relatively unchanged.

8

VIC Gippsland

Gippsland – historic performance

$14,000 700

$12,000 600

$10,000 500

$8,000 400 $11,002 $6,000 300 $4,000 200

Median price per hectare $2,000 100 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

The median price per hectare in Gippsland decreased by 5.9 per cent in 2019 to $11,002 per hectare. The decrease in 2019 follows two consecutive years of growth of 15.4 and 15.2 per cent. There was a greater proportion of larger parcels of land sold in 2019, these -5.9% characteristically sell for a lower value per hectare, this was due to a supply shortage in small to medium sized parcels as a result of rural property being held on to. This changed the overall 2019 median price growth transaction mix and led to a decline in median price per hectare for the region.

From the fi eld

“Gippsland experienced a supply shortage through 2019 with prolonged drought conditions impacting availability. Rural property was tightly held, and lower supply resulted in strong demand and fi rmer prices paid for larger landholdings. Despite a 5.9 per cent decline in the median price across Gippsland, the key irrigation areas 18,558 of the Latrobe and Wellington shires both experienced an increase in property prices in response to water security offered by some of these land parcels.” Hectares of land traded Josie Zilm, Rural Bank, Gippsland

East Gippsland and Bass Coast had the largest declines in median price per hectare both falling 7.5 per cent and 7.4 per cent respectively. Whilst Latrobe and Wellington recorded the highest growth in median price per hectare due to water security offered with some of these properties. The volume of transactions dropped in 2019 by 25.7 per cent to 243, drought was a key factor 6.3% leading to a lower number of listings in the area. Compound annual growth over 20 years

10 Gippsland – transactions by price range

70 2019 60 2018

50

40

30

Number of transactions 20

10

0 $0 – 4,000/ha $4,000 – 8,000/ha $8,000 –12,000/ha $12,000 –16,000/ha $16,000 – 20,000/ha $20,000/ha+

Transaction volume decreased across all price per hectare ranges in 2019. The most signifi cant drop in volume was for parcels priced between $8,000–12,000/ha, 35 per cent lower than 2018, this equates to 21 fewer transactions. This was particularly evident in the Baw Baw, South Gippsland and Wellington municipalities. Whilst, the volume of transactions priced between $12,000–16,000/ha and greater than $20,000/ha were 28.9 per cent and 34.5 per cent lower respectively. An increase in the total share of transaction volume in East Gippsland, which attracts a lower price per hectare compared to other municipalities, contributed to the decline in median price per hectare for the Gippsland region in 2019.

Performance by land size

Median $/ha No. of transactions Parcel size (ha) 2019 % change 10yr CAGR Decile 2019 YoY +/-

30–50 $13,274 -8.2% 4.4% 9.6 98 -54

50–70 $9,729 -17.9% 1.8% 8.3 64 -14

70–90 $9,944 25.3% 5.0% 9.6 25 -11

90+ $6,906 39.1% 11.8% 10.0 56 -5

Overall $11,002 -5.9% 5.5% 9.6 243 -84

Median price per hectare declined for smaller parcels of land in 2019. Whilst there was an increase to the median price per hectare for the larger parcels in the range of 70–90ha and greater than 90ha. Historically parcels greater than 90ha have returned the highest compound annual growth rate. An increase in the percentage of transactions that were lower in value, particularly in the greater than 90ha range, was a pertinent factor in the median price per hectare decreasing in 2019. There was an increase of 2.5 per cent and 4.4 per cent to the share of total transactions sized 50–70ha and greater than 90ha respectively.

11 VIC North West

North West – historic performance

$3,500 300

$3,000 250

$2,500 200 $2,000 150 $1,500 $3,092 100 $1,000

50 Median price per hectare $500 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

The median price per hectare of farmland in North West Victoria increased by 31.9 per cent in 2019 to $3,092 per hectare. This follows a slight decline of 1.9 per cent in 2018, however 31.9% there has been strong growth in recent years with the median price per hectare increasing 85 per cent over the past fi ve years. Family farms continue to be the main buyers of property as a favourable cropping season and strong livestock prices gave confi dence to large family 2019 median price growth farms, leading to new land purchases.

From the fi eld

“Demand for grazing and cropping land in the southern Wimmera and Swan Hill area was high in 2019. Family farms remained the major buyers in both the Wimmera and Mallee. There were more off market transactions as neighbouring farmers came to agreeance on price without going to market. Low interest rates 34,244 and high lease costs are contributing to an increase preference of buying land over leasing. Demand is set to remain high in 2020 with anecdotally less supply to the Hectares of land traded market and the expectation of more private sales.”

