AustraliaI want to negotiate a higher price for my compulsorily acquired farmland. What factors are considered?
When negotiating a higher price for compulsorily acquired farmland in Australia, factors like market value, disturbance costs, severance loss, and special value to the owner are considered under the Lands Acquisition Act 1989 (Cth).
What the Law Says
The federal Lands Acquisition Act 1989 (Cth) governs compulsory acquisition of land by the Commonwealth, including farmland. It sets out the legal framework for determining just terms compensation.
Compensation for compulsorily acquired farmland must be on 'just terms', as required by section 51(xxxi) of the Australian Constitution. Under the Lands Acquisition Act 1989 (Cth), the primary measure is the market value of the land at the date of acquisition.
In addition to market value, the Act requires consideration of other financial losses directly caused by the acquisition — such as disturbance to farming operations, loss from severing part of a farmholding, and any special value the land has to the owner (e.g., unique soil quality or irrigation infrastructure).
The Act also allows for compensation for legal and valuation expenses reasonably incurred in negotiating or challenging the acquisition.
Statutory TextThe amount of compensation payable in respect of the acquisition of land shall be the market value of the land at the date of acquisition.
— Lands Acquisition Act 1989 (Cth), s. 52 — Compensation for acquisition of land
Statutory TextIn determining the market value of land, there shall be taken into account… any special value of the land to the person entitled to compensation.
— Lands Acquisition Act 1989 (Cth), s. 54(2)(a) — Matters to be taken into account
What to Do
Obtain an independent valuation report that addresses market value, severance, disturbance, and special value.
Submit written claims for additional compensation (e.g., for fencing, relocation, stock handling, or lost future income) within 6 months of acquisition notice.
Negotiate formally with the acquiring authority using your valuation and supporting evidence.
If agreement isn’t reached, apply to the Administrative Appeals Tribunal (AAT) for review of the compensation amount.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.