Key Issues Shaping Australian Agriculture in 2024 and Beyond
From climate to workforce demands

Climate and workforce demands are giving agriculture a lot to think about in 2024 – and beyond.

Australian agriculture was expected to contribute $78 billion to the nation’s economy in 2023/24, the third highest result on record, with expectations of an $85 billion-plus result in the coming year[1]. However, this impressive growth faces ongoing challenges and opportunities shaped by climate change, technology advancements, and the ongoing labour shortage.

At Seftons, our work in rural and regional Australia regularly involves working and collaborating with the ag sector, which provides valuable insights into the sector’s evolving priorities. A few of the key issues and priorities we noted this year revolve around climate, technology and labour, and we’ve been impressed by how we’re seeing industry consider not only the challenges around these, but also the opportunities.

Here’s a look at the major themes shaping Australian agriculture today and how the industry is responding to these pressing issues.

Climate Change: Preparing for a New Reality 

In Australia, a changing climate has ramifications for many different industries, but none are feeling the impact more than agriculture. The evidence is there that the nation’s climate is warming, and becoming drier, with the likelihood of more extreme weather-related events like drought and bushfires.

It’s a reality that our agriculture industry is facing head on, with all parts and levels of the industry devising plans and strategies, and implementing changes, to help with the adjustment that’s required to ensure ag stays globally competitive and remains a major contributor to the nation’s economy.

Local government in rural and regional areas with large ag footprints are also getting on the front foot, and Seftons is working with several councils this year on drought resilience plans. The Regional Drought Resilience Planning Program is being rolled out with joint funding from the Federal Government’s Future Drought Fund and the NSW Government, providing support to local government to develop a plan that considers drought resilience beyond water security.  

The councils we worked with were both areas severely impacted by the 2017 to 2020 drought, described as the worst in 100 years, so were keen to take advantage of the program and help prepare their communities better for the next, and inevitable, drought. It was an interesting process that saw us organise, manage and facilitate extensive rounds of community consultation by way of meetings, community ‘pop-up’ sessions and an online survey, producing a final report with some really important findings and recommendations that came directly from the community.

Education programs aimed at securing a stable local ag workforce into the future; schemes to support small business; tree planting and groundcover programs; and community engagement initiatives were among the many ideas. It was inspiring to be part of a community-led process that clearly illustrates people aren’t prepared to just sit and wait for the next natural disaster.

The Southern NSW Drought Resilience Adoption and Innovation Hub is another climate-focused organisation we’ve worked with this year, with the primary focus of supporting farmers and rural communities in the southern NSW region to prepare for and mitigate drought impacts, capitalising on opportunities for recovery from drought. The Hub’s projects have led to tangible benefits in drought preparedness, soil management, water conservation, and community planning, and it’s been a great experience working with the Hub team and their partners to share real-world impact on the ground with a broader audience.

Sustainability and Net Zero Targets: Growing Global Interest in Emissions 

‘Net Zero’ is a term that’s heard everywhere today, and one which will only be spoken louder in the years to come. It’s the ultimate target when it comes to cutting the carbon emissions responsible for climate change. Countries around the world, industries, corporations, businesses, even households are committing to emissions reduction, and this momentum is set to increase as we approach 2030 and 2050; critical timings for many global targets.

Australia’s ag industry, particularly the livestock sector, is keenly aware of its own obligations, with the likes of the Australian red meat industry setting a target to be carbon neutral by 2030 (CN30). Meat and Livestock Australia (MLA) are investing heavily in research, development (R&D) and adoption aims “to enable and empower the red meat industry to achieve the target, reduce operating emissions while maintaining productivity gains”.

At an even more grass-roots level, Seftons has been involved in some inspiring work this year around net zero targets, working with Paraway Pastoral to help promote the Australian sheep and cattle company’s aim of reaching its own net zero target by 2040, as well as committing to helping other farming operations become better informed on how to reach their own climate targets through a number of field days hosted on several of their properties in NSW and Victoria.

Dairy Australia is another organisation we’ve worked with around its commitment to sustainable development and growth. Dairy Australia initiated the Australian Dairy Sustainability Framework in 2012 as a collective effort to define sustainability for the dairy industry, and this year we were pleased to be involved in a comprehensive operations review process of the framework to ensure its responsiveness to the emerging needs and events of a changing world. We also supported the Sustainability Steering Committee and Dairy Australia with delivery of the Australian Dairy Sustainability Framework Consultative Forum 2024.

