Farm production to hit record $54bn

Demand for livestock will drive the value of what Aussie farmers produce to record levels this year.

Farm output is tipped to increase 3.1 per cent to a record $53.7 billion in 2015/16, the federal government's agriculture research agency says.

However, the value of farm exports is expected to drop 1.4 per cent from last year's figures, and global prices for wheat and sugar will also fall, the Australian Bureau of Agricultural and Resource Economics and Sciences data released on Tuesday shows.