If one word could sum up the current agricultural land market - volatile - is how Rabobank analyst Paul Joules would describe it. 

He reckons the unprecedented 80% growth in land prices in recent years is changing the way farmers make decisions... shifting their focus to productivity over expansion. 

This bite-size chat touches on the influence of commodity prices and global supply chains on land values, as well as the emerging trend of partnerships in farm purchases.

takeaways

• Agricultural land prices have increased by about 80% from 2020 to 2023
• There has been a recent 6% decline in land prices, but they remain high historically
• The agricultural sector is entering a phase of more modest growth
• Corporate investment in agriculture has increased but is showing signs of tapering off
• Farmers may shift focus from expansion to maximising productivity on existing land
• Commodity prices have a significant lag effect on land values
• New farmers face challenges due to high land prices and market volatility
• Partnerships and joint ventures may become more common in agriculture

chapters

02:59 Current Trends in Agricultural Land Values

05:38 Impact of Corporate Investment on Agriculture

08:47 Challenges for New Farmers in the Current Market

You can hear more episodes of Humans of Agriculture here.

This episode of Humans of Agriculture is brought to you by our Partners at Rabobank Australia.

If you enjoyed this episode, share with a friend and let us know your thoughts at hello@humansofagriculture.com.  Don't forget to rate, subscribe, and leave a review!

Rabobank Deposits - Partnership
Rabobank was founded by farmers, for farmers. And today, they remain proudly focused on supporting Aussie farmers, food producers, and agribusinesses - the people who grow the food that sustains us every single day.

Brekky, lunch, or dinner - we rely on farmers at least three times a day. They're the quiet heroes behind every meal.
And here’s something many people don’t realise: Rabobank’s deposits are used to support Australian farmers.

That means the dollars entrusted with Rabobank go directly into strengthening the food system that feeds our nation.
It’s the perfect circle, your dollars support Aussie farmers while they support you... You can learn more at rabobank.com.au.