Lyla Lindsey
Despite being mostly arid, Australia is a major agricultural producer and exporter. Agriculture plays a vital role in the country, contributing to its social, economic, and environmental sustainability. There are approximately 85,000 farm businesses in Australia, 99% of which are family-owned and operated. The country's agricultural sector employed 274,900 people on average in 2024, and farmers and grazers own 135,997 farms, covering 61% of Australia's landmass. Australia's agricultural practices have evolved over time, incorporating mechanization, scientific innovations, and technological advancements to enhance productivity and efficiency. However, concerns have been raised about the environmental impact of certain industrial farming practices, prompting discussions about sustainability and animal welfare.
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What You'll Learn
Australia's agricultural workforce
The agricultural workforce in Australia has historically been heavily reliant on international workers. However, the COVID-19 pandemic caused a severe shortage of farm workers, with a significant decrease in the number of backpackers working on farms. This shortage extended into 2021, with skilled labour also in short supply.
In recent decades, Australians have questioned the sustainability of the country's agricultural system, with practices such as intensive monocultural cropping, widespread clearing of native vegetation, and the use of synthetic fertilisers resulting in environmental issues. These practices have led to increasing salinity, loss of biodiversity, and soil exhaustion, threatening future land productivity.
Despite these challenges, Australia remains a major agricultural producer and exporter, with farmers owning 135,997 farms covering 61% of the country's landmass. The success of Australian agriculture is facilitated by policies promoting long-term visions and agricultural reforms, enabling the country to become a significant player in the global market.
The Australian agricultural workforce exhibits high residential mobility, with a rate comparable to that of employees in the overall Australian workforce. This mobility allows for the movement of workers across various regions and industries within the agricultural sector.
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Environmental impact of farming
Agriculture is a significant part of Australia's economy and society, with the country being a major agricultural producer and exporter. However, the industry has also been identified as a contributor to climate change, with livestock production and the use of synthetic fertilisers being major sources of pollution.
Australia's agricultural sector is responsible for producing a lot of climate pollution, particularly through raising livestock. The burping of cows and sheep, for example, contributes to methane emissions, and the production of rice creates around 8-11% of global methane pollution from human activities due to the ideal conditions for methane-producing bacteria in flooded paddy fields. Another source of pollution is the use of nitrogen fertilisers, which release nitrous oxide, a harmful greenhouse gas about 300 times more potent than carbon dioxide.
The impact of these emissions is felt by farmers through more frequent and extreme weather events, including droughts, floods, and fires that damage crops, infrastructure, and rural areas. These events can also impact the price, quality, and reliability of the food supply for all Australians.
Additionally, practices such as intensive monocultural cropping, widespread clearing of native vegetation, and the use of synthetic fertilisers have led to environmental concerns. These practices have resulted in increasing salinity, loss of biodiversity, and soil exhaustion, threatening the future productivity of the land.
However, there are opportunities for Australian farmers to boost profits and reduce climate pollution. Agroforestry, which involves incorporating trees and shrubs into farms, is one such opportunity. Other farming innovations include reducing fertiliser use, diversification into renewable energy, soil carbon sequestration, and regenerative agriculture.
The Australian government has also taken steps to address environmental concerns. Through the Murray Darling Basin Plan, farmers have returned over 2,000 gigalitres of water to the environment annually, mainly through water efficiency measures. Conservation areas have expanded, and 94% of Australian farmers actively undertake natural resource management.
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Livestock farming
Australia is a major agricultural producer and exporter, with around 421,000 people employed in agriculture, forestry, and fishing as of 2023. Australian farmers own 135,997 farms, covering 61% of the country's landmass.
In southern Australia (NSW, Victoria, Tasmania, South Australia, and southwestern Western Australia), beef cattle are often reared on smaller properties as part of a mixed farming or grazing operation. These calves are typically reared on pasture and sold at around two years old or older. Artificial insemination and embryo transfer are more commonly used in stud cattle breeding in Australia. In the Top End, subtropical areas, and arid inland regions, cattle are bred on native pastures on expansive cattle stations. Anna Creek Station in South Australia is the world's largest working cattle station. The North Australian Pastoral Company Pty Limited (NAPCO) is one of Australia's largest beef cattle producers, with a herd of over 180,000 cattle across Queensland and the Northern Territory.
