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

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

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