Livestock lifts ag forecast to third greatest on record for 2025-26

Australia’s agricultural sector is on track for another strong year, with the total value of production in 2025-26 forecast to be the third highest on record at $91 billion, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Including fisheries and forestry, the sector is expected to reach $98 billion.

ABARES Executive Director Dr Jared Greenville said livestock and livestock products were a key driver of this strength, with the industry projected to hit a record value of $40 billion.

“While this is slightly down on an exceptional 2024-25, particularly strong results are forecast for livestock and livestock products – expected to reach a new record value of $40 billion,” Dr Greenville said.

Demand for red meat remains high, supporting both strong export volumes and rising prices. As a result, the total value of meat exports is expected to reach $22 billion this financial year.

“Agricultural exports are also looking healthy next year, with the value forecast to remain relatively steady at $72 billion – or $77 billion if we include fisheries and forestry,” Dr Greenville said.

While livestock is leading the charge, the cropping sector is also posting solid figures. National winter crop production in 2024-25 is estimated to have increased to 59.8 million tonnes, 27% above the 10-year average and the third largest on record. However, summer crop production is expected to ease slightly, remaining 28% above the 10-year average at 4.7 million tonnes.

“Conditions for winter crops were favourable across most of New South Wales and Queensland with timely rainfall in Western Australia. However, both Victoria and South Australia faced poor seasonal conditions resulting in lower crop yields,” Dr Greenville said.

With strong livestock prices and increased crop production, farm financial performance is on an upward trajectory. National broadacre farm cash income is forecast to rise by $89,000 in 2024-25, jumping from $124,000 to $213,000.

“Next financial year average farm incomes are expected to increase further, to $262,000 per farm as input costs ease and higher prices support both crop and livestock receipts,” Dr Greenville said.

However, not all regions have had smooth sailing. Dry conditions in South Australia and Victoria led to below-average farm financial performance in 2024-25. Dr Greenville said these states were beginning to turn a corner, with improving climate conditions expected to boost production and profitability next year.