![Low rainfall zones, such as the Victorian Mallee, pictured, dominated the best value cropland for 2023 list. Picture by Gregor Heard. Low rainfall zones, such as the Victorian Mallee, pictured, dominated the best value cropland for 2023 list. Picture by Gregor Heard.](/images/transform/v1/crop/frm/5Q2j7ezUfQBfUJsaqK3gfB/8be488a3-fdbf-4aa8-8683-54818351e678.JPG/r0_0_6000_4000_w1200_h678_fmax.jpg)
Low rainfall zones across southern Australia dominated the ranks for the title of Australia's best value wheat cropping land in 2023.
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Data from Australian Crop Forecasters and Rural Bank comparing farmland values, via Rural Bank's annual Australian Farmland Values Report, and ACF production and yield information has thrown up interesting findings in terms of where farmers can find value for money.
While there were predictable suspects in terms of where had the highest wheat yields, including high rainfall zones such as the Wimmera in Victoria, which led all comers in terms of 2023/24 wheat yields, with 3.48 tonnes a hectare, with land values at a whopping $12,355 a hectare this did not translate to the best value.
Instead, that mantle went to the Eyre Peninsula in South Australia, where the land cost of a tonne of wheat $1676 a hectare. This was closely followed by the Victorian Mallee, $1785/t and the SA Mallee / Murraylands, $1969/t.
All three of these regions had relatively low land prices which well and truly compensated for slightly lower yields.
In the case of the Victorian Mallee the 2023-24 yields were only slightly below traditionally higher yielding regions at 3.27t/ha, with land values of $5839/ha.
The dry year for NSW and Queensland meant northern regions did not perform as well, with the Darling Downs representing the best value across the two states.
With the statistical region extending across lower priced country in the Western Downs, with overall values averaging $4450/ha even a low wheat yield of $1.55t/ha meant land values of $2870/t, which still represented better value than Victoria's high rainfall zone Western District, $5586/t or northern NSW, where recently appreciating land values smacked into low yields to deliver a poor outcome of $7723/t.
In the west, the far southern region of Esperance / Great Southern, $3022/t was the best value in spite of having the highest overall price at $8493/ha, closely followed by the lower Central Wheatbelt, $3100/t, while similar to the east coast the northern districts struggled due to lower yields.
When assessed over different periods the results altered greatly.
The ACF data for 2021, where northern regions had ample rain saw a number of Queensland and NSW regions well in the mix as the best value, while land prices, before the huge boom of the last three years, meant much better value for growers overall.
The Darling Downs, $793/t and WA's northern cropping zone, centred on Geraldton, $892/t were the two regions to dip below $1000/t and demonstrated the same formula of relatively low land values and moderate yields combining for the best results.
SA continued to provide ample opportunity for growers with the EP coming in at $1032/t and the Murray / Mallee at $1189/t, while northern NSW had vastly different results to last year at $1224/t.
Interestingly the high rainfall zones of south east South Australia, $4466/t and the Western District, $4329/t were again some of the more expensive districts, however growers in these regions value the overall consistency of yield which has shot land values up.
The huge importance of canola which generally sells for prices in excess of double that of wheat, was also born out in the data.
In several regions in 2023 the yields for canola fell just a whisker short of wheat, making it a very strong performer in terms of gross margins generated.
The Western District was again on top for yields, with 3.39t/ha but the best value was the EP at $1306/t, followed by Mallee regions either side of the border.
Even allowing for a poorer year the Riverina, $2830/t and NSW's Central West, $2906/t, both were better value than the Western District, Wimmera or SE SA.
In the west the Lower Central Wheatbelt, $2265/t was by far the best performed at nearly $1000/t cheaper than its nearest rival.
ACF's agricultural analyst Rod Baker said there was some case to suggest farmers were hunting country in the areas with best returns on investment but said there was more to purchasing patterns than simple yields and land values.
"The data shows that there is a weak positive relationship between year on year changes in productions and farmland values," he said.
"However, given the very low R-squared value in the data we analysed there are other factors beyond production, such as market demand, economic conditions and government policy factors that are playing a role in determining farmland values."