Ray White Now | February 2022 | Page 27

1 . AUSTRALIA HITS RECORD AGRICULTURAL PRODUCTION
Australian agricultural production hit a record in 2021 , hitting an estimated value of $ 73.5 billion . Most commodity types saw increases , driven not just by increased demand globally , but also supply chain disruptions pushing up prices , and COVID-19 infection problems overseas that tended to be much more severe than Australia . In 2021 , great weather in Australia really helped , particularly at a time when many other places didn ’ t have such great conditions .
There has long been a saying that “ Australia rides on the sheep ’ s back ”, however sheep farming is no longer anywhere near our biggest agricultural output . That has now well and truly been overtaken by beef and wheat . And in 2021 , both of these sectors had particularly strong market conditions .
2 . COMMODITY PRICES PUSHING UP HOUSE PRICES
The South Australian economy saw the strongest growth of all states in 2021 and it was agriculture that drove it there . In other states , we saw a similar trend - agriculture has been a driver of economic growth during the pandemic , at a time when many other sectors pulled back .
Strong growth in commodity prices for many agricultural products have flowed through to economic growth at a state level but has also pushed up residential prices in many towns that rely on these commodities . The West Australian wheat belt , which produces more wheat than anywhere else in Australia , saw the median house price jump 31 per cent since the start of the pandemic , driven significantly by wealth gains as a result of strong wheat prices .
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