New research from the Commonwealth Bank of Australia has highlighted the commercial pressures shaping farmers’ immediate business decisions.
Access to finance has become one of the main barriers stopping Australian farmers from adopting new practices, according to a new survey from the Commonwealth Bank of Australia (CBA), which highlights the key challenges facing the agriculture industry.
Commercial returns and profitability emerged as stronger drivers of change than regulatory requirements or consumer pressure in the inaugural Farms in Focus report, based on insights from more than 500 farmers across Australia drawn between November 2025 and March 2026.
But funding remains a constraint, with 25 per cent of respondents citing it as a key enabler to support innovation, alongside measures to address complexity, insufficient support, administrative burden, and uncertainty around returns.
The research, conducted by Harvard University in collaboration with CBA, the National Farmers’ Federation, and the Australian Farm Institute, also provided insights into the immediate outlook for Australia’s agricultural producers.
Rising input costs ranked as farmers’ most pressing concern, with almost half (46 per cent) identifying it as their most significant immediate challenge.
Finance costs and debt were also a worry, cited by 31 per cent of respondents.
Meanwhile, profit expectations were subdued, with around half of farmers forecasting stable profitability over the next five years, while one in four said they expect profits to fall.
Harvard research leader Professor Michael Hiscox said Australian farmers are now facing major challenges linked to input costs, energy prices, access to export markets, and rising risks from climate change and extreme weather.
“What stands out is how strongly farmers are responding by adopting new approaches and technologies – some of which can also deliver environmental benefits,” he said.
“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.”
CBA executive general manager for regional and agribusiness banking, Kylie Allen, also noted the challenge of geopolitical tensions and rising input costs.
“Farmers are already thinking carefully about how to improve resilience and productivity, but many are operating with limited cash flow buffers and rising costs,” she 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.”
Supporting life on the land
Speaking to The Adviser, CBA general manager of agribusiness, Roddy Brown, highlighted the importance of flexible finance for farmers, given the cyclical nature of agribusiness, where income and investment are shaped by seasonal conditions, input costs, and global volatility.
“When conditions shift, access to working capital and flexibility becomes essential to help farmers manage cash flow, navigate short-term disruption and continue investing in their business,” he said.
“Flexible financing recognises that variability, it’s not based on a single season’s performance, but supports farmers through both expected and unexpected challenges.
“It also underpins long-term investment, giving farmers the confidence to adopt new practices.”
Brown also reiterated the major bank’s commitment to the agricultural sector.
“That means flexible, tailored lending and working capital to help manage cash flow while continuing to invest for the long term, as well as access to specialist agribusiness bankers who understand the realities on the ground,” he added.
“We also bring together data-led insights and practical expertise to help farmers make informed decisions and manage risk.
“At its core, our focus is on backing farmers with the confidence and capability to invest, adapt and grow over the long term.”
Fuel and fertiliser shock
Farmers are no strangers to challenging conditions; however, access to finance can be one way they navigate these hurdles.
Speaking to The Adviser sister brand Broker Daily, Luke Radford, director of Queensland brokerage Homestead Agribusiness, said the current environment, defined by uneven seasonal conditions and rising input costs, could also present opportunities.
He also said brokers are increasingly prioritising proactive cash flow management and risk mitigation.
“A lot of my clients are trying to get a head on their cash flows and make sure they know where they’re sitting. We can’t control much, so it’s just about being smart about capital,” Radford said.
This has led many clients to make more strategic decisions around capital deployment.
“A few of our guys are just putting development on hold… and being more strategic around where they spend their money,” Radford said.
He also noted that higher commodity prices are providing a potential upside.
“But on the other side of the coin, commodity prices are going up, so if you pull it off, you could end up even better,” Radford said.
“When there’s hardship, there is always opportunity… you’ve just got to be really clear as to what that opportunity means, cash flow wise.”
[Related: Government and banks offer support for Qld flood victims]
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