Disaggregating farm performance statistics by size

This data dashboard summarises a range of financial performance statistics for farms of different sizes, by industry and region. Data are presented for farms:

  • by deciles based on each farm’s total cash receipts in each year
  • by terciles based on each farm’s area operated (hectares).

In both presentations, data have been collected through ABARES Australian Agricultural and Grazing Industries Survey (AAGIS) and Australian Dairy Industry Survey (ADIS). The statistics complement other ABARES farm performance statistics and productivity estimates, and serve to highlight the significant differences in financial performance that exist across farms of different sizes.

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Key findings

This dashboard was updated in September 2026 to include two approaches to measuring farm size: total cash receipts and total area operated for the period 1990–91 to 2024–25.

The two approaches provided different perspectives of the recent and longer-term trends in broadacre and dairy agriculture. The cross-section approach provides detailed description of financial statistics of farms in a given financial year and in which the deciles are recalculated every year. The time-series approach provides detailed description of financial and productivity statistics of farms over the period between 1990-91 and 2024-25, and in which the terciles are based on the distribution of farm operating areas between 2019–20 and 2024–25.

The two approaches yield different but complementary insights – depending on whether the focus is on understanding the characteristics of successful farms in a given year, or on understanding the trends that farms of a given geographic size follow over time.

Between 2022–23 and 2024–25

When we consider broadacre farms in terms of their total cash receipts, the largest 10% of farms, measured over the 3 years to 2024–25, accounted for 58% of output. Taking advantage of their scale of operations, these farms recorded an average rate of return on capital (excluding capital appreciation) of 3.4%, and a rate of return (inclusive of capital appreciation) of 7.3%. In contrast, the smallest 10% of broadacre farms accounted for less than 1% of broadacre output. Their average rate of return on capital (excluding capital appreciation) slightly fell from -2.3% to -2.8%, although the rate of return (inclusive of capital appreciation) fell from 1.4% to 0.2%.

The beef industry was the most concentrated of all broadacre industries, with the largest 10% of farms accounting for almost 61% of beef output in the 3 years up to 2024–25. The average rate of return on capital (excluding capital appreciation) for the largest farms was 2.3%, while the average rate of return (including capital appreciation) was 5.6%. The smallest 10% of beef farms accounted for less than 1% of output, a rate of return on capital (excluding capital appreciation) of 3%, and a rate of return including capital appreciation of -0.5%.

Graphic showing the distribution of broadacre output among farm size groups in 2022–23 to 2024–25. The largest 10% of broadacre farms accounted for 58% of output and 45% of farmland, with an average rate of return of 7.3% including capital appreciation. In contrast, the smallest 10% of farms accounted for just 0.5% of output and 0.9% of farmland, with a rate of return of 0.2%. Overall, the chart highlights the concentration of output and profitability among the largest broadacre farms.
Figure 1 – Distribution of broadacre activity, by decile, 2022–23 to 2024–25

Capital appreciation, mainly through increases in land values, had a highly significant influence on raising the rates of return to the sector — with 60% of broadacre farms reporting negative rates of return when capital appreciation is excluded but only 10% reporting negative rates of return when capital appreciation is included.

Of all the industries covered in this report, dairy farms were the least concentrated. The largest 10% of dairy farms accounted for almost 35% of all dairy output, an average rate of return on capital (excluding capital appreciation) of 6% and an average rate of return with capital appreciation included of 8.4% in the 3 years to 2024–25. In contrast, the smallest 10% of farms accounted for less than 1% of output and reported an average rate of return on capital (excluding capital appreciation) of -0.9% and a rate of return with capital appreciation included of 0.2%. Capital appreciation had a smaller influence on farm rates of return in the dairy industry, with only 10% of farms recording negative rates of return (excluding capital appreciation).

Longer-term trends at a glance

The following analysis draws on data available from the time-series dataset. Australian broadacre and dairy farms have undergone significant structural adjustment over the longer term that has involved smaller, less profitable farm businesses either exiting farming, changing industries (for example from sheep to cropping), and/or being consolidated into larger establishments. Since 1990–91, the total number of broadacre and dairy farms declined from over 95,000 to 55,000 in 2024–25, with most of the decline occurring before 2009–10 (Figure 2a).

