Changing farming practices and introducing more innovation will help lift productivity and reduce pressure from rising costs, volatile weather conditions and global uncertainty, Australian farmers say.
Research conducted by Harvard University and the Commonwealth Bank reveals that farmers are increasingly turning to new land and business practices as they seek to improve the long-term financial resilience of their farms.
Commercial returns and profitability are seen as stronger drivers for change than regulatory requirements or consumer pressure; however, farmers are still being held back by complexity, lack of time, paperwork and access to finance, all of which are slowing the pace of adopting innovation.
These challenges sit alongside a backdrop of persistent cost pressures, weather volatility and heightened geopolitical risks. Rising input costs were the most cited immediate concern, with 47 per cent of farmers listing it as their biggest worry, followed by extreme weather and natural disasters at 41 per cent.
Profit expectations remain cautious. Around half of farmers expect profitability to remain stable over the next five years, while around one in four expect profits to fall, outnumbering those who expect an increase.
The findings have emerged from the inaugural Farms in Focus survey, developed by Harvard University in collaboration with CommBank and supported by the National Farmers’ Federation and the Australian Farm Institute. The study engaged farmers across all states and territories to understand the challenges facing Australian agriculture and how farmers are responding.
“Australian farmers are facing major challenges associated with input costs, energy prices, access to export markets, and growing risks from climate change and extreme weather,” said Harvard research leader, Professor Michael Hiscox.
“What stands out is how strongly farmers are responding by adopting new approaches and technologies – some of which can also deliver environmental benefits. Rates of adoption are already quite high, and many farmers are planning to do more over the next couple of years. They are making deliberate, commercial decisions to protect productivity and manage risk.”
Adoption already strong, with more to come
In a strong counterpoint to the pressures they are currently facing, farmers are increasingly open to change, especially in the areas of crop and livestock management, land management, energy and water use.
Almost half of graziers surveyed (46 per cent) have fully or partially adopted rotational grazing, with a further 47 per cent planning to adopt it. Further, 43 per cent of the surveyed croppers have made a start on using variable rate spraying, and 31 per cent are incorporating biofertilisers at some level.
Smaller farms are often leading in adoption, with higher implementation of rotational grazing (47 per cent) and renewable energy (48 per cent).
Nonetheless, the findings reflect an increasingly complex environment that farmers are navigating, said CommBank Executive General Manager for Regional and Agribusiness Banking Kylie Allen.
“The margin for contingency has narrowed considerably for many farmers,” Allen said. “We’ve seen ongoing conflict in the Middle East significantly impact diesel and fertiliser costs, compounding pressure on input prices at a time when cash flows are already tight.”
While intent is strong, the research highlights barriers standing between plans and implementation. Nearly half (49 per cent) of farmers cited administrative complexity as a major challenge, pointing to opportunities for simpler processes and paperwork.
Additionally, 43 per cent cited obtaining financing for the transition as a barrier alongside access to expertise.
More than 30 per cent of the farmers said they needed clearer information on which practices to adopt and the returns they could expect.
“Farmers are already thinking carefully about how to improve resilience and productivity, but many are operating with limited cash flow buffers and rising costs,” Allen said.
“Research like this helps the sector better understand where farmers are feeling the strain, how they are responding, and where targeted support – particularly around finance and extension – can make the biggest difference.
“Despite the current challenges, the results clearly show practice change is now a business decision, with many of these innovations having positive environmental co-benefits. Farmers need added support for tailored implementation and clearer line-of-sight on business returns – including more insights, trusted advice, and more flexible funding. Building that confidence is critical to helping accelerate adoption across the sector.”
About the report
More than 500 farmers engaged in the survey, with 348 providing complete responses used in the analysis. The survey was conducted between 16 November 2025 and 16 March 2026, and included farmers engaged in all types of farming, across all Australian states and territories. The research was led by Harvard University, in collaboration with Commonwealth Bank of Australia, the National Farmers’ Federation and the Australian Farm Institute.
