Farm financial performance - South Australia

​​​​​​​​Estimates of financial performance are available for all broadacre, beef, sheep, grains, dairy and vegetable farms in South Australia.

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Incomes of South Australian broadacre farms increased in 2014–15 to an average of $199,300 a farm as a result of increased winter crop production, higher beef cattle turn-off and higher prices for barley, pulses, beef cattle, sheep and lambs.

Broadacre farm cash incomes are projected to have increased further to average $220,000 a farm in 2015–16. If achieved, this is around 65 per cent above the 10-year average to 2014–15.

Increased winter crop production resulting mainly from an increase in the area planted to winter crops, together with a small increase in beef cattle, sheep, lamb and wool receipts, is projected to have resulted in average farm cash income increasing in all regions in 2015–16.

Slightly lower winter crop yields in the South East, Murray Lands and Yorke Peninsula regions resulting from drier seasonal conditions are projected to have resulted in only a very small increase in average farm cash income in these regions in 2015–16. In the Eyre Peninsula, winter crop yields increased and the projected increase in average farm cash income is larger. In the North Pastoral region, higher beef cattle, sheep and wool prices, together with increased turn-off of beef cattle, are projected to have resulted in a large increase in average farm cash income.

Real farm cash income, broadacre industries, 2001–02 to 2015–16, average per farm
Shows farm cash income for broadacre industry farms in Australia and South Australia from 2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous three paragraphs.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Financial performance, South Australia broadacre industries 2013–14 to 2015–16 average per farm
Performance indicator2013–142014–15pRSE2015–16y
Total cash receipts ($)484,130530,600(12)551,000
Total cash costs ($)324,860331,300(13)331,000
Farm cash income ($)159,270199,300(13)220,000
Farms with negative farm cash income (%)157(37)15
Farm business profit ($)28,56064,600(29)95,000
Profit at full equity a ($)69,660102,200(21)132,000
Farm capital at 30 June b ($)3,960,6604,126,500(9) na
Farm debt at 30 June c ($)441,740425,100(15)409,000
Equity ratio c d (%)8889(1) na
Rate of return a e (%)1.82.6(17)3.1
Off-farm income c f ($)29,22035,400(10) na

Source: ABARES Australian Agricultural and Grazing Industries Survey
RSE Standard error expressed as a percentage of the estimate provided
p Preliminary estimate
y Provisional estimate
a Excludes capital appreciation
b Excludes leased plant and equipment
c Average per responding farm
d Equity expressed as a percentage of farm capital
e Rate of return to farm capital at 1 July
f Off-farm income of owner manager and spouse
na Not available

Farm cash income of South Australia broadacre farms, by region, 2014–15 to 2015–16 average per farm
Region2014–15pRSE2015–16y
$$
411: North Pastoral243,000(30)479,000
421: Eyre Peninsula230,000(37)260,000
422: Murray Lands and Yorke Peninsula241,000(18)242,000
431: South East122,000(21)132,000

Source: ABARES Australian Agricultural and Grazing Industries Survey
RSE Standard error expressed as a percentage of the estimate provided
p Preliminary estimate
y Provisional estimate

Shows the ABARES high rainfall zone (eastern seaboard, South Australian south-east coast and south-west coast of Western Australia); wheat–sheep zone (south-east Queensland excluding the coast; central New South Wales, including the North West Slopes and Plains, Central West and Riverina, northern Victoria, South Australian Eyre Peninsula, Murraylands and Yorke Peninsula and Western Australian wheat belt ); and pastoral zone (Northern Territory, northern and central Western Australia, northern and central South Australia, western New South Wales, and northern and western Queensland). The map also shows the ABARES regions within these zones.
Note: Each region is identified by a unique code of three digits. The first digit identifies the state or territory, the second digit identifies the zone and the third digit identifies the region. Source: ABARES

In 2013–14, a reduction in prices received for beef cattle resulted in farm cash income of South Australian beef farms falling sharply.

Beef industry farm cash incomes then increased in 2014–15 as a result of a 24 per cent increase in average beef cattle prices and higher beef cattle turn-off. High cattle turn-off was partly a result of dry seasonal conditions in the South East and North Pastoral regions with high cattle prices further encouraging turn-off. Average farm cash income of South Australian beef farms is estimated to have increased from an average of $68,080 a farm in 2013–14 to an average of $99,600 in 2014–15.

Beef cattle turn-off is projected to have decreased in 2015–16 as a result of reduced numbers of saleable cattle. Despite lower turn-off, further increase in saleyard prices for beef cattle are projected to have resulted in an increase in farm receipts, more than offsetting an expected increase in expenditure on purchase of beef cattle, to result in average farm cash income of South Australian beef farms increasing to $162,000 a farm in 2015–16. If achieved, this is more than double the 10–year average to 2014–15 of $75,700.

Real farm cash income, beef industry, 2001–02 to 2015–16, average per farm
Shows farm cash income for beef industry farms in Australia and South Australia from 2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. Farm cash income of South Australian beef farms fell sharply in 2013–14 and has been increasing since then. The figure is discussed in the previous three paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Farm cash incomes were historically high in real terms for South Australian sheep industry farms in 2010–11 and 2011–12. However, in 2012–13, a reduction in average prices received for lambs, adult sheep and wool resulted in farm cash income of South Australian sheep farms falling back in line with historical trends.

In 2014–15, higher prices for sheep and lambs combined with increased turn-off resulted in higher farm cash receipts. Farm cash income of sheep industry farms increased to an average of $140,300 a farm.

In 2015–16, higher sheep, lamb and wool prices are projected to have resulted in a further increase in farm cash receipts. Despite increased expenditure on fodder as a result of dry seasonal conditions in south–eastern regions, average farm cash income of sheep industry farms is projected to have increased to $162,000 a farm, around 65 per cent above the industry average of $98,100 a farm for the ten years to 2014–15.

