The bank found grain-growing regions could see profitability declines as productivity falls by 50 per cent in some areas by 2060,compared with a 2018 baseline,with"changes in predicted rainfall"the driver.
For the livestock sector,profitability could drop by 40 per cent over the same time period because of a decline in pasture quality and quality.
The dairy industry,too,faces"falls in most regions"of as much as 40 per cent drop in profitability by 2060 because of the rising likelihood of significant heat stress,the bank said. After five consecutive days of extreme conditions,cows can stop lactating and producing milk.
The Commonwealth Bank is among the first big lenders to signal concern about farming productivity in the future.
The bank,though,said"adaptive measures"could be moderate and even reverse those declines,such as the introduction of genetically modified grain able to increase the crop's resilience to extreme weather.
Similarly,new technology could help reduce overgrazing,while shade and water sprays could help keep cows cool,the bank said.