8/24/2023 0 Comments Farming 2020 download the newFor example, the average rate of return to capital (excluding capital appreciation) increased from 3.2% in 2020–21 to 3.8% in 2021–22, and is projected to be 3.6% in 2022–23. Other measures of farm profitability, such as average profit at full equity and the average rate of return to capital, also improved in 2021–22, and are expected to either improve further or remain largely unchanged in 2022–23. In 2022–23 average farm cash income is projected to increase by a further 10% to $361,000 per farm. For information about the content of this dashboard contact ABARES.Īt the national level, the average farm cash income of dairy farms increased by 18% in 2021–22 to $327,700 per farm. The Power BI dashboard may not meet accessibility requirements. For these farms, recent increases in interest rates are expected to have a material impact on total farm costs in 2022–23. Another one-third of dairy farms had debts between $300,000 and $1.3 million per farm, and the remaining one-third of farms had debt of $1.3 million or more. At 30 June 2022, one-third of dairy farms had a total debt of less than $300,000 per farm, with many of these farms holding little to no debt.The impacts of higher interest rates vary from farm to farm, depending on debt holdings. Higher market interest rates are expected to result in dairy farm interest costs averaging $89,300 per farm in 2022–23, an increase of 120% on the previous year.Supplementary fodder, a major cost item for many dairy farmers, is expected to increase by around 8% in 2022–23 to an average of $332,100 per farm as a result of higher prices for feed grains.However, the positive effect of higher milk prices is expected to outweigh the negative effect of a drop in milk production per farm. As a result, milk production per farm is expected to be lower in most states in 2022–23. While milk prices are at record levels, seasonal conditions during 2022–23 have not been ideal in many dairy farming regions, particularly in eastern Australia where excessively wet conditions hampered grazing and fodder production systems.Average farm cash incomes in all states are now considerably higher in real terms than their corresponding longer term (10 year) averages.The increase in average farm cash income in 2022–23 follows year-on-year increases in 2020––22.This group of farms is estimated to account for 12% of industry turnover in 2022-23. The bottom 20% of farms are projected to earn an average farm cash income of negative $66,000 per farm in 2022–23, at an average rate of return of -0.9%.This group of farms is estimated to account for 48% of dairy industry output (turnover) in 2022–23. There is wide variability across farms, with the top 20% of dairy farms projected to earn an average farm cash income of $1.17 million per farm in 2022–23, at an average rate of return of around 7%.The average rate of return to capital is projected to be 3.6% in 2022-23, compared with 3.7% in 2021-22. The average farm cash income across all dairy farms in Australia in 2022–23 is projected to be $361,000 per farm – an increase of 10% on the previous year, and a record high for the industry in real terms (see methodology).
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