Drought-stricken SA farmers want out as harvest prediction tumbles amid record drought

One of the worst droughts in living memory is forcing farmers from the land... and the economic ramifications for the state are huge.

Broadacre farmers are looking to sell their properties and leave the industry in the wake of a drought which will leave a multi billion dollar hole in the SA economy as grain production falls to its lowest total in 15 years.

Grain Producers SA chief executive Brad Perry said he had heard of “a number of farms” that had been put on the market as their owners looked for an escape for one of the harshest droughts in living memory.

“These are obviously the people who have been doing it tough and this last season has pushed them over the edge,” Mr Perry said. “The problem is that there’s now, because of the drought, not a lot of demand.

“We’ve seen a couple of properties that, anecdotally, there was only one or two bids on – so it’s really dried up at that end as well.

Grain Producers SA chief executive Brad Perry. Picture: Supplied

“It’s a multitude of things that are piling up at the moment and we’re looking at some really tough times.”

Department of Primary Industries and Regions’ latest crop performance summary estimates the state’s grain production for the 2024-25 season will be about 5.2 million tonnes, with a farm gate value of $2.1 billion. This compares with nearly 13 million tonnes valued at $4.8 billion in 2022-23 and 8.7 million tonnes valued at $3.3 billion in 2023-24.

This year’s harvest is 43 per cent below the five-year average and the lowest total since 4.9 million tonnes in 2008-09.

“Regional communities are really hurting because farmers don’t have that money to spend on things like the bakery, the local shops, the mechanics and the machinery dealers,” Mr Perry said.

“We anticipate that’s going to continue for some time. Even if we do get some rain, there’s still going to be that flow-on effect from this one really bad season.

“So even when it rains, there’s going to need to be continuous support on the long-lasting effects of the drought.”

The state government in November announced an $18m drought support package. Mr Perry said many farmers’ were struggling both financially and mentally and both the government and Grain Producers SA would maintain a sharp focus on mental health.

“There’s still a lot of banks working with farmers to do reviews on finance and we are hearing some horror stories about some not being extended cash.

“That’s going to be a real, real challenge if they can’t get support from their bank to even get a crop in the season coming.

“We know that there have been multiple dry years in some parts of South Australia already in the Mid North and on the Eyre Peninsula.

But if there’s a statewide drought for a second year in a row, it’s going to put some real pressure on the resilience of the industry as a whole.”