Farm financial performance – Tasmania

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

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Farm cash income of broadacre farms in Tasmania is projected to have declined by 25 per cent in 2015–16 to an average of $96,000 a farm. This would be lower than the relatively high farm cash income recorded in 2014–15 of $128,500 but still around 36 per cent above the 10-year average to 2014–15.

Tasmanian broadacre cash receipts are projected to have declined by 8 per cent in 2015–16 because of reduced production resulting from dry seasonal conditions. Receipts from beef cattle are projected to decrease from the historical high recorded in 2014–15. Receipts from sheep, lambs, and wool are projected to decrease despite increased prices for wool, because of reduced livestock turn-off and lower wool production.

Total cash costs are expected to have increased in by 1 per cent in 2015–16. This is driven by higher expenditure on fodder resulting from dry seasonal conditions and small increases in most other farm costs except livestock purchases.

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 Tasmania from 2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Financial performance, Tasmaniabroadacre industries 2013–14 to 2015–16 average per farm
Performance indicator2013–142014–15pRSE2015–16y
Total cash receipts ($) 303,940388,000(8)358 000
Total cash costs ($)234,800259,600(10)262 000
Farm cash income ($)69,140128,500(10)96 000
Farms with negative farm cash income (%)2010(52)12
Farm business profit ($)8,80026,700(39)-3 000
Profit at full equity a ($)37,11058,400(21)29 000
Farm capital at 30 June b ($)3,608,7903,956,200(7)na
Farm debt at 30 June c ($)409,130454,000(18)472 000
Equity ratio c d (%)8988(2)na
Rate of return a e (%)1.01.5(20)0.7
Off-farm income c f ($)33,03031,500(22)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

Average farm cash incomes of beef industry farms nearly doubled in 2014–15 to average $106,000 a farm. Higher beef cattle turn-off in combination with an increase in average sale prices received, resulted in beef cattle receipts increasing on Tasmanian beef industry farms. In addition, reduction in expenditure on purchases of beef cattle together with lower interest rates reduced farm cash costs.

In 2015–16, farm cash income of Tasmanian beef industry farms is projected to have remained largely unchanged, averaging $105,000 a farm and well above the 10-year average. Beef cattle receipts are projected to have declined with reduced cattle turn-off and sale of lighter weight cattle as a result of dry seasonal conditions.

This decline contrasts with the increase in beef cattle receipts expected nationally.

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 Tasmania from 2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

In 2014–15, farm cash income of Tasmanian sheep industry farms is estimated to have increased to average $149,000 a farm. Farm cash income increased as a result of higher sheep and lamb turn-off together with an increase in the quantity of wool sold and higher prices received for sheep and wool.

In 2015–16, farm cash income of Tasmanian sheep industry farms is projected to have declined by 47 per cent to an average of $79,000 a farm, around 13 per cent below the 10-year average to 2015–16. Dry seasonal conditions are expected to have resulted in lower farm receipts as a result of reduced prices for sheep and lambs sold, reduced turn-off of sheep and lower wool production. In addition, farm cash costs are projected to have risen as a result of increased expenditure on fodder purchases.

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 Tasmania from   2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Average farm cash income of Tasmanian dairy farms decreased from an average of $238,130 a farm in 2013–14 to $221,800 in 2014–15. An increase of 11 per cent in average milk production per farm was not sufficient to offset lower prices received for milk and increased farm cash costs, particularly expenditure on fodder.

In 2015–16, farm cash income of Tasmanian dairy industry farms is projected to have declined further to an average of $123,000 a farm, around 15 per cent below the 10-year average to 2015–16. This reflects the effects of lower forecast milk prices and a further increase in expenditure on fodder purchases as a result of drier 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 Tasmania from   2001–02 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous paragraphs.
Note: y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Financial performance, Victoria dairy industry 2013–14 to 2015–16 average per farm
Performance indicator2013–142014–15pRSE2015–16y
Total cash receipts ($) 1,115,7101,162,600(6)1,086,000
Total cash costs ($)877,580940,800(7)963,000
Farm cash income ($)238,130221,800(10)123,000
Farms with negative farm cash income (%)0.06.0(83)17
Farm business profit ($)123,100112,700(24)–14,000
Profit at full equity a ($)258,530256,900(14)137,000
Farm capital at 30 June b ($)5,684,9806,403,300(9)na
Farm debt at 30 June c ($)1,740,4401,728,600(14)1,851,000
Equity ratio c d (%)6973(4)na
Rate of return a e (%)4.74.1(14)2.0
Off-farm income c f ($)6,73035,700(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

There were an estimated 270 vegetable growing farms in Tasmania in 2014–15. Most of these farms were located in the north of the state along the coastal fringe and through the northern midlands. Average farm cash income of vegetable growing farms in Tasmania is estimated to have increased by 40 per cent in 2015–16 to around $267,000. This was largely the result of an increase in area planted to potatoes and increased yields resulting in higher receipts for potatoes. The average area of vegetable farms in Tasmania in 2014–15 was around 367 hectares, of which 30 hectares was planted to vegetables.

Selected physical and financial results, Australian vegetable-growing farms, by state, 2014–15 and 2015–16, average per farm
Indicator2014–15pRSE% change from 2013–142015–16y% change from 2014–15
Vegetable cash receipts ($)439,700(12)54539,00022
Area planted to vegetables (hectares)30(8)21316
Quantity of vegetables produced (tonnes)1,527(10)441,69011
Farm cash income ($)190,400(18)97267,00040

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

Farm cash income is estimated to have increased in 2014–15 to average $190,400 a farm. Lower overall vegetable receipts, mostly as a result of lower prices for potato, green peas and green bean, were more than offset by a reduction in estimated average total cash costs. Cash costs declined in 2014–15 relative to 2013–14, including hired labour, fertiliser, contracts paid and fuel.

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 Tasmania from   2005–06 to 2015–16 in 2015–16 dollars. Farm cash income has been consistently positive. The figure is discussed in the previous paragraphs.
Note: y Provisional 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:
02 May 2017