Farmland prices have almost doubled over the past three years, according to new data from the Australian Bureau of Agricultural and Resource Economics and Sciences.

The average per-hectare price for broadacre farmland rose by 93 per cent from 2020 to 2023.

Jared Greenville from ABARES said the “extraordinary” growth can be put down to low interest rates, strong commodity prices and increased demand for land.

“Farmland is often used to secure lending, so increases in value can both improve equity and drive investment,” Dr Greenville said.

The biggest price hikes have been in high-rainfall areas, where the price has increased by 125 per cent over three years to $9000 per hectare.

The wheat-sheep zone has also experienced strong growth, jumping by 80 per cent to $3465 per hectare over the same period.

The average price of pastoral farmland increased by 130 per cent over the three years to hit $1528 per hectare in 2023.

Dr Greenville said the latest farmland price estimates can now be accessed through ABARES’ new Farmland Price Index online tool.

“Users can make price comparisons between farming zones or download data for their own analysis,” he said.

– AAP