Greg Kuchel, Rural Bank, Swan Hill.

In 2019, the municipalities of Swan Hill and Hindmarsh recorded strong growth in median price per hectare. In contrast, Yarriambiack recorded a decline. Transaction volume decreased substantially in 2019, down 21 per cent to 147 transactions, 7.7% persistent drought particularly in the North West Mallee contributed to the decline. Compound annual growth over 20 years

12 North West – transactions by price range

60

50 2019 2018 40

30

20 Number of transactions

10

0 $0 – 1,000/ha $1,000 – 2,000/ha $2,000 – 3,000/ha $3,000 – 4,000/ha $4,000 – 5,000/ha $5,000/ha+

In 2019, there were fewer low value transactions, which resulted in an increase to the median price per hectare. In contrast to 2018, there was a signifi cant increase in the volume of transactions for land priced between $3,000–4,000/ha and greater than $5,000/ha up 40 per cent and 16 per cent respectively. A decrease to the total share of transactions in Mildura, historically a lower value municipality, was a factor that led to a higher median price per hectare. Whilst increased transactions of a higher value in the Hindmarsh and Swan Hill municipalities also contributed to the year-on-year increase in median price per hectare. Demand remains above supply with low interest rates and high leasing costs prompting farmers to buy land rather than lease, where possible. The municipalities of Mildura and Horsham reported a decline in transaction volume in 2019. In contrast, volume increased in Swan Hill.

Performance by land size

Median $/ha No. of transactions Parcel size (ha) 2019 % change 10yr CAGR Decile 2019 YoY +/-

30–100 $3,413 -7.4% 1.8% 6.7 36 -4

100–200 $3,089 26.3% 5.3% 10.0 43 -14

200–300 $3,254 48.3% 9.1% 10.0 37 -12

300+ $1,710 22.5% 7.6% 10.0 31 -9

Overall $3,092 31.9% 8.9% 10.0 147 -39

In 2019, smaller parcel sizes of 30–100ha made up a higher percentage of total transactions. However, the mix of sizes remained relatively consistent with previous years despite a decline in activity across all parcel sizes. Median price per hectare for 200–300ha range increased by 48.3 per cent. In contrast, parcels 30–100ha declined by 7.4 per cent. The 200–300ha range returned the highest ten-year compound annual growth rate.

13 VIC Northern

Northern – historic performance

$8,000 1,200

$7,000 1,000 $6,000 800 $5,000

$4,000 600

$3,000 $7,331 400 $2,000 200 Median price per hectare $1,000 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

The median price per hectare in Northern Victoria increased by 16.1 per cent in 2019 to $7,331. This is the eighth consecutive year of growth for the region as demand for properties 16.1% remains high and supply remains tight. Median price per hectare increased notably in Bendigo and Loddon. Whilst the municipalities of 2019 median price growth Wodonga and Mansfi eld recorded a decline.

From the fi eld

“Cropping land was in high demand in 2019, particularly in the north of the region around Yarrawonga. In the high rainfall grazing regions interest from farmers looking to diversify their geographic risk led to an increase in demand. Private off market transactions between neighbouring properties were popular across the region, with 57,538 sellers often naming their price. Corporate buying activity centred around Katunga where irrigated properties with deep lead bore water were sought after.”

Hectares of land traded Kate Hemphill, Rural Bank, Shepparton.

In 2019, the volume of transactions declined 3.6 per cent to 568. This follows a 15.6 per cent decline in 2018 and is the lowest number of transactions in the analysed period. However, equity from sales of allocated water in the Campaspe shire and Katunga was a factor in the increase in land purchases closer to the . Indigo and Mansfi eld both recording an increase to the number of transactions in 2019. 6.9% Compound annual growth over 20 years

14 Northern – transactions by price range

200 2019

2018

150

100 Number of transactions 50

0 $0 – 2,000/ha $2,000 – 4,000/ha $4,000 – 6,000/ha $6,000 – 8,000/ha $8,000 –10,000/ha $10,000/ha+

Transaction volume increased signifi cantly at the top end of the market in 2019. The volume of transactions between $8,000–10,000/ha and above $10,000/ha increased 26.2 per cent and 14.4 per cent respectively. Transaction volume in the lower median price per hectare ranges fell by the amount that the top end ranges gained, $0–2,000/ha and $2,000–4,000/ha were 14.3 per cent and 27.9 per cent lower in 2019. Fewer lower value sales and increased high value sales contributed to the median price per hectare increasing. Decreases in the total share of transaction in the Gannawarra and Loddon municipalities contributed signifi cantly to a decrease in the number of transactions priced between $2,000–4,000/ha. A lower amount of lower value transactions was a key driver of a higher median price per hectare in 2019 for the Northern region. The municipalities of Gannawarra, Mitchell, Mount Alexander, Strathbogie and Wangaratta reported a decline of above 30 per cent to the volume of transactions in 2019.

