A record 2020-21 harvest across Australia was reflected in agri-food data from the NAB, showing that grain farmers’ trade transactions increased after record production levels.
Released last week on NAB Economics Data Insights: Agriculture The report shows that transactions for the bank’s agricultural, forestry and fishing clients have been strong following favorable seasonal conditions.
Overall, cash received by customers rose 15% yoy at the end of May, while NSW grain farmers appear to have benefited the most, with receipts up 73% in April yoy .
NAB Regional and Agri-Food Director Julie Rynski said farmers were ready to capitalize on strong business conditions.
“Most farmers have proven to be exceptionally resilient over the past two years under particularly difficult conditions,” said Ms. Rynski.
“The last time we saw cash inflows from our New South Wales grain-producing customers reach similar levels was in January 2017, following the second largest national harvest on record.
“Data from the Australian Bureau of Agricultural Economics and Resources and Resources shows that more than 33 million tonnes of wheat were harvested last season.
“It’s more than double the previous season and we’re seeing it in action with grain farmers across the country doing very well.
Ms Rynski said the positive outlook was also reflected in ABARES ‘forecast of above average winter crop production in 2021-2022, with the area planted to winter crops this year set to reach a record high. at national scale.
“Sectors that have endured the drought, like NSW cotton, are also showing tentative signs of recovery,” she said.
“However, with big inflows to the water tanks this year, we can definitely look forward to further gains in the coming season.
“Customer transactions by state indicate that grain production has also been driving business in Victoria, Western Australia and Queensland since late 2020.”