Sheep have historically been one of Australia's most productive exports, with the country "riding on the sheep's back" due to the quality of its merino wool. While wool is no longer a major export, Australian merino wool is still considered the best in the world by the textile industry. Today, sheep producers have shifted their focus to meat, and Australian lamb is sought-after globally.
Farm incomes for livestock farms have been variable in recent years. In 2022-23, the proportion of livestock farms making capital additions declined due to lower farm incomes. However, increased turn-off of cattle and sheep is expected to moderate this decrease. Farm Management Deposits (FMDs) are an important financial risk management tool for many livestock farms, with an estimated 21% of farms holding FMD accounts as of June 2023.
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Crop exports
Australia is a major agricultural exporter, with around 421,000 people employed in agriculture, forestry, and fishing as of 2023. The country's agricultural output was valued at $100 billion annually, contributing 5.7% to its GDP in 2023. Farmers and grazers own 135,997 farms, covering 61% of Australia's landmass. The mix of Australian agricultural activities is determined by climate, water availability, soil type, and proximity to markets. Livestock grazing is widespread, while cropping and horticulture are generally concentrated in areas close to the coast.
Australia has three main agricultural zones. The first is the high-rainfall zone of Tasmania and a narrow coastal strip, primarily used for dairying and beef production. The second is the wheat and sheep zone, where cropping (mainly winter crops) and sheep grazing for wool, lamb, and mutton occur. The third is the pastoral zone, characterised by low rainfall, less fertile soils, and large-scale grazing.
Australia's main crops include sugar cane, wheat, and barley. In recent years, grains, oilseeds, and pulses have been the fastest-growing export segment, with an average annual growth rate of 9% between 2004-05 and 2023-24. Other significant exports include meat, live animals, sugar, wine, and wool.
Australia's agricultural sector has faced various challenges and distortions, including high tariffs, government subsidies, and guaranteed prices, which can increase price volatility and negatively impact farmers' competitiveness. The COVID-19 pandemic also disrupted supply chains, particularly affecting exports to China, Australia's largest export market. Additionally, there is public concern and opposition to the practice of exporting live animals, with scrutiny of animal welfare.
To improve export competitiveness, Australia has negotiated free trade agreements, such as the China-Australia Free Trade Agreement and the Korea-Australia Free Trade Agreement, which reduce tariffs and import duties on Australian agricultural products. Australia is also addressing trade distortions and advocating for a free and fair agricultural trading system through its leadership in the World Trade Organization (WTO) and the Cairns Group.
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Farm ownership
Agriculture is one of Australia's most trade-exposed sectors, with around 421,000 people employed in the industry as of 2023. It accounts for over half of Australia's land use, with farmers and grazers owning 135,997 farms, covering 61% of the country's landmass.
There are approximately 85,681 farm businesses in Australia, 99% of which are family-owned and operated. These farms are highly mechanised, growing crop varieties reliant on synthetic fertilisers, pesticides, and herbicides. They are focused on generating more per hectare through the application of agricultural science, technology, and business practices.
In recent years, Australians have questioned the sustainability of the country's agricultural system, with practices such as intensive monocultural cropping, widespread clearing of native vegetation, and reliance on synthetic fertilisers resulting in significant environmental problems. The agricultural sector has also faced challenges due to the COVID-19 pandemic, with a severe shortage of farm workers and skilled labour.
Despite these challenges, Australia remains a major agricultural producer and exporter, with a diverse range of crop and livestock products. The success of Australian agriculture is facilitated by its policies of long-term visions and promotion of agricultural reforms.
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Frequently asked questions
As of 2023, around 421,000 people were employed in agriculture, forestry and fishing.
Wheat, cotton, rice, tobacco, sugar cane, oilseeds, and various fruits are some of the crops grown in Australia.
Australia has a diverse agricultural sector, with sheep, beef cattle, and grain farming being the largest employer. The country is also known for its wool production, and artificial insemination and embryo transfer techniques are used in stud cattle breeding.
Agriculture in Australia has led to environmental concerns, including increasing salinity, loss of biodiversity, and soil exhaustion. However, farmers have also made efforts to conserve water and manage natural resources.
Agriculture plays a vital role in Australia's economy, contributing to social and economic sustainability. In 2018-19, Australian farmers produced $62.2 billion worth of food and fibre, 79% of which was exported.
