Damon Mcknight
Australia has a diverse agricultural sector, with a variety of crop and livestock products. The industry employs a significant number of people, with an average of 274,900 workers in the four quarters to November 2024, according to the Australian Bureau of Statistics. While farming can be lucrative, with an average annual salary of $68,281, it is also Australia's most dangerous occupation, with 55 farmer deaths in 2022. In recent years, Australian farmers have faced challenges such as severe droughts and rising costs, with incomes for specialist sheep farms declining. However, there are also positive indicators, such as the increase in foreign investment in Australian agricultural land and the strong sustainability credentials of the sector.
| Characteristics | Values |
|---|---|
| Number of people employed in the Australian agricultural sector | 274,900 on average over the four quarters to November 2024 |
| Number of agricultural businesses in Australia | 87,800 as of June 2022 |
| Average farm cash income for the 3 years to 2023–24 | 50% lower than the average for the previous 10 years |
| Average annual salary of farm workers | $68,281 |
| Number of dairy farms in Australia | 4,502 (5% of Australian farm businesses) |
| Average farm cash income for dairy farms in 2022–23 | $461,000 per farm |
| Average size of dairy herds in Australia | 534 in 2022–23 |
| Annual volume of milk produced per farm in Australia | 1.86 million litres per farm |
| Number of GM crops approved to be grown in Australia | 4 (cotton, safflower, carnations, and canola) |
| Percentage of cotton growers in Australia that use GM cotton | 99.5% |
| Percentage of Australian agricultural land in foreign ownership | 13.8% |
| Number of farmer deaths in Australia in 2022 | 55 |
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What You'll Learn
Farm worker salary
According to one source, the average farm worker salary in Australia is $64,220 per year or $32.93 per hour. Entry-level positions start at $57,223 per year, while most experienced workers make up to $77,000 per year. Another source, updated more recently, gives the average salary for a farm worker as $68,281 per year.
There is variation in farm worker salaries depending on the type of farm. For example, a beef cattle farm worker role in Rosa Brook, WA, is advertised with a salary of between $74,000 and $78,000 per year. A poultry maintenance person role at McLean Farms is advertised with a salary of between $63,000 and $70,000 per year.
The average farm salary in Australia is $74,002 per year or $37.95 per hour, according to one source. Entry-level positions start at $60,000 per year, while experienced workers can make up to $118,360 per year. However, this figure may include salaries for positions other than farm workers, such as farm operators.
Agriculture is a significant employer in Australia, with the sector employing 274,900 people on average over the four quarters to November 2024. This figure is up 6.7% from the previous year but down 1.8% from a decade earlier.
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Dairy farm performance
Dairy farms account for around 5% of all Australian farm businesses. The average farm cash income for dairy farms in 2022-23 was $461,000 per farm, a 34% increase from the previous year. This was driven by a 20% increase in average farmgate milk prices. However, milk production per farm fell by 5% due to adverse flood and wet weather events, which also reduced the quality of feed. Dairy farm incomes are estimated to have declined by around 4% in 2023-24, with the average farm now earning $444,000.
The financial performance of dairy farms varies substantially between regions, reflecting differences in seasonal conditions, markets, and industry structure. For example, dairy farms in subtropical climates, New South Wales, and Western Australia reported below-average seasonal conditions in 2018-19 and 2019-20. In contrast, farms in other regions reported a mix of above-average and below-average conditions.
Dairy farms have substantial holdings of liquid assets relative to farm income, allowing them to withstand short-term downturns. Small dairy farms derive nearly 30% of their total income from non-farm sources, compared to less than 2% on very large dairy farms. The average rate of return (excluding capital appreciation) for dairy farms was 4.9% in 2022-23, more than double the average of the preceding 10 years (2.4%).
Australia's agricultural sector has strong sustainability credentials, with world-best practices in chemical and fertiliser use. Australian agriculture's application of nitrogen fertiliser, for instance, is far lower than that of countries like the Netherlands, France, and the United States. Most Australian farms also employ sustainable land practices, such as stubble retention, minimised tillage, and optimised pesticide and fertiliser use.
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Sustainable land practices
Farm sustainability in Australia is deeply ingrained in the national ethos, with a focus on preserving natural resources, supporting rural communities, and ensuring food security. Australian farmers are dedicated stewards of the land, implementing sustainable practices to protect the environment and enhance the long-term viability of their operations.
