Optimistic grain growers are boosting their investment

By Adrian Parker - Commonwealth Bank Australian grain growers produce some of the highest quality crops in the world, using advanced technology and ever-evolving farm practices to drive efficiency and productivity. Our latest edition of Agri Insights shows that grain growers across the country are committed to ongoing investment in their operations, even as wheat prices remain low and the sector continues to face challenge. Key insights include: * 19% of grain growers said they would look to increase their area of land, compared with 9% of farmers overall. * 40% of grain growers said infrastructure, plant and equipment was their biggest area of investment increase last year, and 45% said they would increase investment in this area again this year, compared with 35% of farmers overall. * 45% of grain growers said they would increase investment in technology and innovation, compared with 37% of farmers overall. 20% of grain growers said they would increase the number of employees in their business, compared with 15% of farmers overall. It’s evident from these results that a relatively tough period has not dampened the optimism and future-focus of our Australian croppers. The revived Trans Pacific Partnership has recently been signed and with nearly a fifth of Australian grain being exported to TPP countries, growers will certainly be seeking opportunities that arise from this. The ongoing ‘dining boom’ is also helping fuel these strong investment intentions, as the continued growth in global incomes drives ongoing demand for quality food, and not just meat. It’s clear that against a backdrop of generally lower prices, Australian grain growers are looking ahead and investing strategically. If you’d like to read more, look at the full report here. https://www.commbank.com.au/content/dam/commbank/assets/business/can/agribusiness/agri-insights-grains.pdf