Overall, cash received by customers was up 15 per cent year-on-year in late May while NSW grain growers appear to have benefited the most, with receipts up 73 per cent in April on a year-on-year basis.
NAB regional and agribusiness executive Julie Rynski said farmers were poised to capitalise on strong business conditions.
“Most farmers have proven to be exceptionally resilient over the last two years through some particularly challenging conditions,” Ms Rynski said.
“The last time we saw cash inflows from our NSW grain growing customers reach similar levels was in January 2017 on the back of the second biggest national crop on record.
“Data from the Australian Bureau of Agricultural and Resource Economics and Sciences indicates over 33 million tonnes of wheat was harvested last season.
“This is more than double the previous season and we’re seeing this in action with grain growers across the country recording really strong results.”
Ms Rynski said the positive outlook was also reflected in ABARES forecasting above average winter crop production in 2021-22, with the area planted to winter crops this year set to reach a record high nationally.
“Sectors that have done it tough through the drought, like NSW cotton, are also showing tentative signs of recovery,” she said.
“However, with big inflows into water storages this year, no doubt we can expect further gains in the coming season.
“Customer transactions by state indicate grain production has also been driving business in Victoria, Western Australia and Queensland since late 2020.”