About 23 percent of farmers plan to invest in plant and equipment within the next year according to the Commonwealth Bank’s Agri Insights survey, which is the highest rate recorded since the study began in 2014.
Infrastructure, plant and equipment, and new technology are the leading investment priorities for Australian farmers, while cotton, beef, sugar and dairy producers are the most likely to be planning to scale up their operations, according to the latest survey.
“There is a continuing trend to increase investment not only in farm essentials like infrastructure, but in innovation and updating technology,” Commonwealth Bank regional and agribusiness executive general manager Geoff Wearne says.
“It is a very encouraging signal that the Australian agribusiness sector continues to focus on driving efficiencies in their businesses to capitalise on market conditions in their sector.”
Another interesting finding shows that Australian farmers get most of their knowledge from their parents when learning how to run a farming business.
About 70 percent of Australian farmers first learn about managing an agribusiness from their parents, according to the survey, even as the sector becomes more complex and globalised.
“The handing down of farm business knowledge remains critical to Australia’s agribusiness sector,” Wearne says.
“This intergenerational link is very strong and is a trait not seen to this extent across other business sectors.
“Our research has shown that parents are key first teachers of farm business across all states and commodity types.”
About 41 percent of farmers find that risk management is the hardest aspect of the business to learn, while 22 percent find staying informed about financial markets to be a big challenge.
“Managing risk is a crucial part of agribusiness, but there are so many variables to consider,” Wearne says.
“Many farmers see the value in developing a deeper understanding of these topics, because they can have a direct impact on their profitability and sustainability.
“Farmers recognise that setting budgets and managing cash flow is a vital part of successful business.”
Commonwealth Bank’s Agri Insights surveys engage with 1,600 farmers on a wide range of farm business topics and are conducted twice a year.
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