The Rural Bank's 2021 Australian Farmland Values report released on Tuesday reveals a 12.9 per cent rise nationally last year, taking the median price to $5907 a hectare.

Locally, the median price per hectare for farmland in southern NSW increased by 12.4 per cent in 2020 to $5010 compared to an increase of 0.9 per cent in northern Victoria to $7399 per hectare.

They increased 20.3 per cent and 16.1 per cent respectively in 2019.

The volume of transactions decreased in southern NSW in 2020 to 422, a 17.4 per cent reduction compared to a year earlier.

But there was an increase in transactions in northern Victoria last year by 8.6 per cent to 617, a turnaround of more than 10 per cent on 2019 figures.

The decline in transaction volumes in southern NSW was largely attributed to major bushfires experienced in parts of the Greater Hume and Snowy Valleys council areas.

Across the border, Moira Shire had an increase of 11 transactions.

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Indigo and Towong both reported a decline with the Upper Murray also experiencing major bushfire activity last summer.

Median price per hectare also increased in Moira to $7128, but Indigo and Towong reported declines due to an increase in the proportion of mid-priced transactions compared to 2019.

Farmland in Indigo was valued at $8693 per hectare and $6318 per hectare in Towong.

The price per hectare figure for the high rainfall area of Alpine Shire is $9876, but is even higher in Greater Hume at $9932 per hectare.

The volume of transactions more than $10,000 per hectare increased by 15.6 per cent with Wangaratta being one of the most active council areas in this space along with Mansfield.

"Farmland values have risen strongly in every state of Australia and in many cases to levels not seen before," Rural Bank chief executive Alexandra Gartmann said.

"Low interest rates and consistent commodity prices, coupled with exceptional seasonal conditions throughout 2020, have provided farmers with capital and an incentive to invest."

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