Following three successive years of record-breaking production value from 2020–21 to 2022–23, Australian agricultural production dipped in 2023–24 on the back of drier conditions and lower crop prices, before rebounding strongly — with total output in 2024–25 reaching the second highest level on record in nominal terms. Looking ahead, production value is forecast to rise a further 6% to $99.5 billion in 2025–26, driven by rising livestock prices and a winter crop forecast to be the second largest on record.1
The sector's importance to the broader economy is significant: agriculture accounts for 55% of Australian land use, 74% of water consumption, and 11% of all goods and services exports, with around 70% of production destined for overseas markets.2
The outlook is not without headwinds. ABARES modelling estimates that changes in seasonal conditions between 2001 and 2023 reduced annual average broadacre farm profits by 18%, or around $28,500 per farm. Longer term, technology adoption and consolidation are reshaping the industry. Precision agriculture and regenerative farming practices are both growing at pace, as farmers and investors increasingly focus on yield optimisation, resource efficiency, and climate resilience.
So, how can investors gain exposure to the agriculture sector without buying a farm? One option is to invest in agriculture companies listed on the ASX.
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What are ASX agriculture shares?
Companies listed on the ASX in the agriculture sector encompass producers of agricultural commodities such as grains and livestock and companies that provide goods, such as fertiliser, to the industry.
Like resource shares, agriculture share prices can be linked to global commodity prices. In this case, commodities such as wheat, corn, and agricultural products. Competitive advantages such as scale, the use of technology, and branding can aid the performance of agriculture companies.
Why invest in the sector?
Rising grain prices and strong global demand are currently supporting ASX agriculture stocks, with favourable rainfall and soil moisture in parts of Queensland and northern New South Wales pointing to a potentially large 2025–26 harvest. The ongoing diversification of export markets is also expected to hold Australian exporters in good stead. Investors look to get in on the action via ASX agriculture stocks and exchange-traded funds (EFTs).
Nonetheless, investing in agriculture is not without its risks with fire, flood, and drought threatening the industry at various times. Climate change impacts have been most pronounced in south-western and south-eastern Australia, and geopolitical influences continue to affect the supply-demand equation for key commodities. Australian agricultural emissions are expected to slowly decline over the next 15 years; however, as the broader economy decarbonises, agriculture's share of total emissions is projected to rise from 19% in 2023 to over 30% by 2040.
Agriculture has traditionally been seen as a more conservative investment, offering reasonably stable returns over the long term. Although returns may not be as outsized as can occur in other sectors, the risks are lower. This means the agricultural sector can provide valuable portfolio diversification.
Top agriculture stocks on the ASX
There are a limited number of ASX-listed agricultural companies. Agriculture stocks sit within the consumer staples sector of the share market. Most are small-caps, companies with market capitalisations between a few hundred million and $2 billion.
Here are three top ASX companies in the agricultural products category ranked by market capitalisation from high to low.
| Company | Description |
| Elders Ltd (ASX: ELD) | Supplies primary producers with farm inputs. These include physical, financial, marketing, and advisory solutions required to operate farming enterprises |
| Ridley Corporation Ltd (ASX: RIC) | Provides animal nutrition solutions. The company produces food and supplements to meet the needs of a wide range of species |
| Graincorp Ltd (ASX: GNC) | Integrated agribusiness that stores, handles, processes, and exports grains, oilseeds, and edible oils across global supply chains |
Elders
Elders (ASX: ELD) provides farm inputs and services to Australian primary producers, supporting them throughout the production cycle. Its offerings span livestock and wool marketing, real estate, financial services, and agricultural supplies such as seeds, fertilisers, chemicals, and animal health products. The company has further strengthened its position with the recent acquisition of Delta Agribusiness, expanding its exposure to key retail markets and enhancing its agronomy and advisory capabilities.
As highlighted in recent updates, agriculture remains a cyclical industry, with earnings influenced by seasonal conditions and commodity prices. However, analysts are increasingly positive on Elders' outlook. Bell Potter has placed a buy rating and $9.00 price target on its shares, citing growth drivers including the Delta acquisition, system modernisation through its SysMod project, and recovery in farming conditions. The broker also forecasts fully franked dividends of 39 cents per share in FY26 and 45 cents in FY27, offering attractive income potential alongside possible capital upside.