Real farm cash income, sheep industry, 2001–02 to 2015–16, average per farm
Shows farm cash income for sheep industry farms in Australia and South Australia from   2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous three paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Incomes of South Australian grains farms increased in 2014–15 to an average of $260,900 a farm as a result of increased winter crop production and higher prices for barley and pulses.

In 2015–16, farm cash incomes of South Australian grains farms are projected to have increased to average $265,000 a farm. This is around 50 per cent above the 10–year average to 2014–15.

Overall, crop receipts are projected to have increased in 2015–16, mainly as a result of increased winter crop production resulting from higher yields on the Eyre Peninsula and an overall increase in pulse receipts. In addition, total cash costs for grains industry farms are projected to decrease slightly in 2015–16, as a result of reduced fuel and interest costs compared with 2014–15.

Real farm cash income, grains industry, 2001–02 to 2015–16, average per farm
Shows farm cash income for grains industry farms in Australia and South Australia from   2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous three paragraphs..
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Average farm cash income of South Australian dairy farms decreased from an average of $162,980 a farm in 2013–14 to $133,500 in 2014–15. Lower prices received for milk were partly offset by increased receipts from cattle sales, but farm cash costs were also higher, particularly as expenditure on fodder increased.

In 2015–16, farm cash income of South Australian dairy industry farms is projected to have declined further to an average of $79,000 a farm, around 49 per cent below the 10–year average to 2015–16. This reflects the effects of lower forecast milk prices, reduced milk production and a further increase in expenditure on fodder as a result of dry seasonal conditions and increased fodder prices in 2015–16.

Real farm cash income, dairy industry, 2001–02 to 2015–16, average per farm
Shows farm cash income for dairy industry farms in Australia and South Australia from   2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous two paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Financial performance, South Australia dairy industry 2013–14 to 2015–16 average per farm
Performance indicator2013–142014–15pRSE2015–16y
Total cash receipts ($)936,270941,900(6)901,000
Total cash costs ($)773,290808,400(7)822,000
Farm cash income ($)162,980133,500(10)79,000
Farms with negative farm cash income (%)1115(83)40
Farm business profit ($)62,910-9,000(24)-50,000
Profit at full equity a ($)154,04076,900(14)25,000
Farm capital at 30 June b ($)4,217,2104,428,200(9)na
Farm debt at 30 June c ($)1,117,7201,146,800(14)1,045,000
Equity ratio c d (%)7474(4)na
Rate of return a e (%)3.71.7(14)0.6
Off-farm income c f ($)19,51023,000(81)na

Source: ABARES Australian Agricultural and Grazing Industries Survey
RSE Standard error expressed as a percentage of the estimate provided
p Preliminary estimate
y Provisional estimate
a Excludes capital appreciation
b Excludes leased plant and equipment
c Average per responding farm
d Equity expressed as a percentage of farm capital
e Rate of return to farm capital at 1 July
f Off-farm income of owner manager and spouse
na Not available

In 2014–15 an estimated 320 vegetable-growing farms were operating in South Australia, accounting for around 13 per cent of Australian vegetable-growing farms. Most farms were located in the Mallee, the Riverland and the Adelaide Plains to the north of the city. The average area of vegetable farms in South Australia in 2014–15 was around 242 hectares, of which 29 hectares was planted to vegetables.

Average farm cash income fell by 21 per cent to around $172 000 in 2015–16, 15 per cent lower than the nine-year average (in real terms) for South Australia to 2014–15. In 2015–16, despite an increase in potato receipts, lower prices for most vegetables resulted in lower average receipts.

Real farm cash income, vegetable industry, 2005–06 to 2015–16, average per farm
Shows farm cash income for vegetable industry farms in Australia and South Australia from   2005–06 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous two paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

 

Selected physical and financial results, Australian vegetable-growing farms, by state, 2014–15 and 2015–16, average per farm

Indicator

2014–15p

% change from 2013–14

2015–16y

% change from 2014–15

Vegetable cash receipts ($)

775,400

(82)

11

754,000

–3

Area planted to vegetables (hectares)

29

(8)

–18

30

3

Quantity of vegetables produced (tonnes)

1,493

(12)

16

1,540

3

Farm cash income ($)

217,100

(47)

50

172,000

–21

p Preliminary estimate. y Provisional estimate.
Note: Figures in parentheses are standard errors expressed as a percentage of the estimate.
Source: ABARES Australian vegetable-growing farms survey

Major financial performance indicators

  • Total cash receipts: total revenues received by the business during the financial year.
  • Total cash costs: payments made by the business for materials and services and for permanent and casual hired labour (excluding owner manager, partner and family labour).
  • Farm cash income:total cash receipts - total cash costs
  • Farm business profit:farm cash income + changes in trading stocks - depreciation - imputed labour costs
  • Profit at full equity: return produced by all the resources used in the business, farm business profit + rent + interest + finance lease payments - depreciation on leased items
  • Rate of return: return to all capital used, profit at full equity * 100 / total opening capital
  • Equity ratio: Farm capital minus farm debt expressed as a percentage of farm capital

Industry types

  • Grains: farms mainly engaged in producing broadacre crops such as wheat, coarse grains, oilseeds and pulses, and including farms running sheep and/or beef cattle in conjunction with substantial broadacre crop activity.
  • Sheep: farms mainly engaged in running sheep.
  • Beef: farms mainly engaged in running beef cattle.
  • Dairy: farms mainly engaged in milk production.
  • Vegetable: farms mainly engaged in growing vegetables.
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Last reviewed:
23 Mar 2017