Ann: Elders FY21 Full Year Results, page-28

Bumper crops expected in 2022

By Jessica Yun

Australian farmers are gearing up for the biggest harvest ever on record, with the 2021-22 year expected to yield $78 billion in agricultural production and $61 billion in agricultural exports.

Fresh data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) found that Australia’s agriculture sector is being boosted by remarkable growing conditions, downgrades on key competitors, and high commodity prices.

ABARES is predicting a strong harvest and record high prices for food and commodities this year. CREDIT:GRACE QUAST

The $78 billion forecast is an upward revision of $5.4 billion as set out in the September quarter.

Agriculture Minister David Littleproud said production for every major livestock commodity and nearly every major crop was expected to increase.

“Australia is enjoying favourable conditions, with world prices for our produce at their highest in 30 years; it is the first time in half a century that production will increase for so many products at the same time,” said Mr Littleproud.

If the forecasts come to fruition, the 2021-22 financial year will see Australia produce the largest volume of agricultural commodities ever, he added.

However, farmers have been struggling with recent rain and flooding, Mr Littleproud said.

ABARES economists Andrew Cameron and Charley Xia noted that the strong forecasts depended on several factors outside Australia.

“Prices are at multi-year highs for many agricultural commodities,” they wrote in the report.

“Many of the factors driving international prices are driven by poor seasonal conditions, so there is considerable uncertainty how long prices will remain at these levels – posing a risk to the forecast values being realised,” the researchers wrote.

The government is supporting plans to grow the agriculture sector to $100 billion by 2030.