Damon Mcknight
Australian agriculture has traditionally been based on family-owned farms, with farms owned and operated by families whose members supply most of the labour involved in running the farm. However, the shift from family-owned farms to large corporations is evident. As of 2021, there are approximately 85,681 farm businesses in Australia, 99% of which are family-owned and run. Each Australian farmer produces enough food each year to feed 600 people, 150 locally and 450 abroad. Australian farms produce around 93% of the total volume of food consumed in Australia.
| Characteristics | Values |
|---|---|
| Number of farm businesses in Australia | 85,681 |
| Percentage of family-owned farms | 99% |
| Number of people directly employed in Australian agriculture | 304,200 |
| Number of jobs provided by the agricultural supply chain | 1.6 million |
| Contribution of the agricultural sector to Australia's GDP | 3% |
| Gross value of Australian farm production in 2016-17 | $60 billion |
| Percentage of exports from total production | 77% |
| Earnings from farm exports in 2016-17 | $44.8 billion |
| Percentage of farmland owned by foreigners | 12% |
| Biggest foreign landholder | British owners (9.7 million hectares) |
| Australian farms owned by Australian businesses | 99% |
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What You'll Learn
Foreigners own 12% of Australian farmland
Australia's agricultural sector is a significant part of the country's economy, contributing 3% to its total Gross Domestic Product (GDP). Australian farmers produce enough food to feed approximately 600 people annually, 150 locally and almost 500 overseas. The agricultural sector, along with the affiliated food and fibre industries, provides over 1.6 million jobs to the Australian economy.
Australian farmers own, manage, and care for 51% of Australia's land mass. In 2022, there was a reported 10% decline in foreign-owned agricultural land, and in 2023, this number fell further by 0.3%. Despite this, foreign investors continue to play a significant role in Australian agriculture.
It is important to note that the statement "Foreigners own 12% of Australian farmland" may be misleading. While it is true that around 48 million hectares of Australian agricultural land are foreign-owned, this includes both wholly foreign-owned properties and those shared under joint ventures or partnerships with Australians. Of these, 36 million hectares are wholly owned by foreigners, while the remaining 11 million hectares are under shared ownership.
Foreign investment in Australian agriculture has its benefits. Mr Barber, as quoted in Grain Central, highlights that foreign capital seeks exposure to Australian agricultural land due to its recognition of the country's agricultural output and quality of management. This has resulted in partnerships and co-investment, often overlooked, that have added value to Australian businesses. For instance, Canadian real estate investment company AIMCo and global investment manager New Forests invested in Macquarie's Lawson Grains, acquiring 90,500 hectares of farmland in New South Wales and Western Australia.
In conclusion, while foreign ownership of Australian farmland exists and has its advantages, the majority of Australian farms (approximately 85,681) are family-owned and operated, with Australian farmers playing a crucial role in the country's economy and environmental sustainability.
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Australian farms produce 93% of food consumed in Australia
Australia's agricultural sector is a significant contributor to the country's economy, with farm exports earning Australia $44.8 billion in 2016-17, a substantial increase from $32.5 billion in 2010-11. Notably, Australian farms produce around 93% of the food consumed within the country. This impressive contribution to domestic food security is largely attributed to the country's approximately 85,681 farm businesses, 99% of which are family-owned and operated. Each Australian farmer produces enough food annually to feed 600 people, highlighting the sector's efficiency and productivity.
The mix of agricultural activities in Australia is influenced by factors such as climate, water availability, soil type, and proximity to markets. Livestock grazing is widespread, occurring in most areas, while cropping and horticulture are typically found in regions relatively close to the coast. Australian farmers own, manage, and care for 51% of the country's land mass, and they have made significant strides in sustainable land management practices. For instance, most broadacre cropping farms retain stubble, minimize tillage, and optimize pesticide and fertilizer use.
The agricultural sector has also embraced technological advancements and innovative management practices, leading to improved productivity and strong volume growth in cropping. Higher prices in the livestock sector have driven growth, reflecting increasing global demand for protein. Additionally, Australian farmers have played a pivotal role in reducing greenhouse gas emissions, with a remarkable 63% reduction in emissions intensity between 1996 and 2016.
While the industrialization of agriculture has raised concerns about sustainability and environmental impact, Australian farmers are actively engaged in sustainable practices. Through the Murray Darling Basin Plan, farmers have returned over 2,000 gigalitres of water to the environment annually, primarily through water efficiency measures. Furthermore, areas managed for conservation have expanded to cover about 18% of Australia's land area. These efforts contribute to maintaining Australia's agricultural competitiveness and ensuring the sector's long-term viability.
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Australian farms export 77% of their produce
Australia's agricultural sector is dominated by family-owned farms, with approximately 85,681 farm businesses in the country, 99% of which are family-owned and operated. These farms play a crucial role in the country's economy, contributing 3% to Australia's total Gross Domestic Product (GDP). The gross value of Australian farm production in 2016-17 was $60 billion, and this number has continued to grow.
Australian farmers have a significant impact on the country's environmental sustainability as well. They own, manage, and care for 51% of Australia's land mass. The agricultural sector has made impressive strides in reducing greenhouse gas emissions, with a 63% reduction between 1996 and 2016. This has been achieved through the adoption of sustainable land practices, such as stubble retention, minimised tillage, and optimised use of pesticides and fertilisers.
