Australian agriculture is set for its third highest output on record in 2025-26, according to ABARES figures
The combined value of agricultural, fisheries and forestry output in the next financial year is tipped to reach $98 billion.
These figures come from the Australian Bureau of Agricultural and Resource Economics and Sciences’ latest agricultural outlook and would mark the third highest national total ever posted.
Agriculture alone would account for $91 billion of this output, which would represent a $1 billion drop from the predicted 2024-25 output.
This comparative 2024-25 figure has been revised upwards from previous forecasts however, with a rise in crop production volumes and livestock prices leading ABARES to increase its original 2024-25 predictions from $88.4 billion up to $92 billion.
ABARES is also tipping a significant rise in average broadacre farm profits during the 2025-26 financial year.
Higher commodity prices and easing input costs are predicted to create an average broadacre profit of $110,000 in 2025-26, which is a steep jump from the $33,000 average expected in 2024-25.
While the profits only related to the 2025-26 financial year, the average farm cash income is expected to see a rise across the two years, although parts of Australia experiencing drought are not tipped to see the same immediate benefits.
“On average, national broadacre farm cash income is forecast to rise by $89,000 in 2024-25 from $124,000 to $213,000, mostly driven by higher livestock prices and greater crop production,” ABARES executive director Jared Greenville says.
“Next financial year average farm incomes are expected to increase further, to $262,000 per farm as input costs ease and higher prices support both crop and livestock receipts.
“That said, dry conditions in parts of South Australia and Victoria led to below-average farm financial performance in 2024-25 in those regions, but they are turning a corner.
“Improving climate conditions in these states are expected to lift production and profitability next financial year.”
Livestock production values are also forecast to hit a new record as strong global demand supports prices.
Greenville says livestock will be a key driver of a strong 2025-26 for Australian agriculture, along with “healthy” overall exports.
“While [the overall output] is slightly down on an exceptional 2024-25, particularly strong results are forecast for livestock and livestock products – expected to reach a new record value of $40 billion,” Greenville says.
“Demand for red meat is reflected in both strong export volumes and rising export prices, which has led to the total value of meat exports expected to hit $22 billion this financial year.
“Agricultural exports are also looking healthy next year, with the value forecast to remain relatively steady at $72 billion – or $77 billion if we include fisheries and forestry.”
Global crop prices are expected to rise in 2025-26, reflecting tightening global supply, while “return to neutral seasonal conditions relative to 2024-25” is expected to result in lower crop production volumes.
Both Australia’s summer and winter crops during 2024-25 are estimated to be well above the 10-year average.
“On the cropping front this year, national winter crop production is estimated to have increased to 59.8 million tonnes in 2024-25, 27 per cent above the 10-year average and the third largest on record,” Greenville says.
“Summer crop production is predicted to fall slightly in 2024-25 but will remain 28 per cent above the 10-year average at 4.7 million tonnes.”
The gross value of wheat production – Australia’s largest crop – is tipped to fall by 8 per cent in 2025-26 to $10.4 billion, driven by lower production.
Australian wheat production is still expected to remain above the historical average in 2025-26, with the value and volume of wheat exports also tipping to remain above average.