Top cropping regions of Australia: central-west NSW is number one

While they're ranked according to quarterly price growth, report author Elders' Matt Ough only considered regions that also met four important criteria:

Top of the list came the wheat and barley-growing central-west NSW, which takes in Coonamble, Dubbo, Forbes, Gilgandra, Nyngan and Parkes.

The region had a rolling one year median price/ha averaged a quarterly increase of 5.7pc in 2021.

Elders state real estate manager NSW Richard Gemmell said confidence remained strong, even as the region moved from autumn into winter.

"Winter cropping season is looking very positive, however, a considerable amount of the state has experienced wet weather, presenting challenges for weed control and sowing," he said.

"We expect confidence in rural property to continue in the foreseeable future driven by the prospect of high grain prices again this season and a build-up of solid buying power from appreciating balance sheets."

Ceduna, Cummins, Cleve and Port Lincoln, another wheat and barley growing hub, was second.

The rolling one year median price/ha averaged a quarterly increase of 3.8pc in 2021.

Elders Real Estate Port Lincoln agent Luke Duncan said price records had broken thanks to interest from investors and farmers from other regions, as well as locals.

"The additional widespread demand, along with a healthy appetite from locals to expand is the key driving force for price growth in the region," he said.

Mr Duncan said prices continued to be strong and was confident they would not be on the way down any time soon.

"Despite suggestions of interest rates being on the move, they are still very low historically and given that Australian commodity prices remain high, I expect a continuation of high prices for agriculture land being achieved for the rest of the year and beyond.

"The Eyre Peninsula recorded an increase in median price per hectare of 16.3pc in the 2021 calendar year, taking the five-year average annual growth rate to 25pc.

"In the 14 years I've been in real estate, I have never seen growth like it and it's hard to imagine a better time to sell."

The wheat and barley regions around Beverley, Corrigin, Cunderdin and Narrogin averaged a quarterly increase of 3.1pc in 2021.

Only a fraction of a percentage point behind the central west, the Kulin, Lake Grace, Merredin and Narembeen regions averaged a quarterly increase of 3pc in 2021.

Taking in Charlton, Hopetoun, Horsham, Kaniva, Kerang, Mildura, Ouyen and Swan Hill, the Wimmera Mallee's rolling one year median price per hectare averaged a quarterly increase of 2pc in 2021.

Elders state real estate manager, Victoria and Riverina, Nick Myer said the region was helped along by a perception of value.

"Corporate and family expansion opportunities, high grain prices, good yields and consecutively good seasons are all factors that make the region an appealing rural property prospect," he said.

Limited availability of farmland on the market had also underpinned prices.

"Large family farms and corporates have been active in the region and buying power remains high, driven by appreciating balance sheets," Mr Myer said.

"We expect the positive trend in land values to continue in the second half of 2022."

All five of the top cropping regions Elders identified mostly grow wheat and barley, though the Wimmera-Mallee also has a lot of canola.

Mr Ough pointed out that the commodity prices for each of the three crops had been impressive.

While there were some small differences within each state, December 2021 wheat prices rose 36.2pc in SA, 33.9pc in Victoria, 27pc in WA and 26.3pc in NSW.

It was a similar story for barley. Prices lifted 36.6pc in SA, 24.1pc in Victoria, 12.9pc in NSW and 3.9pc in WA.

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Less canola is grown in the top five regions but its prices grew dramatically, up 54.4pc in SA, 44.3pc in Victoria, 40.1pc in WA and 39.1pc in NSW.

Clear Grain Exchange managing director Nathan Cattle said the war in Ukraine and poor seasonal conditions facing international competitors had worked in Australia's favour.

"The Ukraine/Russia conflict does not look likely to abate in the medium term and we are nearing the first stages of the winter crop harvest in the northern hemisphere," he said.

"Hence, the window for those crops to improve is closing however there is still potential for spring crops to improve if conditions pick up in the coming months which could weigh on prices.

"Overall, there are reasonable drivers to support Australian prices again this season."

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