In the year to March 2020, prime farmland delivered a return of 14.9%, according to the Australian Farmland Index. This is up from an annualised 13% in the December quarter of 2019.

This increase in performance is attributed to favourable growing conditions, a low Australian dollar, and strong commodity prices.

For the sake of comparison, the benchmark ASX200 delivered a loss of 14.7% in that same period. And farmland in the United States generated just a 4 percent return.

Tim Sheridan, COO of Rural Funds Group, said that Australian agriculture has performed well despite the challenges presented by the COVID-19 pandemic.

The Australian Farmland Index tracks the performance of 37 premium properties with a combined value just under $800 million.

However, Frank Delahunty, a co-ordinator of the Index, has advised against relying too much on the March quarter figures. June Quarter Data, when valuations of farms are typically concluded, will provide a clearer picture.

So many property investors are focused on the residential space, that they forgot about other sectors. But with performance like this, farmland will be attracting some new investors in the coming months.