Climate change: Who cares wins

Climate change is already shaping decisions made at the farm gate. Hotter summers, more variable rainfall, and rising input costs are the new status quo.

At the same time, farmers who prioritise sustainability and climate change action are increasingly finding that what’s good for the land is also good for the bottom line. 

A recent Australian study published in Agricultural Systems, covering more than 230,000 hectares of   farmland, found that farms with stronger natural capital often achieved better economic outcomes. Farms with healthier soils, better vegetation cover, and more diverse ecosystems tend to show higher productivity, improved gross margins, and greater financial resilience.

Sustainability is increasingly part of the business case for long-term farm performance, not separate from it.

What actually works on farm?

Across Australia, primary producers are already applying sustainability in practical, operational ways that also support profitability. The most effective approaches tend to be simple, embedded in day-to-day management, and focused on reducing risk rather than adding complexity.

Common examples include:

• maintaining ground cover
• rotational grazing
• increasing pasture diversity
• improving water efficiency
• using precision inputs to reduce fertiliser and feed waste. 

These are not “new” ideas, but they are increasingly being viewed through a different lens: as practical tools for improving productivity, reducing emissions intensity and protecting margins.

A strong example of this thinking in practice is WA’s FEED365 project, which explored year-round forage systems for livestock producers. The project demonstrated how combining perennial pastures and forage systems can reduce seasonal feed gaps, improve carrying capacity, and reduce reliance on supplementary feeding - a major cost pressure during dry conditions.

What makes this important is not just the agronomy, but the outcome: more stable feed supply and more predictable business performance in variable seasons.

The latest research reinforces what many farmers already know from experience: healthy landscapes support healthy businesses. As climate conditions continue to change, the farms best equipped for the future may be those that treat sustainability as part of everyday decision-making.

Where is this heading? 

The future of agriculture will see sustainability embedded as a core farm business strategy, alongside productivity, risk management and profitability.

This shift is being driven by several forces:

• more variable and extreme climate conditions 
• rising input costs across energy, feed, and fertiliser 
• increased expectations from banks, insurers, and export markets 
• growing emphasis on climate resilience and ESG performance 

Ultimately, sustainable farming is a practical response to these forces. It is about building systems that are more flexible, more efficient, and better able to absorb shocks.

Farms that invest in soil health, pasture diversity, efficient resource use, and system resilience are often better positioned to maintain productivity through difficult seasons.

In this context, sustainability is less about adding new layers of complexity, and more about embedding better decision-making into everyday farm operations.

How RSM can help

RSM Australia works with agribusinesses across Western Australia to help identify opportunities to improve efficiency, manage climate-related risks, and respond to changing ESG expectations. 

FOR MORE INFORMATION

To learn more about establishing your baseline emissions and identifying practical opportunities to improve productivity, efficiency and long-term resilience, contact RSM Australia.

This article was first published on ACM Farm Weekly.