Ag production to crack $60 billion

Australia's agricultural industry is set for a bumper year with crop yield, total farm production value and export earnings predicted to hit all-time highs.

According to the latest farm commodity report released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), farm production value is predicted to top $60 billion in 2016-17, a 6.1 per cent increase from its last forecast in June.

The latest forecast figure would also represent a 16 per cent increase from the $52 billion average value over the five years to 2015-16.

ABARES Acting Executive Director, Peter Gooday, says the recent bumper winter crop harvest and forecast increases in horticulture and cotton production contributed to the great results.

"Export earnings from farm commodities are forecast to increase by 6.7 per cent to $47.5 billion in 2016–17, following a modest increase of 1.4 per cent in 2015–16 to $44.6 billion," he says.

"The gross value of crop production is forecast to increase by 14.7 per cent to $31.7 billion in 2016–17."

Export earnings are expected to increase across most commodities including wheat (up 25 per cent), sugar (23 per cent), cotton (56 per cent), chickpeas (74 per cent), and canola (33 per cent).

The beef and veal; mutton and live cattle sectors, on the other hand, are expected to record falls in export profit. Earnings from dairy products are expected to stay the same.

Read the full December edition of ABARES' Agricultural Commodities report here.