The following graph says it all for Australian farming. Terms of Trade (prices received, compared to prices paid) have been steadily declining at least since the early 1950s. Productivity has risen, which has maintained profitability. However in recent decades, productivity seems to have plateaued, as well as being influenced by droughts.
Trends in Australian Broad-acre Terms of Trade (TT) and Productivity (TFP). ata from ABARES, quoted by Mullen and Keogh, 2013, AARES Conference, Sydney
The question now is, can productivity improvement be restored? Unfortunately public R& D funding has been in decline, and farm profits are needed to test and develop new technology.
But most farmers can drive along any country road, and see that things can be done better. Also communication technology may help move things along more quickly. This will still require an energetic mindset, looking for opportunity.
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