Australian Farm Productivity: Victorian cropping farmers leading the nation

Victoria has emerged as the top performer in broadacre farming productivity, despite a nationwide slowdown in growth over the past two decades.

Victoria has emerged as Australia’s top performer in broadacre farming productivity, despite a nationwide slowdown in growth over the past two decades.

New figures from the Australian Bureau of Agricultural and Resource Economics and Sciences show Victoria’s cropping output increased 1.9 per cent in 2023-24. Over the same period, the state’s overall broadacre productivity growth hit 1.2 per cent — outpacing NSW and Queensland, which both recorded just 0.7 per cent growth.

Nationally, broadacre productivity has slowed, averaging just 0.6 per cent since 1999-2000. Across all farming sectors, productivity growth averaged 1 per cent in 2023-24 with cropping the strongest performer at 1.6 per cent, ahead of dairy (1.2 per cent) and sheep and beef production (0.6 per cent).

Andrew Russell farms in the North East at Rutherglen. Picture: Yuri Kouzmin

ABARES executive director Dr Jared Greenville said Victoria’s strong result was largely due to favourable seasonal conditions during the year, even as parts of the state and neighbouring South Australia faced more recent challenges.

“We’ve seen a similar multi-speed effect before, with productivity slowing in some regions while others remain strong due to differing seasonal conditions,” he said.

Broadacre productivity growth rates by state (annual per cent):

● Western Australia: 1.5 per cent

● Victoria: 1.2 per cent

● South Australia: 1.2 per cent

● New South Wales: 0.7 per cent

● Queensland: 0.7 per cent

● Tasmania: 0.4 per cent

James Russell and his father, Andrew Russell, farm at Rutherglen in Victoria’s North East and say there was still productivity gains to be made in the grains and cropping industry, especially, but it was important that it didn’t come at a cost to the community.

Cropping farmers showed gains in productivity in 2023 and 2024 but the current conditions are considered challenging. Picture: Yuri Kouzmin

“It is a catch-22 for farmers to grow their business to be more productive and profitable, but at the same time have people in communities and community engagement,” James said.

He said productivity was often associated with economies of scale and large holdings.

“We are seeing farms get bigger, and that leads to productivity, but what does it mean for the community or the local footy club?”

He said while the latest data provided a good metric and farm operations could improve, volunteers were essential in Victoria for sporting groups and the Country Fire Authority.

Andrew attributed the productivity increase, especially for cropping, to soil moisture management, better varieties and research and development.

He said 2023-24 was also a better year season-wise than what was currently being experienced.

Victorian Farmers Federation grains group president Ryan Milgate said the figures related closely to seasonal conditions, adding that farmers were also becoming more efficient.

“We need to be both productive and profitable; it is not necessarily the best crop that is the most profitable,” he said.

Mr Milgate said if the measuring period was looked at right now, it might be a different outcome for overall broadacre and cropping productivity.