September 30, 2010
NAB predicts higher Australian farm incomes in 2010-11
The value of Australian farm production is tipped to rise 57% in 2010-11 to AUD9.7billion (US$9.39 billion), according to the National Australian Bank (NAB).
The jump in value for 2010-11 is partly due to the vastly improved season throughout the eastern states, which will drive higher production, particularly for grains, compared to previous drought years.
Added to the increase in production for 2010-11 will be the influence of higher commodity prices, as global markets continue to recover after some very tough years. For 2010-11, NAB has forecast a 34% year-on-year rise in prices for wheat. Livestock producers are also expected to see higher prices in 2010-11, with the EYCI forecast to average 7% higher, with heavy lambs up 5%.
However, along with the higher returns to producers in 2010-11, costs are also expected to increase, with the NAB fertiliser index lifting 3.2% in August.
