Farmers hope to expand operations

Farmers throughout Australia are hoping to expand their businesses over the next 12 months, as they intend to increase investment across many aspects of their operations.

This is according to the inaugural Commonwealth Bank Agri Insights report, which asked 1,400 farmers about what they hope to achieve over the coming year.

Almost a third (31 per cent) will increase investment in fixed infrastructure, while 11 per cent are hoping to purchase more plant equipment.

It will therefore be essential for them to reassess their farm insurance to see if the new items are covered, otherwise owners may struggle with the pitfalls of underinsurance.

Farmers were also asked about their financial strategies - 14 per cent said they hope to take on more technology and innovation, as 15 per cent want to increase investment in further education and training.

Geoff Wearne, executive general manager of regional and agribusiness banking at Commonwealth Bank, said it is evident the nation's farmers are focusing on productivity and profitability.

"The overall trend indicates farmers are investing on-farm to improve sustainability and drive growth, with a lesser focus on expanding into new landholdings and off-farm investments," he commented.

Some sectors are set to benefit from increased production over the next 12 months, with horticulture, sugar cane, winter grains and prime lamb among the most popular.

Cotton growers and beef producers, on the other hand, envisage a decline in production in the coming year - although analysts suggest this will not lead to a downturn in these sectors.

Respondents were also questioned over their preparedness for drought conditions, with 69 per cent considering themselves prepared or very prepared should this situation arise.

New South Wales and Queensland emerged as the two areas where farmers were most confident in their abilities to cope with drought.