Australia's farm output surges toward record $100bn driven by livestock prices
Record livestock prices have propelled agricultural production to an extraordinary level, with a huge boost in farm profits also expected. See the latest figures.
Australia’s forecat value of production this financial is tipped to fall just short of the sector’s $100bn goal.
The nation’s gross value of agricultural production is expected to climb to $99.5bn for 2025-26, according to ABARES latest commodity report.
The forecasted value is set to be the highest in nominal terms and forecast to be the third-highest in real terms, underpinned by a $5.5bn increase in livestock and livestock products, due to strong rises in saleyard prices.
Livestock gross values are expected to reach $46bn, supported by an 18 per cent rise in the value of livestock and livestock product prices.
“Prices have been buoyed by sustained strong global red meat demand and domestic restocking activity, reflecting improved seasonal conditions,” the report said.
“By contrast livestock and livestock product production volumes are expected to fall (down by 4 per cent), as elevated turn-off in recent years has reduced livestock available for slaughter.”
Cattle and calves are expected to record a $3.2bn increase in value with a $1.1bn rise expected for lamb and sheep products.
Milk has seen a $500m increase in the forecasted value, with wool also recording a $300m rise, driven by higher prices for both commodities with production volumes expected to fall.
The nation’s total crop production value is forecast to remain broadly flat, reaching $53.4bn for the financial year to be the second highest result on record in nominal terms, fourth highest in real terms.
Across the sector, the average broadacre farm business profit is forecast to increase to $227,000 per farm – up by 42 per cent or $67,000 in real terms from $160,000 in the 2024–25 year.
The report forecast average cash costs of $732,000 per farm with an average of $1.135m in total cash receipts and $402,000 in cash income.
“The increase in average farm profits in 2025–26 is a result of higher receipts, which on average, are forecast to outweigh an expected increase in farm costs,” the report said.
“Higher receipts are primarily being driven by beef and sheep farms, a result of very high output prices in these industries currently. Average broadacre farm costs are forecast to reach a record level in 2025–26.”
