Australia agricultural production faces profit decline despite strong harvest

Australian agriculture ABARES farmgate production El Nino input costs

Unexpected winter rainfall in Southern Australia has bolstered farmgate production despite the onset of an El Nino weather pattern. Australia is currently on track to produce its fourth largest winter harvest on record, estimated at 61 million tonnes, defying earlier concerns regarding fertiliser shortages and rising operational costs.

However, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reports that agricultural production value is expected to decline to approximately $99.4 billion in 2026-27, down from a record $104.6 billion in the previous financial year.

Profitability remains a significant concern for farmers. Average broadacre business profits are projected to fall by 39%, or $86,000 in real terms, dropping from $219,000 last financial year to $133,000. This decline is driven by high input costs, including a 26 per cent jump in agricultural fuel prices due to conflict in the Persian Gulf and a 16 per cent average increase in fertiliser costs. Broadacre farm costs are expected to remain high, averaging $734,000 per farm in 2026-27.

Entities

Australia · Australian Bureau of Agricultural and Resource Economics and Sciences

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] Broadacre farm costs are expected to average $734,000 per farm in 2026-27. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au
[● 3 SOURCES] Agricultural fuel prices increased by 26 per cent due to conflict in the Persian Gulf. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au
[● 3 SOURCES] Average broadacre business profits are expected to fall 39%, or $86,000 in real terms, from the previous financial year. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au
[● 3 SOURCES] Australian agricultural production is projected to reach approximately $99.4 billion in 2026-27. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au
[● 3 SOURCES] Fertiliser costs rose by an average of 16 per cent in 2025-26 compared to the prior year. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au
[● 3 SOURCES] Australia is on track to produce its fourth largest winter harvest on record, totaling 61 million tonnes. www.northqueenslandregister.com.au · www.theland.com.au · www.farmonline.com.au

Sources

Surprise El Nino year rain helps farmers weather $734,000 input cost storm [www.northqueenslandregister.com.au]

11 days ago

'Summer rain can be a pain': heavy falls still possible despite dry prediction [www.areanews.com.au]

10 days ago

Surprise El Nino year rain helps farmers weather $734,000 input cost storm [www.stockjournal.com.au]

11 days ago

Surprise El Nino year rain helps farmers weather $734,000 input cost storm [www.theland.com.au]

11 days ago

'Summer rain can be a pain': heavy falls still possible despite dry prediction [www.dailyadvertiser.com.au]

10 days ago

Surprise El Nino year rain helps farmers weather $734,000 input cost storm [www.farmonline.com.au]

11 days ago