Investing in Automation: Farmers Combat Rising Labor Costs in Australia

In light of rising labor costs and challenges in workforce management, Australian farmers are increasingly investing in automation and advanced technologies to enhance efficiency and maintain productivity. This trend has been notably observed in regions like Bundaberg, where growers like Jason Gatt of Sunripe are utilizing GPS-guided autonomous tractors to streamline operations and reduce labor expenses.

On July 1, 2025, the national minimum wage was raised by 3.5%, increasing from $24.10 to $24.95 per hour. This wage increase, coupled with a persistent shortage of agricultural workers, has prompted many in the farming sector to explore automation as a viable solution. "Time is money," Gatt remarked, highlighting how his company has significantly reduced the time needed for preparing fields through the use of automated machinery. With over 20 GPS tractors in operation, Gatt's investment has allowed his business to prepare 32 hectares in just over two days, a task that once took a week.

According to the latest benchmarking report from Level Up Hort, a research program backed by Hort Innovation, labor efficiency is crucial for overall profitability in the horticultural industry. Project leader Steff Carstairs indicated that growers who manage labor effectively tend to fare better financially. The report analyzed data from businesses producing approximately 5,596 hectares of vegetables and onions across six Australian states.

Moreover, Richard Shannon, Executive Officer of the National Farmers Federation's Horticulture Council, emphasized that increasing operational costs over the past five years have not been matched by a rise in grower returns. "This has led to a significant squeeze across the industry, affecting all stakeholders," he noted.

In addition to automation, many growers are re-evaluating their labor strategies. Ray Fulcher, a producer in Bundaberg, has transitioned to using labor hire contractors to better manage seasonal workforce needs. He acknowledges that while the work environment can be challenging, particularly during summer, adapting to these labor realities is essential for sustainable business practices.

Fulcher also pointed out the high costs associated with modern farming technologies. His investment in hydroponic systems, which cost around $2 million, exemplifies the financial burden many farmers face when trying to optimize their operations. "Growers have to accept labor costs as part of doing business and focus on optimizing their workforce," he added.

The implications of these trends are significant. The agricultural sector is at a crossroads, where the adoption of technology could dictate future success or failure. As farmers navigate these challenges, the balance between investing in automation and managing labor costs will be crucial for their long-term viability. The National Farmers Federation is urging growers to conduct thorough research and seek expert advice before implementing new technologies to avoid costly missteps.

As the farming industry continues to evolve, the integration of technology appears to be a necessary strategy for overcoming the persistent challenges of rising labor costs and securing a sustainable agricultural future in Australia. Experts believe that with careful planning and investment, the agricultural sector can not only survive but thrive in a competitive landscape that increasingly demands efficiency and innovation.