While farming’s appeal as a safe investment option has gained momentum of late, in reality the capital invested in Australian agriculture is barely keeping up with the industry’s asset depreciation.
On current investment trends there is no way Australia can lift annual farm productivity figures to hit its $100 billion goal by 2030.
In fact, it may not get to $100b within 30 years according to a sobering analysis of agriculture’s capital investment requirements and the mood among producers and leading investors.
The study found for every $1b rise in gross value of production, Australia’s primary production sector needed an increase in productive capital of between $1.8b and $5.3b a year.
Achieving the National Farmers Federation’s 2030 farm…