ABARES projects the value of Australian agriculture to reach $81 billion in 2021-22, a new record

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Australian agriculture is worth more money than ever.

The National Commodities Forecaster expects the value of agriculture to reach $81 billion this fiscal year, an increase of more than $12 billion from the previous record, set last year. last.

The Australian Bureau of Agricultural and Resource Economics and Science (ABARES) attributed the rise in value to a record grain harvest and the highest prices paid for Australian produce in 32 years.

“It has been a remarkable year for Australian agriculture after a remarkable year last year,” said ABARES executive director Jarred Greenville.

Dr Greenville said the conditions meant average farm incomes for 2021-22 would be significantly higher than last year.

Jarred Greenville says farmers’ incomes should offset rising input costs.(ABC News: Matt Roberts)

On average, large farm revenues increased 34% to $278,000, dairy farm revenues increased 35% to $337,000 and agricultural operations increased 40% to $572,000.

Agricultural exports are expected to rise by a third from last year, valued at more than $64 billion – also a record.

“It’s pretty good across the board,” Dr. Greenville said.

“With production at record levels and high prices, increases in income should more than offset the additional pressure from rising input costs for fuel, fertilizer, chemicals and labor.”

As part of its annual commodity outlook, released today, ABARES said winter crop production for 2021-22 reached a record 61.9 million tonnes.

Agriculture has the chocolates

In Bowning in southern New South Wales, farmer Sam Kelly said he couldn’t remember a better time.

“Not in my lifetime and even in my father’s lifetime; he maintains it’s one of the best seasons we’ve seen, we had rain at the right time,” Mr Kelly said.

Cattle
The cattle on Sam Kelly’s Bowning Farm have increased dramatically in value. (ABC News: Matt Roberts)

A cattle, crop and sheep farmer, Mr Kelly said farmers across the country were enjoying high prices for their produce.

“Cattle prices are amazing right now, grain prices are pretty high, wool is pretty strong compared to when the pandemic started, and sheep prices have held up as well.”

Keagan Size works at Mr Kelly’s property and said it has been “a phenomenal two years”.

“We haven’t missed anything…farming is definitely in trouble right now.”

Wine Dollar Trend

However, for some farmers, 2021-22 would be a step backwards.

The value of wine grape production fell 28% to about $870 million due to lower prices and lower production.

ABARES attributed the fall to China’s decision to impose tariffs on Australian wine.

Slower times ahead

Dr Greenville said the agricultural sector could not expect the good times to last forever and prices were likely to soften next year.

“We expect the gross value of agricultural production to fall about 6% to $76 billion in the next fiscal year,” he said.

It would be the second highest year on record and falling short of the government-endorsed industry target of making Australian agriculture a $100 billion sector by 2030.

A lamb
Australian farmers are reaping the rewards of high prices for their produce.(ABC News: Matt Roberts)

Dr Greenville said it was too early to understand the impact flooding in southeast Queensland and northern New South Wales would have on production, but it was likely that events in Europe of the East would have an impact on the results of agriculture.

“This is terrible news in the Russian-Ukrainian space,” he said.

“For grain markets, Russia and Ukraine account for around 30% of wheat exports and around 20% of barley exports.

“Currently we have high prices due to drought conditions in America; this should last and there will be increased volatility.

“Fertilizer and energy input prices are high at the moment, as we know, and it is expected that the ongoing conflicts and disruptions could stay higher for longer – this will be the main impact we see. on the sector.”

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