Australia’s Farm Sector Positioned for Sustainable Growth and Global Competitiveness

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Australia’s agricultural sector continues to demonstrate strong growth, adaptability and resilience, positioning itself well to benefit from the transition to a net zero economy, according to the latest Snapshot of Australian Agriculture 2026 Insights report released by ABARES.

The report shows that Australia’s agriculture, fisheries and forestry industries have expanded by 45% over the past two decades. In real terms, the total value of the sector increased from AUD 69.3 billion in 2004–05 to AUD 100.3 billion in 2024–25, underscoring its long-term growth trajectory.

Production values reached their third-highest level on record in real terms in 2024–25, reflecting the sector’s ongoing strength. According to ABARES, this performance highlights the industry’s capacity to respond to a range of challenges, including climate variability, slower productivity growth and global trade uncertainty.

A key factor behind recent growth has been strong livestock and livestock product prices. In addition, Australia’s agricultural, fisheries and forestry exports were valued at AUD 80.2 billion in real terms in the last financial year, reinforcing the sector’s importance to the national economy.

International trade remains a central pillar of the industry. China and the United States continue to be Australia’s largest export destinations, accounting for approximately 21% (AUD 17 billion) and 12% (AUD 9.3 billion) respectively of total export value.

Beyond export markets, structural changes are also taking place domestically. As net zero policies advance, carbon sequestration is expected to become a more significant component of land use. While this may reduce the area available for traditional farming in some cases, ABARES notes that it is unlikely to constrain overall agricultural growth.

Carbon sequestration is also identified as a major economic opportunity, with the potential to generate billions of dollars in additional revenue for farmers, support on-farm diversification and contribute to a lower-cost transition toward net zero emissions across the broader economy.

The report highlights that sustainability practices are already widely adopted. Over the three years to 2023–24, around 92% of broadacre and dairy farms implemented at least one natural resource management practice. Looking ahead, 18% of these farms plan to introduce at least one new on-farm activity within the next two years aimed at managing natural resources or reducing net emissions.

Productivity trends further reinforce the sector’s strong performance. Agriculture continues to outperform the broader Australian economy, with cropping industry productivity growing at an average annual rate of 1.6% between 1977–78 and 2023–24. Over the same period, productivity growth in specialist sheep and beef industries averaged 0.5% and 0.6% per year, respectively.

Overall, the findings point to an agricultural sector that remains economically robust, increasingly sustainable and well positioned to adapt to both domestic policy shifts and evolving global market conditions.