F E A T U R E D

REALM Group Australia Newsletter 883

Australian Agricultural Forecast signals a positive outlook for rural property Values in 2025.

Despite challenges and drier conditions in some regions, the agriculture sector is projected to achieve its second-highest production value on record in 2024–25, according to the Australian Bureau of Agricultural and Resource Economics (ABARES)[I], a trend that is also expected to positively impact rural real estate values. 

This news is particularly promising given reports in Australia highlighting a surge in foreign investment, particularly from the US, in Australian agricultural properties in 2025[ii]. 

ABARES forecasts the combined value of the agriculture, fisheries, and forestry sectors to reach $94.3 billion this financial year. “The agriculture sector alone is set to be worth $88.4 billion, up $6 billion from last year,” said Dr Jared Greenville, Executive Director of ABARES. 

“The chief driver of the increase is higher prices for livestock, which has, in turn, driven higher livestock production.

“The gross value of crop production is also forecast to rise by $2.2 billion as higher domestic production more than offsets lower prices on global markets.

“Winter crop production volumes have risen by 16% to a total of 55.1 million tonnes thanks to favourable growing conditions across significant parts of New South Wales, Queensland, and Western Australia.

“Production volumes though in South Australia and Victoria have suffered from poor conditions across the winter cropping season, leading to year-on-year declines in both states.”

There is also good news for Australian red meat exports, which rose significantly in 2023–24 and could reach a new record in 2024–25 due to strong demand from key trading partners such as the US, China, Japan, and the Middle East. In 2024–25, red meat export values should reach record levels for both beef and veal exports (worth $13.9 billion) and sheep meat exports ($5.3 billion). 

This news is sure to grab the interest of local and overseas rural property investors, especially those in the US who were behind Australia’s biggest agricultural property transactions for 2024 which saw more than 265,000 ha change hands for a collective price tag of more than $1.2 billion, according to the report in the Australian[iii]. 

In the year’s highest-value sale, the US Nasdaq-listed Agriculture & Natural Solutions Acquisition Corporation bought the Australian Food & Agriculture Company portfolio for $780 million. This holding spans 13 NSW farms totaling 225,405 ha, including the high-profile Wanganella and Poll Boonoke Merino studs.

The next highest-value sale was in Queensland, where Melbourne-based Warakirri Asset Management, on behalf of US-headquartered Alkira Farms, purchased the 26,855-ha Worral Creek Aggregation for $350 million – it was divested as part of succession planning by its long-time owners.

Travis Wentriro, Network Manager of Raine & Horne Rural, said demand for rural property will also likely strengthen if current rainfall forecasts for 2025 prove accurate and the Reserve Bank starts cutting the official cash rate next month.

“Other issues that will drive rural real estate values in 2025 include the costs of farming and the potential commodity yields from their farms, paddocks, holdings, crops, and herds,” Travis said. 

“We also need to wait and see how US President Donald Trump rolls out his tariffs and the impact these moves have on our major agricultural export markets.”

Over all the prospects are looking good.

WEEKLY AUCTION DATES – 2025

1.) 30^th January 2025 ,  2.) 06^th February 2025 , 3.) 17^th February 2025

Ag Machinery 883

As you all know I have been banging on about autonomous gear for about 15 years it’s becoming an everyday event.

THE TRACTOR and Machinery Association of Australia, Grain Producers Australia, and the Society of Precision Agriculture Australia have announced a three-year partnership as an extension to the period that generated Australia’s first code written to safely expedite the roll-out of autonomous farm machinery.

With input from other organisations, the Code of Practice for Agricultural Mobile Field Machinery with Autonomous Function in Australia was initially released in 2021.

GPA RD&E spokesperson and Victorian grower Andrew Weidemann said the partnership will help to increase the level of awareness and knowledge about the development and use of autonomous machinery for the Australian grains industry and broader farm sector.

“The code was developed to better support the commercial introduction of autonomous tractors and machinery into Australian field-based plant industries to address public-interest matters such as farm safety, which is a key strategic priority for GPA,” Mr Weidemann said.

“Following industry stakeholder consultation, it was finalised in late 2020 and launched by the industry.

“After a period of time dedicated to seeking formal adoption by various state governments, feedback indicates the best approach now is to promote the code as an industry-led initiative.

“This partnership aims to take the code forward and build on this momentum even more to ensure it remains relevant to the pragmatic development and delivery of future initiatives and partnerships aimed at improving the adoption of this technology, and benefits for growers.”

