Australia developed into a prosperous country in the 1900s with agriculture as a mainstay of its economy. Although services and manufacturing now contribute far more to the national income, agriculture is still significant. Farmers provide most of the country’s food and agricultural products are major exports.

Australian agriculture plays a role in the broader economy, provides trends in production, secures farm incomes, enhances industry structure and productivity, sustains climate change impacts and risk management, ensures agricultural employment and trade.

According to the Australian Government Department of Agriculture and Water Resources’ report titled "Snapshot of Australian Agriculture 2024," Australian agriculture accounts for:

• 55% of Australian land use (426 million hectares, excluding timber production, in December 2023)
• 74% of water consumption (9,981 gigalitres used by agriculture in 2021–22)
• 13.6% of goods and services exports in 2022–23
• 2.7% of value added (GDP) and 2.2% of employment in 2022–23

Agriculture and its closely related sectors earn $155 billion a year for a 12% share of GDP. Farmers and graziers own 135,997 farms, covering 61% of Australia's landmass.

The mix of Australian agricultural activity is also determined by climate, water availability, soil type and proximity to markets. For example, livestock grazing is widespread, occurring in most areas of Australia, while cropping and horticulture are generally concentrated in areas relatively close to the coast.

Agricultural Industry

Australia’s farm products are often in demand in North America, Asia and Europe because they are harvested during the Northern Hemisphere’s “off-season” of winter and spring—that is, during Australia’s summer and fall. Australia’s agricultural sector is highly productive despite serious challenges. However, there are vast areas of the country unsuitable for farming. Australia receives less rainfall than any other continent except Antarctica, with an annual average precipitation of about 16.5 inches (42 centimetres).

The high productivity of Australian agriculture can be attributed to the development of new technologies and practices. Advances driving productivity gains have ranged from the use of machinery to improvements in land use efficiency and the adoption of “best practices” for farm management.

Agricultural scientists have produced improved varieties of plants—such as crops that better withstand drought, pests, or disease—through plant breeding and genetic engineering. Likewise, farmers and scientists have bred livestock to develop animals with desired characteristics.

Using more sophisticated farm machinery, such as for the mechanical harvesting of wine grapes, has also improved productivity. Moreover, Australian farmers have increased their use of computers in many applications.

Prosperity through the Australian agricultural sector

On average, around 325,000 people were employed in the Australian agriculture, fisheries and forestry sector over the four quarters leading to August 2021. The majority of these people were employed in horticulture, livestock and cropping. This compares to 304,200 directly employed in agriculture as of 2016-2017.

In 2020, agriculture contributed around 1.9% to the Australian economy. Around 70% of agricultural, fisheries and forestry production is exported. Wheat and beef are the most export-focused sectors. Earnings from agricultural exports have increased significantly over the years, reaching $48.23 billion by 2019-2020.

A glimpse into agriculture and sustainability

The Australian farm sector has backed a target of net-zero emissions by 2050. The National Farmers Federation has stated the importance of tougher climate change policies. This is hardly surprising given that farming is one of the industries most vulnerable to a changing climate. For example, intense drought, flooding and temperature variance have placed extreme pressure on farmers in recent years.

Farmers are actively involved in finding more efficient solutions to practically everything. These practices aim to protect and improve environmental assets such as soil, water, vegetation and biodiversity. Farmers who manage resources naturally are at the forefront of delivering positive environmental outcomes for the country.

This is a vital contribution when protecting the environment is a major concern in Australia and around the world. Sign up to Global Farms today!