Agriculture, Fisheries and Forestry in Queensland, 2015

Agriculture, Fisheries and Forestry in Queensland, 2015 ABARES

Agriculture, Fisheries and Forestry in Queensland, 2015

Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences

About my region 15.53

April 2015

Agriculture, Fisheries and Forestry in Queensland, 2015 ABARES

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Cataloguing data

ABARES 2015, Agriculture, Fisheries and Forestry in Queensland, 2015, About my region 15.53, Canberra, April. CC BY 3.0.

ISBN TBA
ABARES project 43009

Internet

Agriculture, Fisheries and Forestry in Queensland 2015is available at agriculture.gov.au/abares.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)

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The Australian Government acting through the Department of Agriculture, represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in preparing and compiling the information and data in this publication. Notwithstanding, the Department of Agriculture, ABARES, its employees and advisers disclaim all liability, including for negligence and for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon information or data in this publication to the maximum extent permitted by law.

Acknowledgements

ABARES relies on the voluntary cooperation of farmers participating in the annual Australian Agricultural and Grazing Industries Survey, Australian Dairy Industry Survey, and Australian Vegetable Growing Farms Survey to provide data used in the preparation of this report. Without their help, these surveys would not be possible. ABARES farm survey staff collected most of the information presented in this report through on-farm interviews with farmers.

This state profile was updated by Therese Thompson,Peter Martin, Haydn Valle, Timothy Connolly, Lucy Randall, Kasia Mazur and Sharan Singh.

Contents

1Regional overview

Employment

2Agriculture sector

Value of agricultural production

Number and type of farms

Farm financial performance—Queensland

3Fisheries sector

4Forestry sector

References

Tables

Table 1 Number of farms, by industry classification, 2012–13

Table 2 Financial performance, Queensland broadacre industries, 2012–13to 2014–15, average per farm

Table 3 Farm cash income of Queensland broadacre farms, by region, 2013–14to 2014–15, average per farm

Table 4 Financial performance, Queensland dairy industry, 2012–13to 2014–15, average per farm

Table 5 Physical and financial performance, vegetable growing farm businesses, Queensland, 2012–13and 2013–14

Figures

Figure 1 Employment profile, Queensland, November 2014

Figure 2 Value of agricultural production, Queensland, 2012–13

Figure 3 Distribution of farms by estimated value of agricultural operations, Queensland, 2012–13

Figure 4 Real farm cash income, broadacre industries, average per farm

Figure 5 Real farm cash income, grains industry, average per farm

Figure 6 Real farm cash income, beef industry, average per farm

Figure 7 Real farm cash income, dairy industry, average per farm

Figure 8 Real farm cash income, vegetable growing farm businesses, Queensland, 2005–06to 2013–14

Figure 9 Area of native forest, by tenure

Maps

Map 1 Broad land use of Queensland

Map 2 Agricultural industries of Queensland

Map 3 ABARES Australian broadacre zones and regions

1Regional overview

Queensland covers a total area of around 1730000square kilometres and is home to approximately 4332700people (ABS 2011). Agricultural land in Queensland occupies 1475850square kilometres, or around 85per cent of the state. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 197460square kilometres, or 11per cent of the state. The most common land use by area is grazing natural vegetation, which occupies 1182180square kilometres or 68per cent of the state.

Map 1 Broad land use of Queensland

Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)

Map 2 Agricultural industries of Queensland

Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)

Employment

Australian Bureau of Statistics (ABS) data from the 2014 Labour Force Surveyindicate that around 2.3 millionpeople were employed in Queensland. Queensland accounts for 20per cent of total employment in Australia and 16per cent of all people employed in the Australian agriculture, forestry and fishing sector.

Health care and social assistance was the largest employment sector with 294700people followed by retail trade with 261000people (Figure 1). Other important employment sectors in the state were construction (225900people), education and training(179800people) and,professional, scientific and technical services (176500 people). The agriculture, forestry and fishing sector employed 52600people, representing 2per cent of the state’s workforce.

Figure 1 Employment profile, Queensland, November 2014

Source: Australian Bureau of Statistics

2Agriculture sector

Value of agricultural production

In 2012–13,the gross value of agricultural production (GVAP) in Queensland was $10billion, which was 21per cent of the total gross value of agricultural production in Australia ($48billion).

