THE median price per hectare of arable cropping land across Australia increased by 29 per cent last year - the third consecutive year of growth near 30pc.
Rabobank's Australian Farmland Price Outlook, released last week, showed arable land and dairy land prices were up 29pc year-on-year and grazing land was up 26pc.
Cropping land averaged $7650 per hectare and grazing land averaged $9500.
The percentage of sales above $10 million was also up by 7pc for cropping land to 11pc of total national sales and increased 9pc for grazing land to 13pc of total transactions.
Rabobank agriculture analyst Vitor Pistoia said the chief underlying conditions in the national market were high commodity prices and good weather for most of the country.
He said this was set to again fuel "double digit" percentage growth in prices for the year ahead.
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Agricultural land prices across the country had soared again in 2022, with the "macro settings" favourable for land purchases and farming profits.
"Prices for most major commodities reached record highs, widespread rainfall supported agricultural yields - which also surpassed historical records in some regions - and interest rates were at historical lows for almost half the year," Mr Pistoia said.
"While a decline in agricultural land prices is not forecast, we are cautioning that - after the estimated double digit percentage price increase in 2023, a significant slowdown in the pace of price growth - which had been massive in recent years - is expected from 2024 and potentially through to 2028."
Mr Pistoia said farmland sale prices in early 2023 were still setting new records.
But he warned some factors that may dampen demand and price growth in the medium-term included potential hikes in interest rates and the expected onset of El Nino delivering drier weather for many parts of Australia.
"This may hamper agricultural yields and will be impacting farmers' appetite for buying land," he said.
"For now, farmers' appetite for property purchase remains strong.
"Recent Rabobank research - conducted in quarter one of 2023 - shows 7pc of Australian farmers intend to buy land in the next 12 months."
