Lexi Webster
Australia's agricultural sector is a vital pillar of the country's economy, with vast expanses of fertile land, diverse climates, and a commitment to innovation. The average farm size in Australia is reported to be around 2,850 to 4,331 hectares, with approximately 135,000 farms across the country in 2023. This diversity in farm sizes reflects the adaptability of Australian agriculture, catering to both large-scale commercial operations and smaller family-owned farms. The country's agricultural landscape encompasses a wide range of farm types, including cropping farms, livestock farms, and mixed farming systems.
| Characteristics | Values | |
|---|---|---|
| Average farm size | 4,331 hectares | |
| Number of farms | 87,000-135,000 | |
| Farm business performance | Varies significantly from year to year | |
| Farm sale trends | Farms are traded between corporations or sold because they are too small for farming | |
| Cropping farms | Average area operated by large farms: 5,200 hectares | |
| Average area of medium-sized farms: decreased over the past decade | ||
| Livestock farms | Cell, strip, or rotational grazing management systems (61%) | |
| Long-term ground cover requirement (61%) | ||
| Sustainable land management practices | Stubble retention (85%) | |
| Reduced tillage techniques (68%) | ||
| Optimisation of pesticide and fertiliser usage (65%) | ||
| <EOS_TOKEN> | Characteristics | Values |
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What You'll Learn
Farmland sizes vary
Australia's agricultural landscape is diverse, with a wide range of farmland sizes and types. In 2023, the country had approximately 135,000 farms, with an average size of around 2,850 hectares. This average, however, varies across different sources, with some stating it to be as high as 4,331 hectares. This diversity in farmland sizes reflects the adaptability of Australian agriculture, accommodating both large-scale commercial operations and smaller family-owned farms.
The size of farms in Australia can range from vast stations spanning millions of hectares to smaller plots of a few hundred hectares. The larger farms, often owned by intergenerational trusts, international corporations, or individuals with significant wealth, can cover areas comparable to the size of Belgium. These expansive farms significantly influence the average farm size in Australia.
On the other hand, smaller farms, typically family-owned or operated, occupy a more modest area. These farms may range from a few hundred to a few thousand hectares, with sizes influenced by factors such as regional variations, crop types, and farming practices. The smaller farms often face challenges in terms of profitability and may be sold off or converted for other purposes if they cannot sustain viable agricultural operations.
The size of farms in Australia is also influenced by the industry they belong to. For example, the cropping industry exhibits lower concentration, with the largest 10% of farms accounting for less than 40% of output. In contrast, the beef industry demonstrates higher concentration, with the largest 10% of farms generating significantly higher rates of return compared to smaller farms.
Additionally, the performance of farms varies across sizes. The largest 10% of broadacre farms, for instance, contribute to almost 55% of the output, while the smallest 10% account for only 0.5%. This disparity highlights the impact of scale and resources on production capacity and financial returns.
In summary, farmland sizes in Australia vary significantly, reflecting the country's diverse agricultural landscape. The average farm size falls between 2,850 and 4,331 hectares, encompassing both expansive corporate-owned farms and smaller family-owned operations. The size of a farm influences its output, rate of return, and overall performance, contributing to the dynamic nature of Australia's agricultural sector.
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Large farms vs small farms
Australia has around 135,997 farms, covering 61% of the country's landmass. The average size of a farm in Australia is 4,331 hectares. However, real estate, domain, and elders have very few farms near that scale. Farms of 4,000 hectares or more are often made up of multiple smaller farms combined over the last 100 years or so.
Large farms in Australia tend to be owned by intergenerational trusts, international corporations, and billionaires. They are often located in remote areas and are not frequently sold. When they are sold, it is usually through brokers rather than being advertised online. Large farms are also more likely to be traded between corporations or sold to adjacent land corporations.
Small farms, on the other hand, are more likely to be sold off-market to neighbours or through word-of-mouth. They may also be sold because they are too small to be used as farms and are converted into large personal properties. Small farms were historically protected in the northern states through regulations on milk sales until the 1980s. The Kerin Plan began the process of deregulation in 1986, and by 2000, price supports were removed. This resulted in a 30% reduction in farmers but a 55% rise in milk production.
In recent years, the Australian agricultural industry has faced challenges due to the COVID-19 pandemic, which disrupted agricultural imports and exports and resulted in a severe shortage of farm workers. Despite these challenges, agriculture in Australia continues to be a major economic sector, contributing $100 billion annually to the country's GDP.
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Farmland ownership
The average farm size in Australia is 4,331 hectares. However, real estate, domain, and elders have very few farms near that scale. The average area of large farms in Australia, as of June 30, 2023, was around 5,200 hectares. The average area of medium-sized farms has decreased over the past decade, while that of large farms has increased.
