Dubbo reaps ag growth amid record farm prices

AS THE state’s agriculture industry revels in a record-breaking year for median farmland prices, the Dubbo Regional local government area has enjoyed a 12.4 per cent increase year on year to a median of $4,433/ha in 2021.

According to Rural Bank General Manager Sales Partnerships and Marketing Simon Dundon, stronger agricultural commodity prices, coupled with a second consecutive year of favourable seasonable conditions in most areas, improved cashflows and strengthened balance sheets.

“With support from record low interest rates and confidence in the long-term outlook for the agricultural sector all combining to see a surge in the buying power of Australian farmers,” Mr Dundon said.

“This is the eight consecutive year that the national median price per hectare of Australian farmland has increased, in which time it has risen by 123 per cent – driving the median price per hectare to $7,087, an increase of 20 per cent in 2021 alone and lifting the 20-year compound annual growth rate (CAGR) to 8.4 per cent. Tasmania recorded the highest median price per hectare at $14,730.”

The Rural Bank Australian Farmland Values report has tracked every farmland sale annually for almost 30 years.

The report revealed a growth in Australian farmland values throughout 2021, with new record prices set thanks to a mix of favourable variables combining to drive the surge in demand.

Member for Dubbo and Agriculture Minister Dugald Saunders said the future looked bright for his electorate’s agricultural industry.

“This is a significant increase for the Dubbo region which has been driven by favourable seasonal conditions, increased profitability and improving rural confidence,” Mr Saunders said.

“The future looks bright for Dubbo and its local primary producers with continued growth and production forecast for 2022.”

Rural Bank Eastern Australia’s Andrew Smith said the growth came off the back of a strong rise in the volume of transactions and land traded in the state.

“This growth was driven by supportive seasonal conditions, good commodity prices, and plenty of motivated buyers. Many regions of New South Wales saw outside interest in farmland as city-dwellers looked to move regionally,” Mr Smith said.

“Moving forward into the rest of 2022, the market should remain reasonably buoyant as the central and western regions begin to see a greater supply of properties on the market, and with irrigation storages in the northern region being full.

“Interest rates, however, may start to play a stronger role and slow any further growth to farmland values.”