For the first time in 15 years, all Australian states experienced growth in median price per hectare, demonstrating the resilience of farmland values through events as significant as the COVID-19 pandemic.

Tasmania pushed further into record growth territory (25.3 per cent growth in 2020), followed by Western Australia (19.3 per cent), NSW (15.6 per cent), Queensland (11.8 per cent), South Australia (10.9 per cent) and Victoria (6.9 per cent).

These extraordinary increases were despite a 14.5 per cent rise in transaction volumes, bouncing back from 2019's historic lows. Total transactions equated to a combined 8.2 million hectares of land with a collective value of $10 billion.

Remarkably, Australian farmland has delivered an average compound annual growth rate of 7.6 per cent over the past 20 years.

Alexandra Gartmann, CEO of Rural Bank, said the report demonstrated that farmland continued to perform extremely well and reflected the underlying strength of the sector.

"Farmland values have risen strongly in every state of Australia and in many cases to levels not seen before," Ms Gartmann said.

"Low interest rates and consistent commodity prices, coupled with exceptional seasonal conditions throughout 2020, have provided farmers with capital and an incentive to invest. These factors have proven to be powerful drivers in terms of demand for farmland."

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