Agricultural outlook is a positive one for producers on the Northern Rivers, despite spiralling land prices, rapid increases in power costs and imposition over access to irrigation.
At a conference in Casino on Wednesday, chief commodities analyst with Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Peter Gooday, reported a generally good outlook with world growth forecast at 3.9 per cent, the same as last year, the highest since 2011, while China’s growth dropping from 6.6 per cent to 6 per cent would be strong enough to support growth, particularly in emerging Asian countries.
He said that the small family farm is today much less of a contributor to export commodity, with Australian production dominated by small and medium corporate style farms, where labour is on the decline and technological innovation on the rise.
Australia’s farming competition from countries like Brazil is quickly catching up and these rapidly emerging countries pose a challenge to Australia’s position in trade.
He said private funding in research will become ever more important.
Climate change will also force farmers to act, with record drought and heat in key growing areas. For the Northern Rivers the prediction calls for climate stability.
In the Richmond Valley, where land prices have jumped fourfold since the mid 1990s, transactions from farms have also increased, unlike the Tweed, where urban encroachment is stifling agriculture, reported Elders rural lending specialist Sharon Stuckey.
Beef used to be the highest value product on the Northern Rivers but macadamia production has now overtaken that position. Dairy debt, meanwhile, continues to weigh heavy.
Small Northern Rivers’ producers can stay competitive by working on quality and consistency and by marketing their product to higher-end niche markets.