Performance by land size

Median $/ha No. of transactions Parcel size (ha) 2019 % change 10yr CAGR Decile 2019 YoY +/-

30–50 $9,884 3.5% 5.2% 10.0 202 5

50–100 $7,513 25.1% 6.4% 10.0 196 -16

100–150 $4,881 9.2% 7.7% 10.0 93 -9

150+ $3,523 8.5% 9.3% 10.0 77 -1

Overall $7,331 16.1% 7.0% 10.0 568 -21

The transaction mix remained relatively similar to previous years with fewer transactions in the 50–100ha and 100–150ha parcel sizes, 7.5 per cent and 8.8 per cent lower. In contrast 30–50ha parcels increased 2.5 per cent compared to 2018. Median price per hectare growth was greatest in the 50–100ha range increasing 25.1 per cent. Larger parcels greater than 150ha recorded the highest compound annual growth rate over the past ten years.

15 VIC South West

South West – historic performance

$10,000 900 $9,000 800 $8,000 700 $7,000 600 $6,000 500 $5,000 400 $4,000 300 $8,649 $3,000 $2,000 200 Median price per hectare $1,000 100 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Median price $/ha (LHS) Number of transactions (RHS)

The median price per hectare of farmland in South West Victoria increased by 16.7 per cent in 2019 to $8,649 per hectare. This follows an increase of 13.3 per cent in 2018, an increase in the number of investors from the city often outcompeting local buyers pushed land values 16.7% higher.

2019 median price growth Median price per hectare recorded strong growth in the municipalities of West Wimmera and Glenelg. In contrast, Hepburn recorded a decline. Areas of high rainfall were sought after especially from farmers outside of the region looking to purchase cropping land with the intention of running livestock.

From the fi eld

“Demand for land in South West Victoria remained high in 2019. Corporate investors competed with local buyers resulting in land price growth. Traditional 55,876 cropping land sold to graziers from outside the region looking to take advantage of the region’s high rainfall. Buying power was aided by low interest rates and solid Hectares of land traded commodity prices, this trend is expected to continue in 2020.”

John King, Rural Bank, Colac.

Transaction volume was lower in 2019, decreasing by 12.6 per cent to 506. This was driven by high commodity prices for both livestock and grain, resulting in land becoming tightly held as opposed to be offered up for sale. This trend is expected to continue in 2020, further 7.8% strengthening buyers balance sheets and aiding competition for available land. Compound annual growth over 20 years

16 South West – transactions by price range

200 2019

2018

150

100 Number of transactions 50

0 $0 – 3,000/ha $3,000 – 6,000/ha $6,000 – 9,000/ha $9,000 – 12,000/ha $12,000 –15,000/ha $15,000/ha+

The transaction mix by price range changed most at the top end of the market in 2019. There was a notable increase of 61.4 per cent in the volume of transactions between $12,000–$15,000/ha and an increase of 38 per cent in the greater than $15,000/ha range. The increase in high value transactions was a key driver of median price per hectare growth in 2019. At municipality level, a 55 per cent increase to the number of transactions in Corangamite, a high value municipality, contributed to the 16.7 per cent increase to the median price per hectare for the region. In contrast, transaction volume declined signifi cantly in Ballarat and Moorabool 42.9 per cent and 35.3 per cent lower.

Performance by land size

Median $/ha No. of transactions Parcel size (ha) 2019 % change 10yr CAGR Decile 2019 YoY +/-

30–50 $10,384 18.1% 2.0% 10.0 142 -25

50–100 $9,275 17.4% 6.5% 10.0 184 -18

100–150 $7,108 3.3% 7.8% 10.0 88 -7

150+ $5,672 34.9% 7.7% 10.0 92 -23

Overall $8,649 16.7% 7.2% 10.0 506 -73

Median price per hectare increased for every parcel size accompanied by a reduced number of transactions across all sizes. Parcels greater than 150ha recorded the highest growth, up by 34.9 per cent, whilst the 100–150ha range recorded modest growth of 3.3 per cent following a 33 per cent increase in 2018. Historically larger parcel sizes have recorded the highest compound annual growth rate.