Reducing emissions through renewable energy has also become a major priority for Australia, the current federal government committing to a sustained roll-out of renewable technologies to start to replace coal-fired power stations as part of the nation’s commitment to a ‘net zero’ aim. Seftons has worked with a number of renewable energy companies in the past few years, assisting to ensure regional and rural communities are informed about opportunities, and are heard and understood in the negotiation phases.

Agricultural Technology: Innovation Driving Productivity

One of the things helping agriculture counter some of the productivity challenges from the likes of climate change is the rapidly evolving ag tech space. Examples include the suite of new precision ag features in tractors, enabling greater efficiencies across the likes of crop production; IoT innovation helping farmers manage critical water assets; and drone technology that provides new perspectives and opportunities for busy farm managers.

Seftons has worked with machinery giant Case IH, and parent company CNH Industrial, for many years, communicating their tech innovation advancements and breakthroughs to farmers across Australia and New Zealand and seeing first-hand the differences their machinery and expertise is having on farm businesses and their productivity.  

This year we also had the pleasure of working with Australian Community Media (ACM) on the promotion of their three biggest field days in Queensland and NSW: AgSmart, FarmFest and AgQuip. Ag tech innovation is a major focus now for field days around the nation, and AgSmart in particular showcases the latest advancements from established companies, and exciting ag start-ups with ideas and solutions aimed at not only tackling the challenges facing today’s farmers, but finding more efficient and effective ways of getting the most out of their operations.

Seftons has also started working with Farmbot this year, an Australian company offering water monitoring and management solutions that are providing farmers with more efficient means of ensuring stock have access to the water they need, as well as the peace of mind that comes with those assurances. Farmbot is now taking their solutions to a global audience and we’re looking forward to being part of that journey and seeing where this innovative company goes in the future.  

Workforce Shortages: The Ongoing Labour Challenge 

Agriculture is one industry dealing with the issues associated with securing workers – and particularly skilled labour – in a competitive employment market. All sectors are grappling with the issues around this, and the concerns were starkly highlighted in this year’s National Farmers’ Priority Survey, jointly produced by the National Farmers’ Federation (NFF) and Seftons, and now in its second year.

The 2024 survey of more than 1,000 of the nation’s primary producers revealed more than 80% were either very concerned or concerned about worker shortages, showing just how tough the industry is finding it to secure the labour it needs. Seftons has worked with industry, and individual companies and businesses, on strategies and activities aimed at assisting recruitment, recognising there’s no easy fix, and that success is reliant on a multi-faceted approach that will not yield results overnight.

We have worked with CNH Industrial, and a number of its individual machinery dealerships, on these kinds of campaigns, and in recent years also collaborated with Agrifutures on its Community Perceptions and Worker Experiences Project that explored the extent of the challenge and opportunity facing Australia’s rural industries when it comes to workforce. This project revealed so many insights, not least of which was the vast amount of work that’s already underway across the industry that are trying to address workforce attraction and retention, particularly for agriculture, fisheries and forestry.

When it came to attracting workers to rural industries, the project showed the challenges included: 

• the perceived limitations of rural living, such as the lack of suitable accommodation, critical infrastructure and educational opportunities;
• perceptions of low pay and how that compared with entry-level roles in more lucrative industries like mining; and
• a lack of flexibility around work hours. 

On the other side of the coin though, it was revealed there were opportunities to leverage the unique and positive aspects of ag, including:

• an alternative to the traditional ‘desk job’;
• the perception of the regions’ ‘healthier’ environment in which to raise a family;
• the high demand for specialty skills, like shearing; and
• the many jobs that were currently available. 

There’s no doubt labour challenges will continue into 2025, and for some time yet, but agriculture is certainly not alone when it comes to this dilemma – other industries are feeling the pain as well. Through our work in this space, we believe that by leveraging the opportunities listed above, continuing to advocate for investment in our regions to enhance their ‘liveability’, and raising awareness among our young people about the career paths ag offers, the sector can make inroads into attracting the workforce it needs to fulfil its promise of generating ‘$100 billion by 2030’.

Working together for a stronger future

Seftons is happy to discuss our experience with assisting the agricultural industry and stakeholders with their priorities and projects, and any current challenges. You can reach out to our Consulting Director, Jayne Goldring at jayne.goldring@seftons.com.au.