Agriculture hits $100b, but what goes up must come down
Strong demand for Australian beef and a record winter crop have pushed the value of the farming sector to over $100 billion, but tough trading and climate conditions mean the record peak will be short-lived.
According to data released by the Australian Bureau of Agricultural and Resource Economics and Sciences, the gross value of agricultural production is expected to reach a record level of $101.4 billion in 2025/26.
The sector’s goal of reaching 100 billion dollars by 2030 has been going on for a long time.
The initial peak was driven largely by increased beef production to meet strong export demand and the bureau’s second-largest winter crop on record. March quarter report in question.
“This forecast gives Australians 100 billion reasons to thank our farmers, whose hard work, resilience and skills power our national economy,” Agriculture Minister Julie Collins said on Tuesday.
But the forecast warned it would fall by six per cent to $95bn in 2026/27 due to lower livestock prices and the prospect of more modest crops.
Beef export market conditions were expected to become less favorable after China imposed a 55 percent tariff on beef imports above certain quotas in January.
Around 800 million burgers worth of Australian beef may need to be diverted to alternative markets. a separate analysis From Rabobank’s research arm.
The Trump administration also announced new tariffs in February that could affect some Australian products.
While moderate rainfall and mild spring temperatures helped growers produce abundant winter crops, summer harvests were negatively affected by hot and dry January and lack of irrigation water, the report said.
Ms Collins said the government would continue to support farmers.
“As we celebrate this important milestone, we also reaffirm our determination to support our farmers and producers under difficult conditions because we will always be behind them.”
The report stated that in the medium term, the total value of agricultural, fisheries and forestry production is expected to reach 102 billion dollars in the five years until 2030/31.
Some conservationists, scientists and farmers question the government’s focus on the economic benefits of agriculture, especially when considering its national food security strategy.
2025 CSIRO report He warned about the state of Australia’s food system, highlighting that the agricultural economy was “destroying” the goals of sustainability, equity, food security and health.
Hamish McIntyre, chief executive of the National Farmers’ Federation, said the $100 billion target was never about the headline figure.
“It is underpinned by a detailed roadmap that places farmer wellbeing, sustainability and natural capital alongside productivity and profitability,” Mr McIntyre said.
He said the record value was a turning point for the industry.
“This proves that Australian agriculture can compete with the best in the world.”
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