Farmland most 'tightly held' it's been in a generation

There's been a drop in demand for grazing properties with the price of sheep and cattle falling. (Dan Peled/AAP PHOTOS)

Australian farmland is more tightly held than it has been for a generation and prospective buyers are carefully reassessing purchasing decisions, according to a new report.

The Rural Bank Australian Farmland Values Report is the longest-running analysis of the farmland market in Australia and has tracked every sale annually for almost three decades.