How are top producers boosting farm profitability despite rising costs
Profitability in a pressure cooker
Rising input costs, climate extremes, and changing consumer demands continue to challenge Australian agriculture. But not every farm is struggling. The 2025 State of the Farmer Report reveals a clear pattern, top-performing producers are still growing profits.
How? By investing in the right tools, refining their operations, and making smart, data-backed decisions across their livestock and grazing enterprises.
What the best Aussie producers are prioritising in 2025
According to the 2025 State of the Farmer Report:
- Livestock productivity is the #1 priority for Australian farmers (54% said it was their top priority in 2025)
- 64% are using agtech to optimise grazing
- 38.5% prioritise operational efficiency
- 32.5% are focused on improved grazing practices
- 51.5% are investing in water infrastructure
- 46.5% are engaged in biodiversity/tree planting
These trends paint a picture of farmers taking control of the controlables, shifting from reactive to proactive.
1. Investing in resilience and resource efficiency
With unpredictable rainfall and input prices, resilience is becoming non-negotiable.
Top producers are:
- Upgrading water infrastructure to reduce seasonal vulnerability.
- Implementing biodiversity initiatives to boost soil health, shelter livestock, and support long-term productivity
- Using tools like AgriWebb’s Grazing Planner to optimise pasture utilisation and maintain ground cover
These investments not only prepare farms for tough years, they also lay the foundation for higher margins in productive ones.
2. Embracing agtech to drive profitability
In 2025, more than 64% of producers are using agtech to optimise grazing. Tech-savvy farmers are saving time, reducing costs, and uncovering new opportunities.
Agtech tools are helping producers:
- Plan more efficient grazing rotations
- Track weight gains in real time with tools like Optiweigh
- Record animal treatments, births, and sales from the paddock
- Collaborate more effectively across teams
3. Focusing on operational efficiency and grazing performance
Profitability isn’t just about selling more, it’s about wasting less. That’s why 38.5% of farmers are prioritising operational efficiency and 32.5% are targeting grazing improvements.
Top producers are:
- Running leaner, more agile teams using digital task management tools
- Monitoring pasture growth and matching stocking rates accordingly
- Using data to identify underperforming paddocks and animals
When every tonne of pasture and every kilogram of gain is accounted for, margins improve, without increasing workload or inputs.
4. Diversifying markets and minimising risk
Whether it’s launching a direct-to-consumer beef brand or entering the carbon market, smart producers are expanding their revenue streams and protecting profitability.
Popular approaches include:
- Paddock-to-plate marketing to capture premium prices
- Succession and business planning to avoid costly uncertainty
- Participating in carbon credit and biodiversity incentive programs
The most profitable farms aren’t just more productive, they’re more strategic.
Profitability through smart, purposeful action
2025 may be one of the most challenging years in recent memory for Australian agriculture, but it’s also one of the most innovative. By investing in agtech, improving grazing efficiency, and building resilient businesses, top producers are proving that profitability is still possible, even as costs rise.
Want to see what sets the best apart?
👉 Download the 2025 State of the Farmer Report. Get the full breakdown of what successful producers are doing differently this year.
