Ag sector thrives despite year like no other

Our governments moved rapidly as more and more cases were reported across the country, implementing the restrictions on gatherings we've all been navigating for the past 12 months.

Things were changing so rapidly, it was hard to keep up. Country shows and large-scale events like the South East Field Days had to be cancelled at what felt like the eleventh hour. The SA Stud Merino Expo at Burra - which was held this week, showing how things have come full circle in many ways - just scraped through in 2020.

What followed was a year like no other - our economy suffered, a huge number of people lost their jobs or were stood down, leaving them relying on government assistance such as JobKeeper or JobSeeker.

Yet through all of this, Australian agriculture hasn't just survived, it has thrived. That's not to say there aren't plenty of businesses that served the restaurant and food service trade, or relied heavily on air freight to export their goods, that haven't done it incredibly tough in the past year.

Related reading: Upbeat farmers plan big year of spending

But besides those making face masks, hand sanitiser and toilet paper, how many other sectors have begun 2021 with such a bright outlook?

According to Rabobank's Rural Confidence Survey, 43 per cent of SA producers surveyed were expecting their gross farm income to rise, while a further 41pc expected a similar financial result to last year.

Farmers with mixed operations are feeling particularly optimistic, with 59pc anticipating an increase in income.

In good news for the broader agribusiness sector, this confidence looks likely to translate into increased buying activity. A third of SA farmers want to increase their investment in the sector - mostly in on-farm infrastructure and new machinery - in the coming year, while 61pc plan to maintain present levels of investment.

The nationwide optimism surrounding agriculture has been evident in recent land sales, with prices continuing to gain ground. Competition from neighbours helped a 39-hectare block at Curramulka sell for an incredible $23,590/ha at auction recently, while several land price records have also tumbled in Western Vic in the past month.

Let's hope this air of positivity continues throughout 2021, especially as we start looking skyward for rain in the coming weeks.