As per the Rural Bank Australian Farmland Values 2019 report farmland values are expected to continue to rise “underpinned by strong demand for agricultural assets and increasing profitability of farming operations in an environment of low interest rates and strong commodity prices” despite challenging seasonal conditions. The report states “The South Australian median price of farmland in South Australia increased by 17 per cent in 2018, outperforming the national median growth of 10.7%.”
According to the Australian Governments Department of Agriculture and Water Resources (ABARES) March 2019 quarterly Agricultural Commodities report “At a national level, the volume of farm production (in 2018–19 dollars) is expected to have declined by 6%, driven by an 11% reduction in the volume of crop production. Drought in the eastern states significantly reduced the 2018–19 winter crop, but one of the largest Western Australian harvests on record has provided a buffer to the national total.” And further states “In 2018–19 the value of farm production is expected to decline by 4% to $58 billion. Improved commodity prices are cushioning this decline. International and domestic prices for crops have been rising from low levels. In 2018–19 grain prices are expected to increase by 11% on average and contribute to a 3% rise in farmgate prices. Strong export demand for wool and sheep meat is contributing to a small overall rise in the prices of livestock and livestock products.”
With historically low interest rates, the lowering of the Australian Dollar which is floating around the 70c US, and the relatively strong beef, lamb and wool prices the local dry land farm market should remain relatively strong.