Australian wheat harvest is estimated at 30.4 million tons

In a recent report, Australian agricultural commodity specialist IKON estimates that Australia’s three main winter crops will harvest 48.1 million tons, down significantly from last year’s record 65 million tons, but still 3 percent above the five-year average.

IKON forecasts wheat production at 30.4 million tons, down 4 percent from the previous estimate, but well above the latest ABARES  estimate of 26.2 million tons published in June.

IKON estimates new crop barley at 12 million tons, 500,000 tons lower than the current ABARES estimate; canola at 5.7 million tons, 800,000 tons higher than the June ABARES estimate of 4.9 million tons.

“Australian grain prices received support amid expectations of lower yields,” IKON noted.

ABARES executive director Dr. Jared Greenville said about the extremely strong growth of farmland in the country. He noted that the average price of an Australian agricultural hectare has almost doubled over the past three years, increasing by 93% from 2020 to 2023. Fertile land in areas with high rainfall has risen in price the most, increasing by 125% over the past 3 years and amounting to almost $9,000. Land prices in the wheat belt have increased by 80% over the same period to $3,465 per hectare.

Australian farmers are adapting and adjusting production systems to compensate for the negative effects of climate change, said Jared Greenville, emphasizing the special role of science: “On average, 1 dollar invested in public research and development yields about 8 dollars in gross agricultural value added.”

He also noted that “Australia’s almost zero use of agricultural subsidies avoids market distortions that lead to poor environmental outcomes from agriculture. According to our research, compared to other major agricultural producers, Australian farmers use less fertilizer, have a better nutrient balance on their land, and use more sustainable farming practices.”

Tags: wheat, crop forecast, Australia, grain