The latest ABARES Snapshot of Australian agriculture showcases the industry's significant growth, with the gross value of agricultural production increasing by more than 51% in the last 20 years, from $62.2 billion to $94.3 billion.
This increase in production value has been accompanied in a shift in the agricultural products produced in Australia, with growth in the horticulture and oilseeds industry, and a reduction in milk and wool production.
ABARES Executive Director Dr Jared Greenville said despite growth, there remains considerable variation in income at the farm level due to continuing changes in commodity prices and climate.
"Farm incomes have also changed over time, and throughout the last decade we have seen large growth in average incomes in the cropping industry especially," Dr Greenville said.
The report highlights the sectors enviable productivity performance, which averaged 2.18% between 1977-78 and 1999-00. However, since then, productivity growth has been 0.6% per year.
"Looking ahead, the sector appears to be facing slowing productivity growth," Dr Greenville said.
Dr Greenville said that farmers and policy makers will need to think creatively to identify and facilitate new sources of productivity growth and stay competitive.
"Achieving productivity growth will become increasingly difficult into the future as traditional channels for growth offer more marginal benefits."
The Snapshot also put a spotlight on sustainability, highlighting an increasing global attention on emissions from agriculture.
"Australia is globally relatively low in emissions intensity, and our farmers operate without environmentally harmful subsides used elsewhere, meaning we Australia is well placed to contribute to help lowering global agricultural emissions while supporting food security."
The ABARES Snapshot of Australian Agriculture 2023 report - available for download via the ABARES website - describes the current state of Australian agriculture, with the aim of providing key information and statistics in one place.
It covers eight key aspects of Australian agriculture: its role in the broader economy, trends in production, farm incomes, industry structure and productivity, climate change impacts and risk management, agricultural employment, sustainability and trade.
The report was released today at the ABARES Outlook 2023 Conference in Canberra.
