The Commonwealth Bank’s latest Agri Insights report released in May shows continued strong investment intentions across Australian farming operations. Source: AFDJ eNews
The Agri Insights Index continues to be positive, shifting only slightly over the past six months and remains positive at 9.5 points.
The index is influenced by strong investment intentions across fixed infrastructure, technology, and plant and equipment, with this wave of research seeing the strongest plant and equipment investment intentions to date.
The bank says it is also seeing in this current wave of research that fewer farmers intend to look for off-farm employment, while intentions are steady around employee numbers.
Across the commodities, cotton, beef and dairy producers are the most likely to say they’ll increase the scale of their operations, with wool the only sector where expansion intentions are not positive.
This wave, farmers were asked additional questions about their financial management, with the results showing that farmers continue to value the wisdom of their parents when learning about agribusiness.
The survey also shows that farmers have an eye on the bottom line, with budgeting and cash flow management identified as the most important financial skills required to manage their farms.
According to the research physical investment intentions are again strong on almost every measure with plant and equipment investment intentions at their highest levels since the survey was launched in 2014.
Cotton producers have the strongest investment intentions with beef, sugar and diary also strong for the next 12 months.
The New South Wales Agri Insights index is the strongest it has been since the survey was launched in 2014, up 2.3 points since last wave, the highest increase across all states.
Victorian farmers’ investment intentions have eased over the past six months, down 1.9 points since last wave.
The Agri Insights Index for Queensland is currently 5.8. While the index remains positive, it has fallen from last wave, reflecting continued challenging growing conditions still affecting parts of the state.
South Australia’s Agri Insights Index currently sits at 11.6, down slightly from this time six months ago but ahead of the result from this time last year. South Australian farmers are the most likely to increase investment in plant and equipment over the coming 12 months.
Western Australian farmers’ investment intentions have eased over the past six months, back 2.2 points from the last wave.
Tasmania’s Agri Insights Index is the highest in Australia for a second consecutive wave, with strong investment intentions recorded across the board, particularly in financial investment.
The bank’s research is robust, canvassing 1600 Australian farmers about their investment intentions for the coming 12 months across 14 areas of farm operations.
It allows tracking of results in the biannual Agri Insights Index and offers farmers a broader view of the sector, providing current insights and up-to-date industry data that can be shared across the supply chain.
