prices

Australia’s future food and fibre production is being threatened by surging land prices, NSW Farmers says. NSW Farmers Young Farmers Council chair Martin Murray said the price rises meant young people looking to enter the industry will find it harder to get a start.

After steep falls in late 2022 and early 2023, many Australian agricultural commodity prices have stabilised, according to the NAB March Rural Commodities Wrap released on 27 March 2023. While the NAB Rural Commodities Index* was down 1.2% in February, almost all of the downside was driven by falling cattle prices as the industry faces parallel challenges of higher turnoff, processor constraints and tough global conditions.

Australian farmers continue to ride the rollercoaster of seasons, commodity prices and economic factors, with rural sentiment at the start of 2023 dipping to its lowest level reported since late 2018. The latest quarterly Rabobank Rural Confidence Survey, released on 16 March 2023, found after rallying late last year, sentiment in the rural sector had fallen again this quarter as farmers continue to navigate a range of economic and financial uncertainties.

Farm cash income for all broadacre farms is projected to decrease nationally by around 7 per cent to average $327,000 per farm in 2022–23 but remain 46% above the 10-year average ... “However, farm incomes are projected to fall slightly in 2022–23 because of lower prices for most commodities and input costs remaining high after significant increases in 2021–22": Head of Farm Performance at ABARES, Peter Gooday.

Grain Producers Australia’s new survey results show growers faced multiple, significant challenges with producing a near record crop in 2022-23 – especially input costs and extreme weather events. Whilst some analysts forecast the Australian crop size at a huge 71 million tonnes, valued at about $28 billion, Australian grain producers also planted the most expensive crop on record.

Australian agricultural commodity prices have continued to fall in the new year with the NAB Rural Commodities Index* now 14.4% below year-ago levels. Lower beef cattle prices and to a lesser extent, grain prices, are the key drivers of the weakening in the Index, according to the NAB February Rural Commodities Wrap.

Who would have thought that 34 years after the collapse of communism in the USSR and 43 years after the Hawke-Keating government started the process of dismantling Australia’s prices and income regulatory system, that Australia would be back reintroducing a Soviet style price control mechanism that caps gas and coal wholesale prices. Someone has not been reading their economic history. There are no lack of lessons from the past  that point to the unintended consequences of governments intervening in markets in an attempt to address short term political problems.

Trade between Ukraine and Australia is actively developing. The total sales of Australian goods and services are growing faster than Ukrainian ones. Australian farmers are also increasing sales faster than Ukrainian farmers. However, this was not always the case. 2023 may strengthen the position of Ukrainian farmers.

International markets for wool and cotton have seen much volatility through the course of 2022 – with the lingering impacts of Covid and escalated geopolitical and economic uncertainty affecting the trade – and the year ahead could be equally turbulent, agribusiness banking specialist Rabobank says in a new industry podcast.