Agriculture predicted to rebound next year

Following a forecasted dip of $16 billion this year in farm production value, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is expecting Australia’s agriculture industry to bounce back next year.

The organisation’s most recent Agricultural Commodities and Australian Crop reports are predicting that the gross value of production in 2024–25 will reach $90.8 billion, the third highest on record.

The gross value of Australian crops production, as well as livestock and livestock products, are both estimated to increase to $48.7 billion and $36.2 billion respectively.

“For our livestock production and livestock products industries this is a record high and the result of expected favourable climate conditions and improving prices,” said ABARES Executive Director, Dr Jared Greenville.

“Above-average summer 2023–24 rainfall and subsequent build-up of soil moisture reserves in eastern Australia is expected to provide a good incentive for planting ahead of the 2024–25 winter crop season.”

Broadacre farm cash incomes are also set to rebound in 2024-25 to $192,000, after significant falls in 2023–24, ABARES added.

“The forecast improved growing season climate conditions and the expected turnaround in livestock prices in 2024–25 will drive increases in farm income,” Dr Greenville said.

While the 2024–25 outlook is favourable for production, forecasts predict exports will continue to decline.

“In 2023–24 the value of Australia’s agriculture, fisheries and forestry exports is forecast to fall by 13% to $71.6 billion, but this follows the record high the industry experienced the previous year,” Dr Greenville said.

“This decline is expected to continue, with an additional five per cent decline expected, leaving the 2024–25 value at $68.1 billion.”

To read the reports in detail, visit ABARES' website.