Fire on the farm: Assessing the impacts of the 2019-2020 bushfires on food and agricultures in Australia

This report provides a review and synthesis of the economic impacts of the 2019-2020 bushfires on agriculture and the wider food system. Of the more than 10 million hectares burnt in south-eastern Australia during the 2019-2020 fire season, around one-quarter was agricultural land. To assess this impact in economic terms, the researchers investigated the effects of the bushfires on farmland values and food output, as well as nonmarket impacts on farm and food workers, consumer prices and other cross-sectoral effects. The report also reviewed the value of bushfire recovery support to the food sector.

The report finds that the 2019-2020 bushfires caused an estimated $4-5 billion worth of economic losses to the Australian food system. There was also evidence of short-term increases in food prices and job losses in fire-affected areas, which added to the economic impact of the bushfires. Insurance pay-outs and government assistance compensated for only part of these costs. The report found that farmers and other food-related businesses received approximately 20% of economic recovery grants provided by governments. Despite shocks occurring one after another, Australian food producers and distributors have continued to supply quality products to consumers both at home and abroad. The long-term prospects for Australian food production are less clear.