Australian agriculture is growing, adaptable, more productive, and well placed to take advantage of the transition to net zero, according to the latest ABARES Snapshot of Australian Agriculture 2026 Insights paper.
Australian agriculture, fisheries and forestry have grown by 45% in the last 20 years, with an increase in real terms from $69.3 billion in 2004-05 to $100.3 billion in 2024-25.
ABARES executive director Dr Jared Greenville said the industry continued to demonstrate its strength, with the value of production reaching the third highest on record in 2024-25 in real terms.
"The industry is looking really strong at the moment, and it's in a good position to respond to any challenges, like climate variability, slower productivity and global trade uncertainty," Dr Greenville said.
"This has been the real marker of the agricultural sector's success - its ability to change in response to consumer and market conditions, both in Australia and overseas.
"Not only has the total value of production increased, largely on the back of strong livestock and livestock product prices, but last financial year Australia's agricultural, fisheries and forestry exports were valued at $80.2 billion in real terms."
China and the USA are Australia's biggest export markets, accounting for around 21% ($17 billion) and 12% ($9.3 billion) respectively of the value of agricultural, fisheries and forestry exports.
"Outside of international trade, there are changes in the domestic space. As the net zero policy progresses, carbon sequestration will become a bigger part of land use," Dr Greenville said.
"While it will take up part of existing farming land, carbon sequestration is unlikely to impact heavily on a growing agricultural sector.
"Carbon sequestration also presents an opportunity for farmers to earn billions in revenue, provide on-farm diversification, and create a lower-cost transition pathway for the Australian economy.
"This follows an existing trajectory - over the three years to 2023-24, 92% of broadacre and dairy farms used at least one surveyed natural resource management practice.
"There is also interest in expanding the use of these practices - we found 18% of broadacre and dairy farms are expecting to undertake at least one new on-farm activity to manage natural resources or reduce net emissions within the next two years.
"The agricultural sector is also outperforming the rest of the Australian economy on productivity.
"Cropping industry productivity growth was 1.6% per year on average between 1977-78 and 2023-24, while specialist sheep and beef industry productivity was 0.5% and 0.6% respectively."
The ABARES Snapshot of Australian Agriculture 2026 Insights can be read here: https://www.agriculture.gov.au/abares/products/insights/snapshot-of-australian-agriculture
ABARES's Outlook 2026 conference is on 3-4 March. For more details about the program, speakers and registration, visit ABARES Outlook 2026.
