Northern beef farm incomes forecast to improve in 2011-12 – ABARES
29 June 2012
The projected farm cash incomes for northern beef cattle producers are expected to average higher in 2011-12, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Australian Beef: Financial Performance of beef cattle producing farms, 2009-10 to 2011-12.
In northern Australia, average farm cash income is expected to rise from $90,690 per farm business in 2010-11, to $118,900 in 2011-12. The increase in average returns is expected to be underpinned by lower costs, with the largest reduction in cattle and fodder purchases, as well as lower expenditure on repairs, maintenance and interest payments.
Producers across all herd sizes in the north are forecast to register an improvement in farm cash incomes, with higher cash receipts expected to more than offset the higher costs for those small (100-400 head) and medium (400-1600 head) producers. For large (1600-5400 head) and very large (5400+ head) producers, the forecast rise in cash income is expected to result from a reduction in farm costs.
In northern Australia, the very large corporate farm businesses (public companies, large private companies and Indigenous corporations) are forecast to register a significant rise in average farm cash incomes. In 2010-11, average per farm cash incomes for corporate businesses was $250,350, which is expected to rise to $1.7 million in 2011-12. In contrast, family operated farm cash incomes are expected to rise from an average of $86,190 in 2010-11, to $105,200 in 2011-12. While the size of family and corporate enterprises in northern Australia vary significantly, the reduction in live cattle exports appears to have impacted family operated farms much more in 2011-12.
In contrast to northern producers, farm cash incomes in southern Australia in 2011-12 are expected to average 13% lower than the corresponding period last year, averaging $81,600. The decline is expected to be underpinned by a fall in cash receipts, with fewer cattle sold, lower cattle prices, along with a drop in crop receipts.