One key aspect of sustainable land practices in Australia is the efficient management of water resources. Water management is a significant issue in Australia due to over-allocation and increasing variability. Farmers employ strategies such as water-efficient irrigation techniques and soil conservation methods to optimise water use and prevent water erosion.
Soil health and fertility are also critical components of sustainable land practices. Farmers utilise conservation tillage, cover cropping, and rotational grazing to reduce soil erosion, increase organic matter, and improve nutrient retention. No-till farming limits soil disturbance, promoting soil structure stability and carbon sequestration. Additionally, agroforestry, which combines trees with crops and livestock, helps to sustain soil and water resources while also supporting biodiversity.
Australian farmers also focus on biodiversity conservation, implementing projects such as habitat restoration and wildlife-friendly farming. These initiatives create diversified landscapes that support local fauna and plants, with wildlife corridors and buffer zones reducing habitat fragmentation and enhancing species resilience.
By adopting sustainable land practices, Australian farmers not only protect the environment but also enhance the resilience and productivity of their operations. These practices contribute to long-term food security, conserve natural resources, and combat climate change, ensuring a sustainable future for Australian agriculture.
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Foreign ownership
In 2018, China emerged as Australia's second-largest agricultural landholder, with 9.1 million hectares or 2.3% of the total farmland. This placed it behind Britain, which held 2.6%, and ahead of the US, with 0.7%. Combined with other nations, about 13.4% of Australian farmland, or 52.6 million hectares, had some level of foreign ownership interest. NSW and Victoria continued to attract the most offshore investor involvement, with 13.6% and 9.4% of their farms holding foreign investment, respectively.
The debate surrounding foreign ownership of Australian farmland is complex and multifaceted. Some argue that foreign investment is essential to the future of Australian farming. They contend that it helps bridge the gap between savings and investment, fosters better access to international markets, and prompts policymakers to address issues that would otherwise be neglected, ultimately improving the business environment for farmers. Additionally, foreign investment can bring new perspectives and recognition to the sector, with institutional investors and pension funds from North America and Europe recognising agriculture as a legitimate asset class.
On the other hand, there are concerns about the impact of foreign ownership on Australian farmers. Critics worry that overseas investors might unfairly leverage their market power to the detriment of local farmers. There is also a lack of transparency, as Australia does not maintain a comprehensive register of foreign farmland ownership, making informed decision-making challenging. Despite these concerns, banning foreign ownership may not be a panacea. The Australian government must address broader issues, such as tax liabilities and ensuring a level playing field for Australian and overseas companies.
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Government drought policy
Australia's government and community have a long history of drought policy. In the middle of the 20th century, drought policy focused on attempts to 'drought-proof' agriculture by expanding irrigation. In 1971, government policy shifted to recognize drought as a natural disaster, allowing affected people to receive help through joint Commonwealth-state Natural Disaster Relief and Recovery Arrangements. However, in 1989, drought was removed from these arrangements. This led to the National Drought Policy being announced in 1992.
In 2008, a report titled 'It's About People: Changing Perspectives on Dryness' was released by an Expert Social Panel. This report informed a Productivity Commission review into the economic assessment of drought support measures. The Commission's inquiry report, released in May 2009, found that drought assistance programs did not help farmers improve their self-reliance, preparedness, and climate change management. As a result, the review recommended that drought assistance programs be restructured to help farmers prepare for drought rather than waiting until they are in crisis.
The Australian Government's current approach to drought policy aims to build the country's capacity to withstand drought. This includes supporting farming businesses and communities in preparing for, managing, and recovering from drought. The government is working with farmers, rural communities, states, territories, and various sectors to achieve this. The Drought Plan, informed by previous reviews, public consultation, and stakeholder discussions, outlines how the government intends to deliver on its commitments under the National Drought Agreement.
The drought response framework supports the delivery of ongoing support programs in dry conditions and helps the government consider additional support needs in prolonged and severe drought situations. The Australian Agricultural Drought Indicators integrate climate data and agricultural models to measure and forecast drought impacts on agriculture, taking into account factors such as rainfall, temperature, water balances, commodity prices, and input costs.
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Frequently asked questions
The average salary for a farm worker in Australia is $68,281 per year.
Farming is the most dangerous occupation in Australia. In 2022, 55 farmers died while working. Accidents involving tractors accounted for 20% of deaths, while quad bikes accounted for 14%.
There are several challenges to farming in Australia, including water management issues, drought, and foreign ownership of agricultural land. However, Australian agriculture has strong sustainability credentials, and the sector's chemical and fertiliser use is at world best practice levels.
