Approximately half () of the municipality's area is rural with optimal conditions for agriculture including rich volcanic soils and climate. This area is used primarily for agriculture and animal husbandry and generates more than $37 million in commodities. The region supports an active potato growing industry that has supplied local food manufacturers including McCain, though more recently has been threatened by cheaper imports. Other large crops include grains, vegetables, grapes and berries. Cattle and poultry stocks, including sheep, cows and pigs, support an active local meat and dairy industry. The Ballarat Livestock Selling Centre is the largest cattle exchange in regional Victoria. The Ballarat Agricultural and Pastoral Society formed in 1856 and has run the Ballarat Show annually since 1859.