Growers look to the future

According to the Commonwealth Bank’s latest Agri Insights report, more than a third of farmers across Australia plan to increase investment in technology and innovation to enhance productivity and efficiency in their operations.

Commonwealth Bank’s Executive General Manager of Regional and Agribusiness Banking, Grant Cairns, says farmers are recognising the importance of innovative practices and technology in driving profits and helping them achieve more from their businesses.

“Farmers know that getting the best tech on farm allows them to do better in good years and also positions them to get through the tougher years,” he says.

“It’s about maximising the return on investment not only of their equipment, but their people and their own time and effort.”

Only about three per cent of farmers surveyed have plans to decrease their spending on technology.

The research also found intentions to invest in livestock production are strong in the next 12 months, with 33 per cent of wool growers and 31 per cent of lamb producers looking to expand their operations.

In cattle, 23 per cent of dairy farmers say they will expand their enterprise while 24 per cent of beef producers plan to scale up.

According to Cairns, the investment intentions reflect the commodity trends and market demand.

“With continuing high prices and demand, we’re seeing strong intentions across the spectrum for livestock in the next 12 months,” he says.

“This has coincided with some reduction in grains intentions as some farmers respond to lower prices and the sometimes greater flexibility that livestock can offer.”

According to the survey, 35 per cent of grain growers who will reduce their enterprise are reacting to lower prices.

Fixed infrastructure and equipment investment are also high on farmers’ agendas in the next year, with 35 per cent planning to increase their spending in this area.

“Commonwealth Bank’s Agri Insights research points to a strong, resourceful and forward-facing agri sector,” Cairns concludes.

The latest Agri Insights research surveyed 1400 Australian farmers during September 2017 and focused on farmers’ intentions for their farm enterprises over the coming 12 months, as well as their investment over the past 12 months.