FOLLOWING news last week of Australia’s bumper winter crop, the gross value of Australian farm production is forecast to increase by 6.1 per cent, surpassing $60 billion in 2016–17, according to the latest agricultural commodities report.

Released today by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), acting executive director, Peter Gooday, said the latest forecast would be around 16pc higher than the average of $52 billion over the five years to 2015–16 in nominal terms.

“Export earnings from farm commodities are forecast to increase by 6.7pc to $47.5 billion in 2016–17, following a modest increase of 1.4pc in 2015–16 to $44.6 billion,” Mr Gooday said.

“The gross value of crop production is forecast to increase by 14.7pc to $31.7 billion in 2016–17.

“This is due in part to recent record high winter crop production of 52.4 million tonnes and forecast increases in the gross value of horticulture and cotton production.”

The agricultural commodities for which export earnings are forecast to rise in 2016–17 are wheat (up 25pc), wool (3pc), sugar (23pc), wine (3pc), barley (15pc), cotton (56pc), chickpeas (74pc), lamb (4pc), canola (33pc) and rock lobster (6pc).

The forecast increases in export earnings are expected to be partly offset by forecast falls in beef and veal (down 17pc), live feeder/slaughter cattle (17pc) and mutton (12pc). Export earnings for dairy products are expected to continue on unchanged.

“The gross value of livestock production is forecast to fall by 2pc to $28.5 billion in 2016–17, following an estimated 7.7pc increase in 2015–16,” Mr Gooday said.

Source: ABARES