Overview
Since 2007 ABARES has conducted an annual survey of vegetable growing farm businesses. These surveys provide comprehensive information on the physical and financial characteristics of vegetable growing farms in each state. This report contains results from the latest survey of vegetable farms conducted between March and June 2014, covering 2012-13 and 2013-14.
Key Issues
• In 2013-14, average farm cash income is estimated to have declined to $156 000, 4 per cent lower than in 2012-13. Generally average to above average seasonal conditions helped growers to maintain the high yields of 2012-13. Overall vegetable production was also higher because the average area planted to vegetable crops increased. However, the resulting increase in vegetable cash receipts was partially offset by lower vegetable prices.
• Estimated farm cash income in 2013-14 was mixed between the states, increasing in New South Wales, Victoria and Western Australia, but declining elsewhere. Average farm cash income is estimated to have increased most in Victoria, where vegetable production and prices increased for the main vegetable commodities grown. Farm cash income is estimated to have decreased most in Queensland, where lower vegetable prices offset higher production and expenditure on hired labour increased in line with an increase in the average area of vegetables planted and harvested.
• In 2012-13, the most recent year for which data is available, vegetable farm business debt (in nominal terms) was $535 000 on average. Between 2005-06 and 2012-13 estimated average farm debt has increased, as did the average value of total capital as a result of higher land values, particularly for vegetable growing farms close to large metropolitan areas. Working capital debt increased the most between 2007-08 and 2012-13, overtaking debt attributable to land purchases. After initially increasing, the ratio of total interest paid to total cash receipts has stabilised at about 5 per cent, and the equity ratio has remained around 80 per cent over the eight years to 2012-13.