Farms in Australia are either traded between corporations or sold because they are too small for farming. Sometimes they are converted into large personal properties or sold to corporations that own adjacent land. The majority of farms are sold off-market to neighbours or consolidated holdings. Larger farms are usually sold via corporate channels.
In 2023, the amount of agricultural land with some level of foreign ownership fell by 0.3%, a significantly smaller decrease than the 10% fall observed in 2022. Some foreign companies have a significant presence in the Australian farming industry. For example, the Brazilian company JBS owns over 100 Australian brands of fresh produce and smallgoods.
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Farmland sales
The average farm size in Australia is around 4,331 hectares. However, real estate platforms have very few farms near that scale. The average area of large farms in Australia was around 5,200 hectares as of June 2023. Large farms have seen an increase in average area over the past decade, while medium-sized farms have decreased.
The value of farmland is of significant economic and ecological importance to Australia, with over half of the country's land mass dedicated to agriculture. Farmland prices have generally experienced strong growth since 1992, with the average price per hectare of broadacre farmland growing at an average annual rate of 10.2% over the last decade. The volume of transactions has decreased in recent years, from 4,445 in 2021 to 2,258 in 2024.
In terms of where to find farms for sale, many are traded between corporations or sold to adjacent landowners. Larger farms are often sold via corporate channels, while smaller farms are more commonly sold off-market to neighbours. Farms are sometimes advertised in publications such as The Land, but word-of-mouth sales are also common.
Some platforms that list farms for sale in Australia include Farmbuy.com and Farmproperty.com.au.
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Farmland performance
Australia's agricultural sector is a vital pillar of the country's economy and a global agricultural powerhouse. With diverse climates, vast expanses of fertile land, and modern farming practices, the country consistently produces a range of high-quality products, including grains, livestock, dairy, fruits, vegetables, and wine.
The average farm size in Australia is reported by some sources as 4,331 hectares. However, it is noted that real estate, domain, and elders have very few farms near that scale. This average figure may include outliers such as Kidman Station, which is the size of Belgium. Other sources report the average farm size to be around 2,850 hectares in 2023, with approximately 135,000 farms across the country. This distribution reflects the adaptability of Australian agriculture, catering to both large-scale commercial operations and smaller family farms.
The performance of farmland in Australia varies significantly from year to year due to volatile seasonal conditions and fluctuating commodity prices. However, data averaged over 2020-2021 to 2022-2023 provides a more meaningful measure of farm performance. Size is an important factor influencing farm business performance. The largest 10% of broadacre farms in terms of revenue accounted for almost 55% of output, while the smallest 10% of farms accounted for only 0.5% of broadacre output. Similarly, in the beef industry, the largest 10% of farms had a significantly higher rate of return (12.7%) compared to the smallest 10% (7.1%). The cropping industry showed less concentration, with the largest 10% of farms contributing less than 40% of output and a 16% rate of return, while the smallest 10% had a 4.2% rate of return. Dairy farms were the least concentrated, with the largest 10% accounting for nearly 35% of output and a 14.5% rate of return, and the smallest 10% producing only 1.2% of output with a 7.7% rate of return.
Australian agriculture has demonstrated its resilience and ability to adapt to changing conditions and market demands. From 2020-2021 to 2022-2023, agricultural production reached record highs for three consecutive years due to favourable climate conditions and robust commodity prices. Despite a dip in 2023-2024 due to drier conditions and lower crop prices, agricultural production remained strong, ranking as the third highest on record. This trend is expected to continue, with a forecast increase in production for 2024-2025.
Sustainable land management practices have become standard among Australian farmers. Broadacre cropping farms have widely adopted stubble retention (85%), reduced tillage (68%), and optimised pesticide and fertiliser usage (65%), leading to decreased reliance on these inputs. Livestock farms are increasingly employing grazing management systems such as cell, strip, or rotational grazing (61%) and setting long-term ground cover requirements (61%) to ensure sustainable land management.
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Frequently asked questions
The average farm size in Australia is around 2,850 hectares, though some sources state it to be 4,331 hectares.
Australia's agricultural landscape is diverse, with a wide range of farm types and sizes. The country has vast expanses of fertile land and diverse climates, making it a global agricultural leader.
Size is an important factor in the performance of Australian farms. Larger farms tend to have higher rates of return, with the largest 10% of broadacre farms accounting for almost 55% of output.
With agriculture occupying over half of Australia's land, sustainable land management practices are crucial. Many farms have adopted strategies such as stubble retention, reduced tillage, and optimised pesticide and fertiliser usage.
Australia's agricultural sector is vital to the country's economy and global food production. It contributes significantly to exports, with a steady supply of high-quality, nutritious produce for both domestic and international markets.