ABARES’ survey data indicates that the total area of broadacre and dairy farms also declined, by about 0.8% per year — from 450 million hectares in 1990–91 to 350 million hectares in 2024–25, with most of the decline having occurred by 2009–10. The total farmland area committed to mixed and sheep farming declined across all farm sizes (Figure 2b). Only medium and large-size cropping farms, and large dairy farms increased their overall farmland footprint.

Total factor productivity (TFP) for broadacre grew by 1 per cent per year between 1977–78 and 2024–25 (ABARES Farm Productivity). This trend masks divergent growth trends across different farm sizes in broadacre and dairy industries. Generally, TFP growth rates were higher for large farms, and slower among small and medium sized farms (Figure 2c).

The average annual rate of growth in total farm cash receipts, which are sensitive to seasonal growing conditions and commodity and input prices, varied significantly across farm types — some increased, and others were stagnant or declined between 1990–91 and 2024–25 (Figure 2d).

The total value of capital of each size category increased during this period (Figure 2e), although the reasons were different across industries and farm sizes. The increase in the price per hectare throughout this period benefited broadacre and dairy farms in general, according to ABARES’ Farmland Price Indicator. The capital values of the largest farms grew the quickest because their average operating area also increased. At the same time, the smallest mixed, sheep and dairy farms experienced the slowest total capital value growth.

The rate of return on capital (excluding capital appreciation) was consistently higher among cropping farms than other broadacre industries (Figure 2f). In general, TFP growth rates and rates of return on capital (excluding capital appreciation) were correlated across industries and farm sizes.

Figure 2 – Trends in broadacre and dairy farm performance, 1990–91 to 2024–25

Chart showing the number of Australian broadacre and dairy farms by industry from 1993 to 2025. Total farm numbers decline substantially from around 92,000 farms in 1993 to about 55,000 in 2025. The largest reduction occurs between the early 1990s and around 2010, after which farm numbers stabilise. All major industries show declines over the period, including mixed farming, sheep, beef, sheep-beef, dairy and cropping. Mixed farming and beef remain the largest categories throughout. The chart illustrates the long-term structural adjustment of Australian agriculture, with fewer but generally larger farm businesses operating over time.
a. Number of broadacre farms
Chart showing average annual growth in farmland area by farm size and industry from 1990–91 to 2024–25. Farmland area generally declined across industries, with the largest decreases in mixed, sheep and small-to-medium dairy farms. Large cropping farms recorded strong growth and large dairy farms increased slightly, while beef farmland area remained relatively stable. Overall, the chart shows farmland becoming more concentrated in larger cropping and dairy enterprises.
b. Total farmland area
Chart showing average annual productivity growth for small, medium and large broadacre and dairy farms across three periods from 1991 to 2025. Productivity growth was generally strongest for large farms, while small and medium farms recorded slower growth and some periods of decline. Overall, the chart shows productivity gains were concentrated among larger farm businesses.
c. Total factor productivity, broadacre farms
Chart showing average annual growth in farm cash receipts by farm size and industry from 1990–91 to 2024–25. Growth varied considerably across industries and farm sizes, with strong increases for large cropping, beef and dairy farms, while mixed and sheep farms generally recorded stagnant or declining growth. Overall, larger farms tended to achieve stronger growth in cash receipts.
d. Total farm cash receipts
Chart showing average annual growth in farm capital value by farm size and industry from 1990–91 to 2024–25. Capital values increased across most farm types, with the strongest growth recorded by large cropping and beef farms. Growth was generally higher for larger farms, while small mixed, sheep and dairy farms experienced the slowest growth. Overall, the chart shows increasing capital concentration among larger farm businesses.
e. Total capital value
Chart showing rates of return on capital by farm size and industry. Cropping farms recorded the highest returns across all farm sizes, while dairy and mixed farms showed moderate positive returns. Sheep and beef farms generally had lower returns, with some small and medium farms recording negative rates. Overall, returns on capital tended to be higher for larger farms.
f. Average rate of return on capital (excluding capital appreciation)

Note: S, M, L refer the small, medium and large farms, where the size is based on land operating area. Size categories differ for each industry.
Source: ABARES estimates based on AAGIS and ADIS.

