Australian lamb: financial performance of lamb producers, 2014-15 to 2016-17

Overview
This report presents the detailed financial performance estimates of grain farmers in 2014-15, 2015-16 and 2016-17, and discusses incomes, investment, farm debt, and costs of production in a historical context. The report draws on data from the ABARES annual Australian Agricultural and Grazing Industries Survey (AAGIS).

This report is a collation of chapters that have been previously published online.

Farm financial performance (published 18 May 2017) This chapter presents estimates of the incomes, profits, costs and rates of return for grain farms. Key Issues
Average farm cash income of Australian grain farms is projected to increase by around 27 per cent in 2016-17 to $290,000 per farm. Farm cash income in 2016-17 is projected to be the highest in over 20 years, an estimated 85 per cent higher than the average between 2000-01 and 2015-16 (in real terms*). The expected increase in incomes is a result of increased production of wheat, barley and oilseeds.

• Note: real dollar values are adjusted to remove the effect of inflation.

Farm debt and equity (published 12 July 2017) This chapter presents estimates of the debt, equity, and debt-servicing capacity for grain farms. Key Issues
Average farm debt of Australian grain farms is estimated to have increased by around 2 per cent to around $853,000 in 2015-16 (in 2016-17 dollars). Average grain farm debt is projected to increase a further 3 per cent in 2016-17. From 2000-01 to 2015-16 the average equity ratio of grain farms has fluctuated around 85 per cent. The average proportion of farm receipts needed to fund interest payments is projected to fall to just under 6 per cent in 2016-17.

Farm capital and investment (published 8 August 2017) This chapter presents estimates of farm capital and farm investment for grain farms. Key Issues
The total value of capital for Australian grain farms increased by 77 per cent in real terms from 2000-01 to 2015-16. On a per farm basis, total capital more than doubled to around $5.9 million per farm. The average value of land and fixed improvements per hectare of grain farms doubled from 2000-01 to 2015-16, with an average annual return on land appreciation of 5.2 per cent.

Physical characteristics (published 9 November 2017) This chapter presents estimates of physical characteristics for grain farms. Key Issues
From 2000–01 to 2015–16 the number of Australian farms sowing at least 40 hectares sown to grains, oilseeds or pulses fell by 27 per cent. The number of grain farms planting more than 1,200 hectares of grains increased with these larger farms accounting for an increased share of total output of grains, pulses and oilseeds. Total Australian grain production in 2015–16 was higher than in 2000–01 despite fewer grain farms and seasonal variations in production.