Grain farm incomes ease

30 Jun, 2015 08:10 AM
Farm cash incomes in 2013–14 were boosted by high yields in WA and SA

FARM cash income of Australian grain producing farms is estimated to have declined in 2014–15 to average $171,000 per farm, around 24 per cent higher than the 10-year average to 2013–14, according to the Australian Bureau of Agricultural and Resource Economics (ABARES).

ABARES executive director Karen Schneider said the results followed a period of relatively high income in recent years compared with historical averages.

“Nationally, farm cash income of grain producing farms increased from $189,590 in 2012–13 to $213,100 in 2013–14, or 68 per cent above the 10 year average to 2012–13,” Ms Schneider said.

“Farm cash incomes in 2013–14 were boosted by high yields in Western Australia and South Australia that resulted in the second largest winter crop on record.”

Ms Schneider said the decline in farm cash incomes in 2014–15 reflected reduced winter grain yields in all regions and lower prices for wheat, oilseeds and pulses.

“For southern region grain producing farms, farm cash income is estimated to have decreased to average $184,000 a farm in 2014–15, but still 43 per cent above the 10-year average to 2013?14,” Ms Schneider said.

“Similarly for western region grain producing farms, farm cash income is estimated to have decreased in 2014–15 to average $262,000 a farm, 24 per cent above the 10-year average to 2013?14.

“Dry seasonal conditions in the northern region have resulted in estimated farm cash income of grain producing farms falling to average $79,000 a farm in 2014–15, around 24 per cent below the 10-year average to 2013?14.”

Ms Schneider said that farm debt — an important source of funding for investment and ongoing working capital — had increased by less than 1 per cent during 2013–14 on the back of strong returns for many grain producing farms.

“Around 47 per cent of Australian grain producing farms reduced farm debt in 2013–14,” Ms Schneider said.

The results were released today in Australian grains: Financial performance of grain producing farms 2012–13 to 2014–15.

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30/06/2015 8:49:56 AM

Where are you Jock? Guess the verdict on deregulation is in. More money in farmers pockets. Less money in AWB coffers.
Jack Munro
30/06/2015 9:35:12 AM

Genuinely love to see your justification for this one Jock...? Hard evidence, facts and actual results have proven to be your enemy over the journey...
Mock Junro
30/06/2015 12:12:24 PM

Amazing what increased competition and interntaional investment can do. "around 24 per cent higher than the 10-year average to 2013–14," Those multinationals must really want that quality Australian grain and are willing to pay top dollar for it.
What the
30/06/2015 1:04:35 PM

Since the 1955 the real value of grain farm gate has collapsed by two third adjusted for the rural inflation rate, that is if we were to get the same value for grain today that we were in 1955 we should be getting around $635 per tonne for APW farm gate. The reality is farmer productivity improvements (competition between farmers), hand in the till costs by the industry and deflation (the biggest culprit) from grains commodity subsidisation by Europe and USA in its various guises has devastated the real returns per tonne to farmers
Jock Munro
30/06/2015 1:20:56 PM

Mock you cannot be serious when you say that competition would have increased our returns. It might pay to acknowledge that several seasons of the ten year period were droughts. We know that our returns would have been higher with the single desk-our customers are telling us that our wheat has lost its relative value and we are moving out of premium middle eastern markets to Asia. We also know that in the East we are being gouged in the supply chain because we do not have the leverage that the national pool single desk gave us.
Zero till
30/06/2015 7:30:44 PM

Come on Jock lets be frank and honest, most of your income on the farm comes from sheep. Maybe a paddock or two of crop but not 100% year in year out that myself and others posting derive income from.
30/06/2015 8:08:28 PM

A recently retired well known trader mentioned he misses the single desk, end of cheap wheat out of Australia. If you look in the public forum you can find tenders from years gone by and why Australia actually got the sales. Jock is well aware of who I mean they locked horns many a times. Was always a entertaining stoush.
Jock Munro
1/07/2015 9:41:59 AM

Incognito, And why would our foreign customers be telling us that they are not prepared to pay a premium for our wheat now? Why are we moving out of premium middle eastern markets?
1/07/2015 5:34:24 PM

Another year of strong basis calls you a liar Jock or at the very least uneducated. The basis is pure unadulterated demand. A premium above USDA if you like. Once again end users are bidding up Australian wheat prices because we have the best wheat quality in the world.
1/07/2015 5:41:15 PM

jock check out the tenders and you will understand the myth of the premium and you have my number ring to discuss
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