Method

Size is an important determinant of farm business performance. Larger broadacre and dairy farms, whether their size is measured in terms of revenue or farmland area, tend to be more profitable, invest more, and generate higher rates of return on capital than smaller farms. This is because they have more capacity to invest in productivity-enhancing investments that allow them to reduce their average marginal costs through scale.

Rates of return (excluding capital appreciation) have an important role in guiding the investment decisions of farmers and investors. Even though smaller farms record negative cash rates of return on capital (because they are unable to cover the costs of depreciation and the value of unpaid family labour), many nonetheless record a positive rate of return when capital appreciation of farmland is included. The effect of capital appreciation has the potential to influence investment decisions in the sector.

We use two definitions of farm size when measuring performance. For the cross-section dataset, farm-level data are sorted into 3-year rolling averages, after which farms are sorted into deciles based on their total cash receipts.

The time-series dataset, every farm in each industry and region is assigned into a small, medium or large category depending on the area operated by the farm business between 2019-20 and 2024-25. Terciles are used rather than deciles to ensure that there are sufficient numbers of observations available to report the productivity estimates.

The terciles differ across industry and region, so that for example, small, medium and large land areas for cropping farms in the Grains Research and Development Corporation (GRDC) western region are different to those of dairy farms. Each tercile is applied to the entire period of the dataset so that the performance of a farm of a size in an industry and region can be compared over time.

Variables

The tables for download (below) include statistics on:

  • share of total output produced
  • share of operating area operated, at 30 June of each year
  • total cash receipts
  • total cash costs
  • farm cash income
  • farm business profit
  • total capital excluding leased equipment, at 1 July of year
  • farm business equity ratio
  • rate of return on capital, without capital appreciation
  • rate of return on capital, with capital appreciation
  • area operated, at 30 June of each year
  • farm population
  • total factor productivity (TFP) index
  • input index
  • output index.

TFP, input and output indexes are provided only for the broadacre sector for the time-series dataset. Farm survey definitions and methods used to produce these statistics are available on the Farms Surveys Definitions and Methods page of the ABARES website.

Source data

This article provides statistics sourced from the following ABARES farm surveys:

  • Australian Agricultural and Grazing Industries Survey (AAGIS).
  • Australian Dairy Industry Survey (ADIS).

Farms in the broadacre and dairy industries are separated into size deciles according to their farm total cash receipts. Statistics for the broadacre industry are further split into the sub-industries of cropping (wheat and other crops), beef, sheep, mixed livestock-crops, and sheep-beef. The cropping industry is separated into the Grains Research and Development Corporation (GRDC) Western, Northern and Southern regions and the beef industry into the Meat & Livestock Australia (MLA) Northern and Southern regions. Data are presented in 12 tables according to classification by industry and region.

Since farm performance varies significantly from year to year because of the volatility of seasonal growing conditions and commodity prices, the statistics for each year (such as 2023–24) are the averages that year and the 2 preceding years (for example, 2021–22, 2022–23 and 2023–24). This provides a more meaningful measure of farm performance than if the estimates were based on a single year’s data.

Industry and region coverage

Statistics for broadacre farms are further split into the cropping, mixed livestock-crops, sheep and beef industries. The cropping industry is further separated into the Grains Research and Development Corporation Western, Northern and Southern regions, and the beef industry is separated into the Meat & Livestock Australia Northern and Southern regions. Data are presented in dynamic tables according to classification by industry and region.

Further reading

Farm survey definitions and methods used to produce these statistics are available on the ABARES website. For further analysis and information about the design of these statistics see Boult and Jackson (2019), Boult and Chancellor (2020) and Zhao, Sheng and Gray (2012).

Download data

Disaggregating farm performance statistics by size: 2024-25

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