Agriculture, forestry and fishing industry

How businesses operate

Businesses in this industry often:

• plan their work around the growing, breeding, harvesting or fishing seasons
• sell products or services to other businesses, such as processors, wholesalers or exporters
• have contracts with other businesses to do work such as transporting livestock, processing produce or product testing.

Demand and competition

Many things that affect demand in this industry are outside a business's control. For example:

• global commodity prices, such as grain prices
• weather conditions, such as drought
• biosecurity outbreaks, such as bird flu
• water availability, such as water restrictions
• consumer trends, such as demand for sustainable products.

 Digital tools

Many businesses in this industry use digital tools to manage day-to-day work and keep records. These tools can help save time and track work, but they can also introduce risks, such as cyber threats.

Digital tools can help track resources, such as crops, livestock, water use and equipment maintenance. They can also help businesses keep biosecurity, food safety and traceability records.

Risks and challenges

Many businesses in this industry are impacted by weather, natural resources and seasonal conditions. These can change quickly and affect production, costs and income.

Common challenges include:

• extreme weather events, such as floods and bushfires
• pests, weeds and disease outbreaks that affect plants, animals or aquatic species
• labour shortages during busy growing, harvesting or fishing periods that can delay work or reduce output.

Identify your business risks early and develop a risk management plan to help protect your business.

Farmers and land managers can also access the Farm Business Resilience Program. This helps build knowledge and skills to manage the risks of a changing climate.

Industry statistics

Data can help you understand how businesses in this industry perform and how your business compares.

You can:

• explore annual estimates of industry income, costs, profit and capital expenditure at the Australian Bureau of Statistics
• compare your business's performance against similar ones using the Australian Taxation Office's small business benchmarks
• get the latest job market trends and insights at Jobs and Skills Australia
• find industry, trade and regional data at the Australian Bureau of Agricultural and Resource Economics and Sciences.

These are some laws you may need to follow:

• Competition and fair trading laws are set out in the Competition and Consumer Act 2010.
• Rules about pricing, refunds, contracts and advertising are set out in Australian Consumer Law (ACL).
• The Biosecurity Act 2015 may apply if your business grows, moves, imports or exports plants, animals or related products.
• Animal welfare laws may apply if your business keeps, breeds, transports or manages animals.
• Businesses that catch, farm or harvest fish and other aquatic species must follow fishing and aquaculture rules for their location and activity.
• The Water Act 2007 may apply if your business uses or trades water in the Murray–Darling Basin.
• The Environment Protection and Biodiversity Conservation Act 1999 may apply if land clearing, forestry, aquaculture or fishing affects protected species or habitats.
• Dairy, sugar and horticulture businesses may need to comply with mandatory industry codes of conduct.

Also check state, territory and local government laws where you operate to see what applies to your business.

Local councils and state or territory governments manage most licences and permits in this industry. What you need depends on your business activities and location.

You may need licences, permits or approvals to:

• use water for irrigation, stock watering or aquaculture
• clear native vegetation, harvest timber or set up a plantation
• conduct commercial fishing or use certain fishing equipment
• keep livestock, poultry or farmed aquatic species
• store, transport or use agricultural chemicals
• build structures such as sheds, dams, feedlots or ponds
• manage waste or wastewater
• conduct burn-offs or manage fire risks.

Your business has a role to play in helping stop pests, weeds and diseases from entering and spreading in Australia.

A pest, weed or disease outbreak can disrupt production, restrict the movement of goods and affect access to local and overseas markets.

To help reduce biosecurity risks:

• keep plants, animals, soil, feed, equipment and vehicles clean
• follow movement rules when transporting animals, plants, produce, seafood or equipment
• monitor for pests, weeds and diseases
• report suspected pests, weeds or diseases quickly.

All businesses have a duty of care under work health and safety (WHS) laws and must take reasonable steps to keep workers and others safe. Common risks in this industry include vehicles, machinery, animals, chemicals and working outdoors.

Safe Work Australia has industry information about WHS duties and managing risks for:

• agriculture work
• forestry work
• diving work in aquaculture.

Businesses in this industry often hire seasonal workers, labour hire workers and workers paid piece rates.

Make sure you know which workplace laws you need to follow before you create an employment contract or hire contractors.

Piece rates

A piece rate means an employee is paid for what they personally pick, pack, prune or make. Piece rates are common for workers in the horticulture and wine industries.

You can pay employees piece rates when an award or enterprise agreement allows it, such as the Wine Award. If an employee is not covered by an award or agreement, you must pay them at least the national minimum wage.

If you use piece rates, you must:

• keep piecework records and agreements
• check the award or agreement for any extra rules about piecework.

The agriculture, forestry and fishing industry depends on healthy land, waterways and ecosystems. But its business activities can affect:

• soil quality
• water quality
• native vegetation
• biodiversity
• marine environments.

Set up good environmental practices, such as adopting water use targets, to help your business minimise its impact on the environment. Good practices can:

• help protect natural resources for future use
• improve your productivity
• help you enter, compete or maintain your presence in a new or established market.

Consider building your sustainability credentials to show people how you manage your environmental impacts responsibly. For example, there are 2 global forest certification bodies that operate in Australia.

Sustainability reporting

Australia has mandatory sustainability reporting.

Many businesses in this industry won't need to report. However, businesses they sell to or buy from may ask for climate data to help with their reporting. For example, they may ask for details about environmental practices, energy use or emissions.

Energy and water use

Farms use a lot of energy and water. For example, irrigation systems, cool rooms and dairy equipment. Managing energy and water use can help reduce costs and support sustainable business practices.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has tips for reducing energy costs in the agricultural industry.

Your tax obligations depend on your business structure, the work you do and how you get paid. Make sure you know the taxes that apply to your business to help you avoid common mistakes.

The Australian Taxation Office has special tax rules and incentives for primary producers. For example, eligible businesses can:

• use income averaging
• pay goods and services tax (GST) in 2 instalments a year
• use the farm management deposits scheme to make tax deductible deposits during years of good cash flow and withdraw them during bad years.

You may need to pay a levy or export charge on some agricultural, fishery or forestry products. These help the industry fund activities, such as:

• marketing
• research and development
• biosecurity activities and responses
• residue testing.

Industry groups generally decide if they need a levy, what it will fund and how they will collect it.

Holders of Commonwealth fishing concessions also pay the Commonwealth fisheries levy. This helps cover the costs of managing fisheries and supports their long-term sustainability.

There are different types of intellectual property (IP) protection that may be relevant to agriculture, forestry and fishing businesses.

Plant breeder’s rights (PBR) protect new plant varieties. PBR holders can use, sell and distribute their varieties. They can also license them to others and earn royalties.