Bigger farms don't boost productivity or profit, ANZ research finds
Farm size accounts for only 36 per cent of Australian farm productivity gains.
Bigger farms don't necessarily make more money or produce more efficiently. Research by ANZ Banking Group found farm size accounts for only about 36 per cent of Australia's farm sector productivity gains over the past 35 years.
Only Western Australia and Victoria saw average farm size expand with productivity growth. This was mainly due to increased cropping.
In South Australia and NSW, larger farms made little difference to improvements between 1990 and 2025. Queensland and the Northern Territory saw different results.
Productivity actually improved as average farm size shrank. This was likely due to better irrigation, pastures, grazing systems and machinery.
These made smaller holdings viable. Much of farm growth comes from producing the same output with fewer inputs.
These include better seed genetics, variable-rate fertiliser, reduced tillage, improved livestock breeding and lower handling costs.
- 36 per cent
- Farm size impact on productivity
- 35 years
- Research period
- Madeleine Swan, ANZ
- Researcher
- Western Australia, Victoria
- States where size mattered
Why it mattersAustralian farmers often assume they need to expand to survive. This research suggests efficiency and smart use of technology matter more than land size alone.
AustraliaAustralian farming is a productivity leader for the economy; the finding supports smaller and medium-sized operators considering alternatives to expansion.
✓ Claims checked against the source and corrected before publish. checked 6 d ago
