Starting a farm in Australia is exciting, but choosing the right crop can make or break your first few seasons. Climate, soil, water access, labour and market access all matter. This guide walks new farmers through the best crop choices for different regions, the practical factors to weigh, and risk tools, including crop insurance Australia, that can help protect your fledgling farm.
Match the crop to your place and resources
There is no single “best” crop for all of Australia. Think first about your climate zone and on-farm resources:
Mediterranean climates (parts of WA, SA, VIC): cereals like wheat and barley, canola, lentils, olive, and pulses do well here. Vineyards and wine grapes are an obvious option in recognised regions (e.g. Barossa, Yarra).
Temperate inland (NSW, VIC, southern QLD): broadacre grains, canola and pulses work where there’s reliable rainfall or access to irrigation. Mixed farming (crop + livestock) is common.
Subtropical and tropical (northern NSW, QLD, NT): sugarcane, tropical fruit (mangoes, avocados in suitable pockets), and cotton (where irrigation is available).
Horticulture & intensive cropping (near cities or irrigated regions): vegetables, berries, salad greens and greenhouse production can be very profitable if you’re close to markets and can manage labour requirements.
Dryland grazing/mixed enterprise: if rainfall is low, consider fodder crops, lucerne or pulse crops that also improve soil nitrogen for rotational benefits.
Low-cost, high-potential starter crops
For many new farmers with limited capital and variable water access, these are sensible starter options:
Wheat and barley: familiar, widely traded and supported by robust agronomy networks. Machinery and inputs are well understood, and there’s an established market infrastructure.
Pulses (lentils, chickpeas, faba beans): useful for crop rotation, soil health and earning premium prices in some seasons. They fix nitrogen, reducing fertiliser needs for the following crops.
Canola: a good rotational break crop with strong domestic and export demand.
Lucerne (forage) & hay: lower market volatility, useful if you plan to combine cropping and grazing or sell into local livestock markets.
Niche horticulture (greenhouse salad greens, herbs): requires more hands-on management but can deliver high returns if you can reach urban markets.
Considerations beyond the plant
Water & irrigation: If you’re reliant on irrigation, your crop choices expand (cotton, lucerne, horticulture). If water is scarce, favour drought-tolerant crops and conservation practices.
Soil health: Test your soil first. Crops that suit your soil pH and structure will save time and money. Pulses and legumes help rebuild soil nitrogen.
Labour: Horticulture and some fruit crops are labour-intensive. Cereals and broadacre crops are more mechanised and suit smaller crew sizes.
Capital & machinery: Starting with commodity grains often requires the largest upfront machinery investment; contract operators can lower this barrier.
Market access: Proximity to grain receival sites, processors or wholesale markets matters. Contract growing (agreements with buyers) is often a safer path for novices.
Climate-smart farming and resilience
With growing climate variability, new farmers should prioritise resilience:
Use resilient varieties: Selected for heat and drought tolerance. Seek advice from the Grains Research & Development Corporation or local agronomists.
Adopt conservation practices: Minimal tillage, cover crops and stubble retention protect soil moisture and reduce erosion.
Diversify: Don’t put all your enterprise eggs in one basket. Consider mixing short-season crops with longer ones, or integrating livestock.
Invest in water efficiency: Drip irrigation, soil moisture sensors and automated scheduling pay back in tight seasons.
Market and value-add strategies
New farmers can increase margins by stacking value:
- Contract growing: for processors or retailers removes some price risk.
- Direct Marketing: (farm gates, local farmers’ markets, CSA boxes) can yield premium prices for small horticulture producers.
- On-farm Processing: (drying, minimal packaging) can capture more of the retail dollar but requires compliance and capital.
Manage risk, including crop insurance
The weather is a primary source of risk. Traditional single-peril policies (hail, fire) help, but multi-peril solutions and indexed products are increasingly relevant. Specialist products and advice are now available to Australian growers. Consider crop insurance as part of a broader risk plan that includes savings cushions, flexible debt, diversification and forward contracts. Also check government programs, drought relief and farm business counselling services when budgeting for your first years.
Start small, plan big
For new entrants, a sensible approach is:
Start small: trial crops on a few hectares to learn pest, soil and market dynamics.
Talk to locals: local agronomists, extension officers (state DPIs), and farmer groups are invaluable.
Budget for bad years: set aside working capital and investigate insurance options early.
Keep learning: attend field days, read regional agronomy reports and test new varieties progressively.
Useful resources
- The CSIRO climate and agriculture research.
- The ABARES farming insights and market data.
- Your state Department of Primary Industries or Agriculture for local guidance
Choosing crops as a new farmer means balancing climate, soil, capital and markets. Start with crops suited to your land and resources, prioritise soil and water resilience, and use financial tools (including crop insurance) to manage extreme seasons. With careful planning and local advice, new growers can build profitable, lasting enterprises in Australia’s diverse agricultural landscape.
