Ag’s $100 billion target: Farm sector to fall $16b short

Australia’s farm sector will be $16 billion short of reaching its bold target of being a $100b industry unless significant industry and government policy changes occur, a new report has found.

National Farmers' Federation chief executive Tony Mahar. Picture: AAP

AUSTRALIA’S farm sector will be $16 billion short of reaching its bold target of being a $100b industry unless significant industry and government policy changes occur, a new report has found.

The National Farmers’ Federation said Australian agriculture was on track to hit $84.3 billion in farm gate output by 2030.

NFF chief executive officer Tony Mahar said a report card released today highlighted areas that require greater focus from industry and policy makers.

Australian agricultural production must lift by $40 billion on today’s level to hit the $100 billion target.

The sector’s value declined this year to $59 billion, largely due to drought and the impact of international trade tensions on exports.

Mr Mahar said good progress had been made on customers and the value chain, with major new research into community trust and its own promotional campaign.

Cuts to red tape in the value chain had also contributed to a good outcome in the past 12 months.

Mr Mahar said he only gave ‘a pass mark’ to work done by industry and the government in the area of sustainability but commended the Government’s commitment to trialling payments to farmers who protect biodiversity.

It was only just a pass, too, in the area of innovation, which Mr Mahar said was one of the critical determinants in reaching the target.

And much more work was needed in the area of agricultural people and communities, as well as the area of agricultural capital.

Mr Mahar said agriculture and the goal of reaching $100 billion by 2030 was “in a tough class” but there was confidence and optimism the industry could get there.

“We know we’ve got a great industry with many opportunities but we also know we’re going to get stuck along the way, and that’s a challenge we’re facing at the moment,” Mr Mahar said.