A new report has highlighted its future forecast for the Australian agriculture sector, with the gross value of agricultural production forecast to increase.
The ABARES Agricultural Commodities and Crop Report forecasts 4 per cent growth in this production. The report highlighted “significant” growth in the sector from $82.5 billion in 2023-24 to $86.2 billion in 2024-25.
“We have seen more favourable seasonal conditions across large parts of the country, easing input prices, and higher livestock prices supporting farm incomes,” Jared Greenville, executive director of ABARES, said.
“However, unfortunately not all farms in all regions are expecting to see an improvement.
“Crop production across Australia has been driven by New South Wales and Queensland, and better than expected seasonal conditions in Western Australia.
“But unfavourable conditions in north and western Victoria and most of South Australia following below average winter rainfall have resulted in lower than expected crop production.”
The report noted that less carry-over stocks of grain available had driven a slight decline in export value. Despite this, product is still the third highest on record following two record breaking years previously.
The report forecasts the value of agricultural exports to be $68.5 billion in 2024-25. Australian exports continue to be demanded in key markets including US, the Middle East and China.
“We’re also seeing increased trade flows with China across various commodities, following improvements in market access,” Greenville said.
“The horticulture industry is continuing to showcase its resilience as it maintains its forecast of record-breaking production values.”
According to ABARES, the average cash incomes for broadacre farms are forecast to increase by 64 per cent to $192,000 per farm in 2024-25.
“The ABARES Commodities and Crop Reports tell a positive story for Australian agriculture, capitalising on demand for our quality products,” Greenville said.