Australia’s agricultural sector is expected to have a record year with forecasts of $73 billion in gross production value, as WA farmer confidence reaches a 10-year high.
Australia’s agricultural sector is expected to have a record year, with forecasts of $73 billion in gross production value, as confidence among Western Australian farmers reaches a 10-year high.
The Australian Bureau of Agricultural and Resource Economics’ report, Agricultural Commodities: September Quarter, has forecast an 8 per cent increase in the value of production above the 2020-21 record due to above average crop production, international markets and strong livestock prices.
This is an increase from last year's production, which was worth $66 billion.
The prospect of a large WA grain crop has lifted sentiment in the state’s agricultural sector to its highest level in a decade, a Rabobank Australia survey released today has found.
WA growers were anticipating a record crop of 20 million tonnes, according to the Grain Industry Association of Western Australia’s crop report, and although recent frost damage has slightly tempered industry expectations, a large crop is still predicted.
The latest Rabobank Rural Confidence Survey found more than half of the state’s farmers, about 52 per cent, have a positive outlook for the agricultural economy in the coming 12 months.
Just under half (46 per cent) were expecting a continuation of current economic conditions and 2 per cent anticipated a deterioration.
It’s the highest level of confidence Rabobank has reported since March 2011.
More than half of those surveyed were expecting to generate a higher gross farm income in 2021-22 and 39 per cent of farmers were looking to increase investment in their farm businesses over the next year.
Sentiment was highest in the grains sector, with 76 per cent of the state’s grain growers having a positive outlook on the 12 months ahead, up from 35 per cent last quarter.
Rabobank regional manager for WA Steve Kelly said while the full impact of the recent frost was unknown, above-average grain production along with strong commodity prices were behind the positive sentiment.
Mr Kelly said the northern Wheatbelt had sustained some frost damage, but the extent was still to be determined.
“Meanwhile, waterlogging damage has been reported in crops on the south coast and a kind finish will be required to realise the potential in crops that were re-sown,” he said.
“I think the survey results would have been even higher if there weren’t concerns over sourcing labour as there is a lot of concern amongst farmers around having enough staff.”
The survey found sentiment was also strong among livestock farmers, with 44 per cent of sheep producers expecting an improvement on conditions and most beef producers (79 per cent) predicting conditions to continue.
“Strong lamb and sheepmeat prices together with a recovery in the wool market have underpinned positivity in the sheep sector,” Mr Kelly said.
“While many of the key pastoral regions have enjoyed a good season and when you combine this with strong beef price, it is no wonder beef producers are also positive about the outlook.”
