Farmgate produce value tipped at record breaking $73 billion

If we can hold the good luck line on crop returns the farm sector is looking at a record-breaking gross value of production (GVP) of $73 billion in 2021-22

There is nothing but blue sky for grain growers and livestock producers as farmgate value for season 2021-22 is tipped to achieve a $73 billion record result

The strong investment in farming has been paid back handsomely by those setting record breaking farmland values, along with record livestock prices while planting near record crop levels that are expected to return an above average harvest and prices as well.

If all the duck’s line-up in a row, in the middle of the pond, this will be the first time agriculture sector farmgate produce has been valued at over $70 billion.

The basis behind this landmark result is the value of crop production that is set to rise by 7% to $39.5 billion if the predicted record or near-record winter crop harvest comes to fruition.

Very important in this 2021-22 season as a record crop will also reward growers with strong global prices for grain, sugar and cotton.

Livestock producers are also playing their part with the value of production expected to rise above $33.5 billion, for an increase of 8% over last year.

Failure in the overall international market has tipped the scales in our favour, as poor harvests in North America and Europe are pushing up the price of grain worldwide.

As a result of the high volume of domestic production and the high prices on offer for our farm produce it is expected that exports will also hit a record of close to $55 billion from grain and livestock sales in 2021-22.

Of this record figure, it will be crops that exporters’ will not be able to get enough of, with overall growth in this sector set to rise by 17% to $30 billion.

With two good seasons in a row, there is nothing stopping grower and producers from maintaining their strong optimism at the saleyards where record prices for young cattle continue to be set as farmers begin to restock.

Breaking the farmgate gross value of production (GVP) mark over $70 billion for the first time puts the $100 billion production target by 2030 firmly in all farmers sights.

And while our local farmers have clearly beaten off the worst health pandemic in living memory, they will need the strong backing of government to open new markets worldwide to achieve the $100 billion production target.

As we are poised to smash the farmgate production value record at $73 billion we need to take a look at how we have achieved this feat.

If everything is fully realised, we will be up from last year’s production value of $66 billion, and it is worth noting that figure was early on last season predicted to be only $60 billion, but gained much more due to improved seasonal conditions.

Over the last decade farmgate production has grown $26 billion from the $47 billion we achieved in 2011-12. This is a stellar performance despite drought, fire floods and infestations.

Minister for Agriculture and Northern Australia David Littleproud has reassured farmers of his governments support, referring to the forecasts of an 8% increase in the value of production above the 2020/21 record.

“This is remarkable in unprecedented economic times, and plenty of industries in Australia haven’t seen that kind of growth,” Minister Littleproud said.

“We’re looking at our second good year in a row, with a bumper crop harvest, international demand for our produce and a strong market for livestock, underpinned by our Ag 2030 plan to help agriculture trash its $100 billion goal by 2030.

“Not only are we looking at a bumper harvest for winter crop, but there are also higher prices and greater demand for cotton, sugar and grains.

“Two good years in a row have lifted optimism in regional Australia, and this is reflected in the record prices farmers have been willing to pay for restocking cattle.

“It’s not all smooth sailing. COVID-19 continues to provide challenges for international trade, although we are working as a government to do what we gain to boost international trade.

“We have listened to concerns about labour shortages and we are progressing the Agricultural Visa to make sure that we can get the fruit picked and the veggies out of the ground.

“This is a year to be proud of. It shows just how strong the agriculture sector is, despite the uncertainty of a global pandemic.”

“Australians backed our farmers during the tough years of drought we are now seeing those very farmers help the community and economy through and beyond the pandemic.” Minister Littleproud concluded.