NAB Economics Data Insights: Agriculture
Bumper winter crop predicted to put Australian agriculture on top.
A record-breaking 2020-21 harvest across Australia has been reflected in NAB’s Agribusiness data showing business transactions from grain growers have surged following record production levels.
Released today, the NAB Economics Data Insights: Agriculture report shows transactions for the bank’s agriculture, forestry and fishing customers have been strong following favourable seasonal conditions.
Overall, cash received by customers was up 15% year-on-year in late May while New South Wales grain growers appear to have benefitted, with receipts up 73% in April on a year-on-year basis. NAB Executive Regional and Agribusiness, Julie Rynski, said farmers are poised to capitalise on strong business conditions. “Most farmers have proven to be exceptionally resilient over the last two years through some particularly challenging conditions,” Ms Rynski said.
“The last time we saw cash inflows from our NSW grain growing customers reach similar levels was in January 2017 on the back of the second biggest national crop on record.
“Data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) indicates over 33 million tonnes of wheat was harvested last season.
“This is more than double the previous season and we’re seeing this in action with grain growers across the country recording really strong results.
“The positive outlook is also reflected in ABARES forecasting above average winter crop production in 2021–22, with the area planted to winter crops this year set to reach a record high nationally.
“Sectors that have done it tough through the drought, like NSW cotton, are also showing tentative signs of recovery. However, with big inflows into water storages this year, no doubt we can expect further gains in the coming season.
“Customer transactions by state indicate grain production has also been driving business in Victoria, Western Australia and Queensland since late 2020.
“In South Australia and Western Australia, cash inflows from beef producers remain high and are tracking above grain transactions. In Tasmania, beef production is also the key driver of business.”
Get all the information in the NAB Economics Data Insights: Agriculture report