Ag Newsletter - 21 August 2026
Macroeconomics & Ag:
The $100 Billion Milestone: Big Revenue, Squeezed Margins
Australian agriculture has officially smashed its $100 billion production target four years early, with ABARES forecasting farmgate output to reach a record $101.4 billion for the 2025–26 season. While industry leaders and politicians celebrated the headline number at this week's NFF Leaders' Summit in Canberra, the reality tells a much tougher story.
A high gross production value does not equal high bottom-line profitability. For most producers, that top-line revenue is being heavily eroded by the soaring cost of doing business. Over the past few seasons, farmers have absorbed massive spikes in critical input costs—particularly diesel, fertiliser, freight, and machinery. When you combine these expenses with ongoing regional labour shortages, rising interest rates, and volatile export markets, the actual farmgate margins remain incredibly tight. In many cases, producers are turning over more money but keeping less of it.
Despite this heavy margin squeeze, the sector's resilience remains unmatched. Recent ABS business data reveals that while the total number of agricultural enterprises has slightly contracted, the ag sector achieved a 60.2% four-year business survival rate—the highest of any industry in the country.
The real takeaway? The $101.4 billion milestone is a testament to the sheer volume of world-class food and fibre Australia produces. But that 60.2% survival rate is the true indicator of the grit, adaptability, and strict financial discipline required to keep a farm profitable in today's economic climate. Sources: NFF /Beef Central
John Boote
Low Stress Staff Principles:
Getting Out of Your Team’s "Blind Spot" - In Low Stress Stockhandling (LSS), one fundamental rule stands out: animals naturally want to see the source of pressure. If they can’t see what’s moving them, they freeze, get defensive, or break out. The exact same principle applies to managing your farm crew.
Managing from a "blind spot"—where station hands and team members don't understand the plan or the reasoning behind a decision—creates unnecessary tension and high-stress working environments. When your team is forced to guess, momentum grinds to a halt and preventable mistakes happen in the yards.
Clear sightlines equal smooth execution.
To get your team out of the blind spot and keep the day running smoothly:
- Run a 2-minute morning briefing: Align everyone on the daily goals before turning a key or opening a gate.
- Explain the "why": Briefly explain why you’re splitting a mob, changing paddock plans, or shifting priorities.
- Keep communication open: Encourage two-way feedback throughout the day so small issues don't turn into yard breakouts.
When everyone knows the plan and understands their role, safety improves, stress drops, efficiency rises, and the work gets done faster.
👉Watch the full video on Drover Ag's Facebook
Weather & Soil Moisture:
Favourable Southern Soil Reserves - The Department of Agriculture, Fisheries and Forestry (DAFF) released its latest Weekly Australian Climate, Water and Agricultural Update, confirming that recent winter fronts brought 10 to 50 mm of rain across most broadacre cropping regions in Western Australia, South Australia, Victoria, and southern NSW.
While the long-range outlook for September to November indicates an increased probability of below-average rainfall across parts of south-eastern Australia, ABARES notes that strong subsoil moisture profiles across southern growing regions will provide a sufficient buffer to support winter crop finishing, provided forecast spring falls of 25–100 mm materialise. Source: DAFF
Broadacre:
WeedSmart Week 2026 Convenes in the Riverina - Broadacre cropping growers, agronomists, and machinery specialists gathered in Griffith, NSW, for WeedSmart Week 2026, co-funded by the Grains Research and Development Corporation (GRDC).
The three-day forum and field tour focused on herbicide stewardship and practical implementation of the "Big 6" integrated weed management strategies across irrigated and dryland cropping systems. Key sessions evaluated harvest weed seed control technology, mechanical weed control, and rotation strategies designed to combat multi-mode herbicide resistance in ryegrass and wild oats ahead of the 2026 harvest. Source: GRDC Events & WeedSmart
Ready for your next move in ag? Whether you're looking for station management, broadacre cropping, or livestock roles across Australia, explore our active vacancies today.
Upcoming Events: Get Involved
Mark your calendars! Whether you are looking to check out the latest ag-tech or want to get moving with your local community, here are a few upcoming events to get involved in over the next month:
Henty Machinery Field Days 2026
- When: 22–24 September 2026
- Where: 22 Lubkes Road, Henty, NSW
- What to Expect: Join the Drover Ag team at one of Australia's premier agricultural events. Drawing over 60,000 visitors, Henty is the place to be for the newest farm machinery, ag-tech, and rural services.
- More info: hmfd.com.au
Fat Farmers Rural Health Events
Our mates at the Fat Farmers Rural Health Initiative are keeping regional communities moving. Tie up your laces and support physical and mental wellbeing in the bush:
- Run4Resilience – Bonnie Doon (VIC): Sunday, 6 September 2026. A community-focused running and walking event. Choose between a scenic 7km course or a challenging 14km route to push yourself mentally and physically.
- Nuffield Australia National Conference Fun Run (NT): 9–10 September 2026. Partnering with Rabobank, Fat Farmers are hosting free morning fun runs along the Darwin parkrun route for conference attendees.
- City to Bay 2026 (SA): Sunday, 20 September 2026. Join the Fat Farmers crew as they take on South Australia's iconic run down to Glenelg.
- More info & registrations: fatfarmers.com/events-list
Drover Ag Jobs Board
Ready for your next move in ag? Whether you're looking for station management, broadacre cropping, or livestock roles across Australia, explore our active vacancies today.
