The Snapshot of Australian Agriculture 2025 by ABARES discusses the trends in agricultural production, farm income, industry structure, climate change impacts, risk management, and the significance of agricultural exports. It underscores the importance of sustainable practices, evolving agricultural productivity, and the need for ongoing investment in research and development, particularly in the face of increasing climate variability and global sustainability demands.

Key Points

Agriculture’s Role in the Economy

• Land Use and Water Consumption: Agriculture occupies 55% of Australian land (426 million hectares) and accounts for 74% of the country’s water usage (9,981 gigalitres in 2021-22).
• Economic Contributions: Agricultural products contributed 10.8% of goods and services exports valued at $71.5 billion in 2023-24 and generated 2.4% of GDP.
• Employment: The sector employs 315,600 people (5.9% of rural employment and 2.2% of total national employment).

Trends in Australian Agricultural Production

• Production Growth: Despite a decline in 2023-24, agricultural production value increased by 34% in the last twenty years, reaching $82.4 billion.
• Sector Contributions: The growth is attributed to productivity enhancements in cropping and high commodity prices in livestock due to international demand.
• Export Orientation: Approximately 70% of agricultural production is exported, with key exports including wheat and beef.

Sustainability Practices

• Sustainable Land Management: Majority of farms adopt sustainable practices, including stubble retention, reduced pesticide use, and varied grazing management systems.
• Comparative Emissions: Australia has low on-farm emissions per unit of agricultural output compared to other countries, being 42% lower than the U.S. and 29% lower than the EU.

Climate Change and Risk Management

• Profitability Affected by Climate: Changes in climate conditions have reduced annual profits by an estimated 23% over the past two decades, particularly impacting cropping farms.
• Adaptation Strategies: Farmers employ various strategies to manage risks from climate variability, including diversification and maintaining strong financial positions.

Employment Dynamics

Seasonal Employment Variations: Use of casual and contract workers is highest during peak seasons, especially in horticulture, with total farm employment estimated around 368,000 when including non-resident workers.

Financial Performance and Farm Incomes

• Overall Trends: Recent years saw strong growth in farm incomes across many sectors, but variations exist with some industries facing declines.
• Investment in Research: Ongoing investment in agricultural R&D is essential for sustaining productivity and enhancing resilience to external pressures.

Biosecurity Challenges

• Threats to Agriculture: Biosecurity is critical to protect against pest and disease incursions, with current challenges including outbreaks affecting pollinators and livestock.
• Economic Value of Biosecurity: The net present value of Australia’s biosecurity system is estimated at $314 billion, significantly benefiting the agricultural sector.

Future Outlook

• Growing Demand for Sustainability: Increasing global emphasis on sustainability and emissions reduction is prompting changes in policy, such as mandatory climate reporting that began in 2025.

• Pathways for Emissions Reduction: Australia’s agricultural sector faces pressure to innovate and reduce emissions, underlined by shifting global market demands for less environmentally impactful practices.

Download the Full Snapshot of Agriculture 2025 by ABARES here