Australia’s agriculture sector remains on track to be a $100 billion industry by 2030, despite the increased prevalence of natural disasters and other headwinds.
A new report from NAB found that regional and rural based businesses were holding strong and remained cautiously optimistic about the year ahead.
NAB Executive for Regional and Agribusiness Khan Horne said the fourth annual Horizons Report showed key indicators suggested potential economic improvement for regional businesses in 2025.
Mr Horne said back-to-back bumper years were expected for the sector, with ABARES forecasting a $91 billion turnover for the next financial year.
He said if that target was delivered it would be the third highest turnover ever recorded and placed the sector in good position to crack $100 billion over the next five years.
“Even with some economic uncertainty this year, we’re confident our regional and rural businesses are in good shape to deal with – and withstand – the potential headwinds.”
Mr Horne said the report, which combined data from NAB’s regional bankers, specialist teams, and customer surveys, showcased the considerable resilience and optimism of regional Australian businesses as they strived to tackle a myriad of ongoing challenges.
“Those on the land, in country towns and in regional hubs are experts at dealing with the unexpected.
“While Australian agriculture continues to thrive and many regions have experienced bumper harvests and near perfect conditions, we also recognise others are facing a range of specific challenges such as commodity price fluctuations, tough trading conditions and the escalating toll of severe weather events.”
He said the report also found regional property valuations had soared with a 5.3 percent annual growth, outpacing the 2.6 percent increase recorded in metropolitan areas.
“By April 2025, the median value hit a new peak of $673,373 – a staggering 59 percent increase on pre-COVID prices – driven by ongoing internal migration and the perceived lifestyle benefits of regional living.”
Read the full 2025 Regional & Agribusiness Horizons Report.