The mix of Australian agricultural activities is determined by climate, water availability, soil type, and proximity to markets. Livestock grazing is widespread, occurring in most areas of Australia, while cropping and horticulture are generally concentrated in areas relatively close to the coast. Australian farms have a strong focus on exports, sending abroad about 77% of what they grow and produce. This makes Australia a significant player in the global food trade, with each Australian farmer producing enough food to feed 600 people annually, 150 at home, and 450 overseas.
In the 2022-23 financial year, Australia exported a record-high $80.4 billion in agriculture, fisheries, and forestry products, a 17% increase from the previous year. This success was driven by record crop production, increased global demand for Australian grain due to supply disruptions and higher export prices, and decreasing input costs. China remains Australia's largest single export market, valued at approximately $17 billion in 2022-23. However, the market share of other Asian markets, particularly the fast-growing economies in the Association of Southeast Asian Nations (ASEAN), is also growing, with ASEAN's share of Australia's exports reaching 23% in the same period.
Australian farms' heavy reliance on exports highlights the importance of maintaining access to valuable export markets. The country's biosecurity system plays a crucial role in this regard, reducing the risk of exotic pest and disease incursions. By staying free from many of the world's major pests and diseases, Australian agricultural industries maintain their competitiveness in the global market and protect their productivity.
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Australian farms are reducing greenhouse gas emissions
Australia's agricultural sector is taking significant steps to reduce greenhouse gas emissions and combat climate change. With agriculture accounting for over half of Australia's land use, sustainable land management practices are crucial. Notably, between 1996 and 2016, Australia's primary industries achieved a remarkable 63% reduction in greenhouse gas emissions intensity, demonstrating their commitment to environmental stewardship.
The majority of Australian farms are family-owned and operated, with approximately 85,681 farm businesses in the country, 99% of which are family-run. These farmers are at the forefront of environmental protection, owning and managing 51% of Australia's land mass. They play a vital role in implementing sustainable practices and contributing to the country's economic and environmental well-being.
To reduce emissions, Australian farmers are adopting innovative technologies and management practices. For example, in rice farming, around 60-70% of growers are now employing a different sowing method, delaying the flooding of fields, which has resulted in a substantial reduction in emissions of over 50%. Additionally, farmers are exploring the electrification of their equipment, transitioning from diesel to electric farm vehicles, which offers both environmental and economic benefits.
The agriculture sector in Australia is highly vulnerable to the impacts of climate change, and farmers are already experiencing the consequences through more frequent and extreme weather events. Recognizing this, the sector has embraced the economy-wide target of net-zero emissions by 2050. Some industries, such as red meat, are even more ambitious, aiming to be carbon neutral by 2030.
To further reduce emissions, Australian farmers are optimizing their land use and grazing management systems. Most broadacre cropping farms are retaining stubble, minimizing tillage, and reducing their reliance on pesticides and fertilizers. Livestock farms are adopting various grazing management systems, such as cell, strip, or rotational grazing, to minimize their environmental footprint. These sustainable practices not only benefit the environment but also enhance the productivity and resilience of Australian agriculture.
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Family farms are becoming less family-operated
Family-owned farms account for 96% of US farms, according to the Census of Agriculture Typology Report. In Australia, 99% of approximately 85,681 farm businesses are family-owned and operated. Despite this, family farms are becoming less family-operated.
Small family farms, defined by the US Department of Agriculture (USDA) as a place that produces and sells at least $1,000 of agricultural products per year and has a gross income of $350,000 or less, are the most endangered type of farm. In the US, small farms accounted for less than a quarter of food production in 2020, a significant decrease from nearly half in the 1990s. The agricultural landscape is changing, fueled by technology and increased industrialization, resulting in larger farms. These farms are often owned by faceless multinational corporations, making it harder for small family farmers to compete. They face challenges that threaten their income, reduce their outputs, and damage their mental health.
Small family farms have an operating profit margin of less than 10%, creating a high financial risk when unexpected events occur. Many farming families rely on non-farm income to continue farming. While small family farms have seen their financial risk increase, large and corporate-owned farms have benefited from government payments and assistance programs that favor large-scale farming.
Alternative farming systems, such as those operated by people of color throughout North American history, have proven to be viable and effective at serving the needs of communities. These farms are not measured by their rugged individualism but by how well they provide good food, jobs, and environmental outcomes. As such, we must move beyond our attachment to the small family farm ideal and embrace a more diverse future for farming.
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Frequently asked questions
As of 2021, approximately 99% of Australia's 85,681 farm businesses are family-owned and operated. This amounts to about 84,824 family-owned farms.
The Australian Bureau of Statistics (ABS) estimates that foreigners own about 12% of Australian farmland. British owners are the biggest foreign landholders, with over 9.7 million hectares, followed closely by Chinese landholders.
Australian agriculture has traditionally been based on family-owned farms. However, the consolidation of small farms into larger operations, coupled with smaller family sizes, has led to a decline in the number of family-owned farms. While no recent statistics were found, a 2015 source states that the family farm is becoming less common.
