Australian farmers are planning to invest in infrastructure, technology and education in the next 12 months, according to the Commonwealth Bank Agri Insights report.
The research shows 31 percent of farmers will increase investment in fixed infrastructure and 11 percent in plant and equipment. On the financial side, 41 percent of farmers are intending to increase investment in farm inputs and 14 percent will invest more in farm technology and innovation, while 15 percent will increase investment in further education and training.
Geoff Wearne, executive general manager of regional and agribusiness banking, Commonwealth Bank, said farmers are focused on improving operations to increase productivity and profitability.
"Australian farmers are optimising their operations by upgrading infrastructure and equipment, adopting new farm technologies to increase production efficiencies and increasing their focus on education and training. The overall trend indicates farmers are investing on-farm to improve sustainability and drive growth, with a lesser focus on expanding into new landholdings and off-farm investments," Wearne said.
"We know that irrigation reserves are low in some areas, which will drive a short term contraction in cotton, and seasonal conditions for beef have been very difficult. Survey responses were influenced by these recent conditions but we're confident the long-term outlook for beef and cotton remains positive."
Regional highlights
- Tasmanian farmers (seveN percent) are the most likely to invest in land acquisition over the next year.
- Tasmanian (17 percent) and South Australian (17 percent) farmers have the strongest intentions to invest in plant and equipment over the next year.
- South Australian (20 percent) and Victorian (17 percent) farmers have stronger intentions to invest off-farm than farmers in other states.
- Intentions to increase investment in education and skills are strongest in South Australia (21 percent).