The National Farmers' Federation (NFF) has acknowledged the Fair Work Commission's decision to increase the National Minimum Wage and modern award rates by 3.5 per cent.
NFF Chief Executive Troy Williams said that while the Commission had adopted a measured approach, albeit with an outcome a little higher that employers may have wanted, it is critical that future wage increases are underpinned by genuine and long-term improvements in workforce productivity.
"Australian farmers continue to face rising input costs, acute workforce shortages, and significant exposure to global market volatility," Mr Williams said.
"As price takers, farm businesses have limited capacity to absorb higher labour costs without a corresponding uplift in productivity. Without this link, wage growth risks undermining the viability of many small and family-run farm operations."
NFF emphasises that lifting productivity is central to the agricultural sector's long-term vision.
"The NFF's 2030 Roadmap sets an ambitious target to grow Australia's farmgate output to $100 billion by the end of this decade. Achieving that goal relies on smart investments, technology adoption, and a workforce framework that rewards performance and drives efficiency," Mr Williams said.
NFF believes that the Fair Work Commission must continue to ensure that wage decisions reflect productivity trends and regional conditions to protect rural employment and business sustainability.
"Real wage growth must be earned through real on farm productivity gains. That's how we ensure fairness for workers and resilience for the farming sector," Mr Williams said. The NFF will continue to advocate for a balanced wage-setting system that sustains the economic health of Australian agriculture while supporting its people.
