Australian farmland investment accelerates as agriculture nears $100bn

Australia’s agricultural sector is forecast to reach a value close to $100bn in 2026, as strong commodity fundamentals and global capital flows continue to support farmland investment across the country. Beef production and large-scale cropping assets are expected to attract the greatest investor interest, with both domestic and overseas buyers active in the market.

According to market analysis cited by JLL, farmland transaction activity has been strongest in northern Australia, where more favourable seasonal conditions have supported higher sales volumes. Queensland and the Northern Territory recorded sales growth of more than 7% in the year to September, despite flooding in parts of Queensland in early 2025. In contrast, prolonged challenging weather conditions in New South Wales, Victoria, South Australia and Tasmania contributed to a collective decline in sales volumes of almost 22% over the same period.

Offshore capital and pricing dynamics
International investors are expected to remain active in Australia’s largest farmland transactions. Australian land values continue to be viewed as competitive when adjusted for productivity, scale and operating conditions. Benchmark comparisons show average arable land prices in Europe at just under $21,000 per hectare in 2023, compared with approximately $9,400–9,600 per hectare in Australia. Comparable US farmland averaged about $15,760 per hectare in 2024, reinforcing Australia’s relative affordability for institutional capital.

This pricing differential is supporting steady investment interest rather than the rapid price escalation seen in previous years. Market participants expect values to continue growing at a more moderate and sustainable pace through 2026.

Major transactions and market volatility
Several high-value transactions underscored investor appetite during 2025. A Canadian pension-backed venture acquired full ownership of the Kooba Aggregation in western New South Wales in a deal valued at around $500m, covering cotton, cropping, livestock and almond assets. Separately, Stanbroke Pastoral Company acquired Rangers Valley, a grain-fed beef and feedlot business in northern New South Wales, for approximately $400m.

Not all large transactions progressed to completion. A proposed $780m acquisition of 13 New South Wales farms spanning more than 225,000 hectares by a US-based investment vehicle collapsed during the year, highlighting the scale and complexity of cross-border agricultural deals.

Production outlook and export performance
Forecasts from Australian Bureau of Agricultural and Resource Economics and Sciences indicate that Australia’s combined agriculture, fisheries and forestry sectors are expected to reach a record $106bn in FY26, with agriculture alone accounting for $99.5bn. This growth is underpinned by strong livestock prices, improved market access and rising productivity in sectors such as horticulture.

Research from RaboResearch estimates Australian beef production in 2025 at approximately 2.9 million metric tonnes, an 11% increase year on year and a new record. Beef exports rose 15% in the first ten months of 2025 to around 1.3 million metric tonnes shipped weight, with the United States accounting for 29% of exports and shipments to China increasing by 44%.

Grain and oilseed production is expected to exceed the five-year average, supporting higher export volumes in 2026. However, global oversupply has weighed on prices for grains, oilseeds and several pulse crops. Wool prices strengthened late in 2025 due to tighter domestic supply, while Western Australia is on track for a record grain harvest following favourable seasonal conditions, contrasting with ongoing limitations in South Australia.

Together, these trends point to a sector supported by solid production fundamentals and sustained investor interest, positioning Australian agriculture for continued, if more measured, growth through 2026.

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