Rural Bank has this week released its Australian agriculture mid-year outlook 2021 report, analysing the performance of six industries - cattle, cropping, dairy, horticulture, sheep, and wool, and the broader economy.
Queensland has had a mostly favourable outlook, but the mouse plague spilling over the border and the pandemic induced labour shortage have been major strains for producers.
Rural Bank Queensland regional manager Mark Pain said the cooler weather and rainfall has been the main driver for the state's favourable outlook.
"The season has been really good, which has been a relief for a lot of communities," he said.
"Even heading into winter, we're getting really good rain across the state for the season."
Mr Pain said horticulture producers have enjoyed the mild weather alongside the drop in irrigation costs.
"Yields have been good across the board," he said.
"The mild conditions have meant that everything has shaped up nicely for vegetable and fruit industries.
Mr Pain said that although the mouse plague is not affecting Queensland producers as badly as their New South Wales counterparts, it was a mark on the outlook.
"The mouse plague is still causing damage, bringing crop losses, and damaging storage," he said.
"The cool weather has tempered the threat of mice, with some frost getting around, which has been good, but it's all about how we respond in the Spring."
Queensland's citrus production expanded from last season with exceptional quality reported throughout the state after a mostly mild and still summer period.
However, Mr Pain said that farmers have been challenged getting the fruit off the tree because of the pandemic's labour shortage.
"The closing of international borders has dried up backpacker workforce, which has required a longer harvest to get the fruit off of trees," he said.
"The labour shortage is the biggest issue facing growers, getting that product off the paddocks continues to be the most pressing issue."
Mr Pain said the later harvest and notable reduction of citrus exports to China have led to "a domestic oversupply of citrus", particularly oranges.
Banana prices and production aren't expected to return to normal anytime soon after Tropical Cyclone Niran destroyed $180 million worth of crops.
"Banana producers are a resilient bunch, but it should be at least 12 months before they're back up to production," Mr Pain said.
Mr Pain said Queensland's booming cattle market should continue to break records until the end of the year.
"In the immediate and short term, prices should continue to rise, because the restock is driving the market as we continue to get rain," he said.
"As cattle producers continue to build numbers their should be a shift in production levels by the back end of this year, which could bring those cattle prices of their records, albeit they should remain at a high level."