TMA executive director Gary Northover said TMA members were looking forward to working with GPA and SPAA to deliver shared goals and outcomes as autonomous farm machinery becomes more of a commercial reality.

“This partnership will involve several proactive activities including an annual survey of growers to understand how they’re thinking and feeling about this technology, and their awareness of the important role our code plays in supporting its evolution and use,” Mr Northover said.

The partnership will also deliver other communication initiatives and engagement opportunities.

Source: TMA

Input Costs 883

Some Australian farmers are set for a stellar year thanks to a bout of good weather lifting production, robust demand, and a weak Aussie dollar boosting the country’s exports.

Cattle owners are expected to be among the biggest winners in 2025 as a drop in global supply, particularly from the world’s top producer, the United States, lifts beef prices.

Commonwealth Bank’s agriculture economist Dennis Voznesenski said prices would likely bounce back this year if rainfall in the US prompted farmers to rebuild their herds. A severe drought in key cattle regions sent US livestock numbers to their lowest in decades.

If higher rainfall replenishes pastures, it will prompt US farmers to keep cattle on farms to rebuild their herds, reducing slaughter activity and increasing the need for imports. “We could be a big beneficiary here in Australia as beef prices rise,” he added.

Last year, cattle prices fell from a 2023 peak of around $8.50 with the eastern young cattle indicator ending 2024 at $6.84 a kilogram.

The US remains a huge market for Australia, accounting for a quarter of this country’s total beef exports last year. Shipments of Australian beef to the world’s largest economy soared 65 percent in 2024, from the year before.

But cattle farmers will not be the only winners, with the overall value of agriculture expected to climb $6 billion in the 2024-25 financial year to $94.3 billion, according to the Australian Bureau of Agricultural and Resource Economics.

“It is looking like the second-highest production ever, and that’s largely based on an increase in terms of revenue from cropping and livestock,” said Michael Whitehead, director of agribusiness at ANZ.

While agriculture accounts for just 2 percent of Australia’s $2.7 trillion economy, it is a big contributor to exports. Last financial year, the industry brought in $60 billion as more than 70 percent of the agricultural output was exported.

A surprising helping hand has come from a weaker Australian dollar – which makes exports more attractive to overseas buyers – and better-than-feared weather conditions.

The dollar slumped more than 9 percent against the greenback last year and is languishing near five-year lows at around US61.6¢. Meanwhile, the Bureau of Meteorology is expecting above-average rainfall for the next three months.

Wheat

ANZ’s Mr Whitehead said wheat was a crop to watch. That’s because the stock-to-use ratio – that is the amount of grain in storage compared with how much the world uses – dropped to 19 percent, a level only reached three times in the past half a century and an indicator that prices are bound to lift.

He said a trigger could be a supply shock as countries rush to secure grain imports.

CBA’s Mr Voznesenski predicts wheat prices could climb as much as 10 percent this year because of lower output from key export countries including Russia, Ukraine, Europe, and North America, from adverse weather conditions.

Developments in the Russia-Ukraine war are being closely watched as the region accounts for a third of global exports. The analyst cautioned that a truce would weaken global wheat prices, after President-elect Donald Trump vowed to quickly end the war after taking office on January 20.

Rabobank’s head of agricultural commodities Stefan Vogel, meanwhile, is predicting that the global consumption of grains including corn, barley, and wheat will exceed supply this year, boding well for prices.

Dairy

It is a different story for the dairy and wool industries, which are both on the back foot and likely to stay under pressure.

ANZ’s Mr Whitehead anticipates that further reductions in Australian milk production and dairy cattle stock will prompt higher imports as farmers shift to more profitable products such as cheese, beef, or horticulture.

“It is a structural change, the industry is getting smaller,” he said.

A key area to watch is dairy processing. New Zealand-based dairy giant Fonterra is trying to sell its Australian business, a major supplier of milk, and last year, Coles bought two processing plants in Melbourne and Sydney from Canada’s Saputo.

Yet, Rabobank’s Mr Vogel is more optimistic, highlighting that milk prices have held up well. “Maybe they are not as good as one or two years ago, but they are still at very historically good levels,” he said, before adding that Australian dairy farmers were making money.