Ridley Corporation
Ridley Corporation (ASX: RIC) provides animal nutrition solutions, manufacturing and marketing stock feed and supplements across livestock, poultry, aquaculture, and companion animals. The company has expanded its footprint through the acquisition of the Incitec Pivot Fertilisers Distribution (IPF) business.
Recent results showed a strong uplift in performance, with FY26 first-half revenue rising 55.8% to $1.03 billion and net profit increasing 137.4% to $52.7 million. Growth was driven by improved volumes, margins, and efficiencies in bulk stock feeds, alongside a solid $10.3 million contribution from IPF. While weaker commodity prices weighed on packaged feeds, the company increased its interim dividend to 5.1 cents per share and maintains a solid balance sheet.
Looking ahead, analysts remain positive, highlighting stronger-than-expected earnings and upgraded IPF synergies of $15 million. It retains an accumulate rating, with growth expected from efficiencies, market share gains, and a full-period contribution from IPF.
GrainCorp Ltd
Broker views on GrainCorp (ASX: GNC) are mixed, with Bell Potter maintaining a hold rating, arguing the stock is fully valued around current levels. While soil moisture conditions have improved in southern regions, a developing El Niño pattern could weigh on future crop yields, creating uncertainty for upcoming production.
Analysts were disappointed by weaker-than-expected earnings guidance, citing ongoing margin pressure that may persist into FY27. Despite this, it retains a positive long-term view due to GrainCorp's strong balance sheet and strategic assets, though near-term catalysts appear limited and patience may be required.
What lies ahead for Australian agriculture shares?
Agricultural investments remain in demand, supported by the essential nature of food production and their relatively low correlation with broader equity markets. This gives agriculture shares useful diversification benefits within a portfolio. In the near term, performance will continue to be influenced by seasonal conditions, commodity prices, and interest rates, all of which can impact farm output and profitability.
More recent data points to a sector that remains strong, albeit normalising after record highs. According to the Department of Agriculture, Fisheries and Forestry, the value of Australian agricultural production is expected to surpass 100 billion in 2025–263. Export values are also moderating after recent records, reflecting softer commodity prices and improved global supply, though demand from Asia remains a key support.
Looking ahead, long-term fundamentals remain favourable. Global population growth, rising protein consumption, and increasing demand for high-quality and sustainable food are expected to underpin the sector. While risks such as drought, input cost volatility, and shifting weather patterns persist, ongoing productivity gains, technology adoption, and export market diversification are likely to support Australian agriculture over time.
Benefits of investing in agriculture shares
Major global trends are driving opportunity: The growing global population is expected to require 35% more food by 2030.2 Increasing demand for protein sources and technology change and sustainability concerns are expected to drive growth.
Can act as an inflation hedge: Physical land (including farmland) tends to keep pace with inflation, and investing in the sector can help maximise yields and productivity.
Source of dividends: Farming companies can be a good source of dividends. Commodities such as corn, wheat, and soybeans are priced in United States dollars, so a stronger US currency benefits investors.
And the cons…
Weather dependency: Agriculture stocks are often very exposed to the impacts of weather events, as we saw with flooding in late 2022 and early 2023. This means returns can vary depending on the whims of nature.
Cyclical but don't follow economic cycle: Agricultural companies tend to have booms and busts depending on global production and demand levels. But demand for food and other products does not automatically reduce just because the economy slows down.
Are ASX agriculture stocks a good investment?
Agriculture is not just life-sustaining, it is big business. Many agriculture companies produce essential food goods, so product demand is not greatly impacted by economic cycles. These companies can generate significant income when things go right.
On the other hand, the impact of weather events and variable crop yields can lead to a mismatch between supply and demand. This means income can vary from year to year.
Investing in agriculture shares is an investment in food and crop production, processing, and distribution. With a limited land supply and a growing global population, interest in agricultural production is expanding.
For investors wanting exposure to the sector, the ASX offers a variety of shares for direct investing. Investors seeking diversification or broad exposure to the industry may want to consider an ETF such as BetaShares Global Agriculture Companies ETF Hedged (ASX: FOOD).