17 VIC Farmland sales by municipality

Median $/ha Number of transactions Municipality 2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/- Gippsland Bass Coast $15,904 5.6% 1.9% 6.4% 12 -6 Baw Baw $18,650 6.5% 4.6% 5.9% 31 -16 Cardinia $19,242 -0.2% -0.3% 5.4% 11 -3 East Gippsland $4,898 3.0% 5.0% 6.3% 57 -1 Latrobe $14,832 12.9% 2.6% 8.9% 12 -9 South Gippsland $14,431 5.3% 3.8% 6.5% 62 -18 Wellington $10,421 3.6% 7.4% 6.9% 58 -31 Gippsland $11,002 3.1% 5.5% 6.3% 243 -84 North West Buloke $2,471 13.4% 7.5% 6.6% 35 -7 Hindmarsh $3,632 11.5% 11.4% 8.5% 29 1 Horsham $6,150 13.7% 15.0% 6.7% 21 -11 Mildura $1,417 6.0% 4.9% 7.6% 20 -12 Swan Hill $3,287 21.4% 10.2% 11.9% 21 5 Yarriambiack $3,413 9.3% 6.2% 6.1% 21 -7 North West $3,092 12.2% 8.9% 7.6% 147 -39 Northern Alpine $12,812 16.6% 9.5% 7.5% 14 0 Benalla $8,022 7.4% 7.8% 7.6% 34 -7 Bendigo $8,431 15.5% 9.4% 8.8% 30 1 Campaspe $5,448 5.5% 5.1% 5.2% 68 3 Gannawarra $3,108 7.4% 6.0% 3.0% 26 -14 Indigo $9,681 8.1% 5.0% 8.2% 31 12 Loddon $3,637 11.4% 6.4% 5.4% 36 -9 Mansfield $10,508 7.0% 4.2% 7.3% 25 2 Mitchell $9,652 12.3% 8.9% 7.3% 19 -14 Moira $7,371 6.5% 5.6% 3.7% 67 -10 Mount Alexander $7,403 -0.2% 2.1% 10.2% 14 -13 Murindindi $8,852 9.9% 7.4% 7.6% 32 6 Shepparton $7,756 8.5% 4.9% 4.5% 62 2 Strathbogie $6,138 7.8% 3.2% 6.3% 46 -21 Towong $6,706 4.7% 11.0% 10.2% 25 -4 Wangaratta $8,388 10.4% 7.4% 6.9% 34 -23 Wodonga $8,945 0.5% 5.6% 4.1% 5 1 Northern $7,331 9.1% 7.0% 6.9% 568 -21

18 Median $/ha Number of transactions Municipality 2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/- South West Ararat $6,384 8.4% 5.6% 7.4% 26 -10 Ballarat $13,359 10.2% 6.0% 9.2% 4 -3 Central Goldfields $6,101 16.1% 17.5% 9.3% 7 -1 Colac - Otway $11,013 10.2% 5.0% 6.0% 38 -15 Corangamite $10,749 7.7% 6.4% 7.3% 93 33 Glenelg $9,670 13.1% 6.1% 8.0% 50 3 Golden Plains $9,899 16.5% 6.7% 9.3% 27 -6 Hepburn $8,655 5.8% 4.1% 6.1% 14 4 Macedon Ranges $15,659 25.2% 7.2% 7.3% 12 2 Moorabool $11,223 5.9% 5.9% 5.8% 11 -6 Moyne $10,440 7.1% 2.3% 7.6% 82 17 Northern Grampians $3,306 9.1% 5.8% 7.3% 34 -3 Pyrenees $6,212 5.9% 6.9% 7.9% 31 -7 South Grampians $5,703 7.1% 5.0% 6.8% 36 -13 Surf Coast $8,846 6.5% 0.8% 6.1% 7 1 West Wimmera $5,189 18.5% 8.1% 8.3% 34 -10 South West $8,649 12.1% 7.2% 7.8% 506 -73 Victoria $7,587 9.1% 6.8% 7.1% 1,464 -217

CAGR: Compound Annual Growth Rate Price information with a small volume of transactions should be used with caution. The median price for municipalities with less than four transactions in 2019 is not reported. *Municipalities with no transactions in 2019 have compound annual growth rate for fi ve, ten and twenty years presented using the 2018 median.

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