Wool

Wool, once Australia’s biggest agricultural product, has been a challenging sector for farmers with the arrival of synthetic fibre. Bendigo and Adelaide Bank does not anticipate a bounce in prices this year, largely due to falling demand from China.

And things could get worse should Trump implement his threat of hefty tariffs on the Asian giant.

“If garments manufactured in China and exported to the US attracted a large tariff increase, would that impact Australia wool exports?” asked ANZ’s Mr Whitehead. The economist stressed that locally produced wool has the biggest reliance on China among Australian agricultural commodities

Supporting the agricultural sector to find the funding they need

Please email us with a picture of yourself or a family member in front of your TOWN-SIGN to [email protected]

Women in Ag

REALM Group Australia is a proud supporter of all the women making a difference in agriculture. 

Truly inspiring women in Agriculture each week we will feature women in agriculture from around Australia and globally who are making a difference. 

Please Meet, Ms Su McCluskey

The Special Representative for Australian Agriculture (SRAA), Ms Su McCluskey, traveled to Canada in July 2024, promoting Australian agriculture sustainability credentials and collaboration with Canada.

Ms McCluskey visited Calgary and Ottawa, supported by Matt Worrell, Agriculture Minister Counsellor (Washington DC Post) and a department official.

“Collaboration with Canada helps strengthen Australia’s position on the world stage in international discussions on trade, sustainability, and climate change policy that would affect our industries,” Ms McCluskey said.

“When it comes to trade it must be kept free, fair, and open without protectionism and subsidies, and when it comes to meeting climate change and sustainability targets, ‘one size’ doesn’t fit all countries.

“Canada is a like-minded country to Australia; we work together to promote international agriculture and trade policy allowing countries with different production systems and climates to meet targets in the best way for their local environment.

“From international engagements, we learn how other countries are tackling sustainability challenges—and regularly our counterparts remark on our enviable record of co-design across industry and government - the rest of the world is beginning to realise we are leaders in this space.”

Calgary – big hats and big sustainable beef future

The SRAA started her trip at Calgary Stampede—one of the biggest cattle and beef events on the planet—spending time with Canadian industry and government, and learning the Canadian agricultural mantra ‘stewardship is the mindset; sustainability is the practice.’

She met Senator Robert Black and discussed the importance of soil health. She also met John Barlow, Shadow Minister for Agriculture, Agri-Food and Food Security, and discussed sustainability, market access, and trade, and including farmers as part of the solution to address climate change.

Both Senator Black and Barlow strongly desire Canada to have its own Agriculture Representative position. The SRAA promoted the value of such a position and encouraged its adoption to strengthen our collective international voice along with New Zealand’s Special Agriculture Trade Envoy, Hamish Marr.

Meeting the Nutrien North American Sustainability team, the SRAA discussed sustainability practices between Canada and Australia and learned about their research being conducted in both countries.

The Canadian Cattle Association (CCA) also met the SRAA, with a discussion centered on reducing methane emissions.

Ottawa – Seeding influence and sharing our sustainability framework

At the Grain Growers of Canada Roundtable, the SRAA met industry members across the canola, soy, pulse, and wheat sectors and the Canadian Agri-Food Trade Alliance. Participants were impressed with Australia’s efforts to encourage farmers to commit to sustainability outcomes.

Meeting with Agriculture and Agri-Food Canada (AAFC), the SRAA promoted the Australian Agricultural Sustainability Framework (AASF) and the development of Australia’s Agriculture and Land Sector Plan. It also helped reinforce mutual interests on global agriculture trade issues such as WTO agriculture reform and highlight collaborative efforts to push back on third-country Non-Tariff Measures, such as the European Union Deforestation Regulation.

Updates from the Special Representative for Australian Agriculture

The Special Representative is passionate about Australian agriculture and believes we produce some of the best agricultural products in the world in our own unique environment.

Her role is to promote this internationally, demonstrating our production practices to trading partners and advocating for a no-one-size-fits-all approach to climate-smart sustainable agriculture policy.

A key outcome of this advocacy is to bring information gained overseas back to Australia; to share with Australian industry, universities, NGOs, and businesses to ensure they have the latest information to be prepared for changing global requirements.

Please send us your story a brief overview and a couple of pictures and we will be in touch. Email us at [email protected]

AG Dogs of The Week

Meet Rex and Blue

Both these dogs belong to Gary Quirk our Affiliate from Murphy’s Creek Queensland.

Please send us pictures of your Dogs to [email protected]

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