National Australia Bank (NAB), Media Release, 29 August 2022

Record-breaking cotton production in Australia in 2021-22 is being reflected in the business cash inflows of NAB’s cotton growing customers, the July NAB Economics Data Insights: Agriculture report shows.

The report shows business cash inflows for the bank’s agriculture, forestry and fishing customers continue to grow at a rapid pace, underpinned by a monster winter crop, strong commodity prices, and more recently, a record-breaking cotton bonanza.

NAB Executive Regional and Agribusiness, Julie Rynski, said business cash inflow data to July showed most sectors across most states was well up on 2020 and 2021 levels.

“Our six-week rolling average closed out July up 27% compared to the same time in 2021,” Ms Rynski said.

“The Australian cotton industry has been the single strongest performer, with a combination of high prices and likely record production delivering huge grower returns, especially in New South Wales.

“NSW cotton grower business cash inflows for July 2022 were up 58% on a year ago and 370% on two years ago. Queensland cotton growing incomes were up 48% and 158% respectively.

“With August usually the biggest month for revenue, these results are likely to increase further.”

NAB’s data reflects insights from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) latest Australian Crop Report, which estimates total summer crop production in 2021–22 will reach a new record high.

Production of cotton lint in 2021-22 is estimated to reach a new record of 1.3 million tonnes, supported by high yields and a record planted area.

“Seasonal conditions remain first class, reflecting replenished water storages and good dryland performance,” Ms Rynski said.

“The Australian cotton industry has done remarkably well this season and is likely to enjoy another good season from water in storage. The positive outlook was very evident at the 2022 Australian Cotton Conference earlier this month where I caught up with many of our customers who are buoyed by the return to favourable seasonal conditions after having come through drought and some tough years.”

In Victoria, NAB’s grain growing customers are reaping the benefits of record crop production, with business cash inflows for July 2022 up 39% on a year ago. Business cash inflows for Victorian grain growers peaked in February 2022 and were 117% above the February 2021 level.

Business cash inflows for NAB’s beef cattle customers remain high in Western Australia and South Australia, while in Tasmania, business cash inflows for dairy producers have overtaken inflows of beef producers.