The most important commodity in Queensland based on the gross value of agricultural production was cattle and calves (Figure 2). In 2012–13, cattle and calves contributed 34per cent (around $3.5billion) to the value of agricultural production in the state. Fruit and nuts (excluding grapes) contributed 11per cent ($1billion) to the value of agricultural production in the region, with the major crops being bananas ($457million), avocados ($112million) and mandarins ($78million). Sugar caneand vegetables each accounted for 10per cent ($1billion, each), andcotton accounted 7per cent ($677million).

Figure 2 Value of agricultural production, Queensland, 2012–13

Source: Australian Bureau of Statistics

Number and type of farms

In 2011–12,there were 28078farms in Queensland with an estimated value of agricultural operations of more than $5000 (Table 1). The state accounts for 21per cent of all farm businesses in Australia.

Farms are classified in Table 1 according to the activities that generate most of their value of production. Beef cattle farms (12741farms) were the most common, accounting for 48per cent of all farms in Queensland.

Table 1 Number of farms, by industry classification, 2012–13

Industry Classification / Queensland / Australia
no. / % / no. / %
Beef Cattle / 12741 / 48 / 39380 / 31
Sugar cane / 2912 / 11 / 3304 / 3
Fruit and nuts / 1630 / 6 / 10136 / 8
Grain growing / 1315 / 5 / 11595 / 9
Mixed grains and livestock / 1060 / 4 / 11558 / 9
Vegetable / 932 / 4 / 3980 / 3
Other livestock / 811 / 3 / 4123 / 3
Dairy / 634 / 2 / 7612 / 6
Other Crop growing / 485 / 2 / 1519 / 1
Nurseries, Cut Flowers and Turf / 367 / 1 / 1558 / 1
Mixed livestock / 351 / 1 / 6434 / 5
Cotton / 270 / 1 / 600 / 0
Sheep / 215 / 1 / 11938 / 9
Other / 2819 / 11 / 14944 / 12
Total Agriculture / 26541 / 100 / 128682 / 100

Note: Estimated value of agricultural operations greater than $5000.
Source: Australian Bureau of Statistics

There is a large percentage of small farms in the region in terms of their value of agricultural output. Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size. Around 38per cent of farms in Queensland had an EVAO of less than $50000 (Figure 3). These farms accounted for only 2per cent of the total value of agricultural operations in 2012–13. In comparison, 22per cent of farms in the state had an EVAO of more than $350000and accounted for an estimated 79per cent of the total value of agricultural operations in the state.

Figure 3 Distribution of farms by estimated value of agricultural operations, Queensland, 2012–13

Source: Australian Bureau of Statistics

Farm financial performance—Queensland

Each year, ABARES interviews Australian broadacre, dairy and vegetable producers as part of its annual survey program. Broadacre industries covered in this survey include the grains, grains–livestock, sheep, beef and sheep–beef industries. The information collected is a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agricultural and grazing industries survey (AAGIS), Australian dairy industry survey (ADIS), and Australian vegetable growing industry survey to report estimates of financial performance indicators (Box 1) for broadacre, dairy and vegetable farms in Queensland.

Box 1 Definitions

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, farmbusinessprofit + rent + interest + financeleasepayments – 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.

Performance of broadacre farms—Queensland

In 2014–15, farm cash incomes are also projected to rise in Queensland mainly because of higher beef cattle prices. Drought continued to affect Queensland broadacre farms in 2014-15, subduing crop and livestock production and maintaining high turn-off of cattle and sheep.

Average farm cash incomes are projected to increase in all regions of Queensland in 2014–15except the Central North and the West and South West (Table 3). Relatively low farm cash incomes were recorded in most regions in 2013–14and high turn-off of beef cattle resulted in reduced herd sizes.

Receipts from beef cattle are projected to increase in 2014–15. However, overall, crop receipts are expected to be reduced, with low receipts from winter grain crops and while a large increase is expected in grain sorghum production, businesses are likely to sell a part of this production in 2015–16.

Average total cash costs are projected to decrease by around 5percent in 2014–15, mainly as a result of a projected decrease in expenditure on fodder, fuel and interest payments and a decline in beef cattle purchase in some regions.

Despite higher beef cattle receipts, average farm cash income for Queensland broadacre farms is projected to increase only slightly to an average of $79 000 a farm in 2014–15 (Table 2 and Figure 4). This is only a small increase from the $68 200 recorded in 2013–14 and is still around 10 per cent below the average for the decade ending 2013–14.

Figure 4 Real farm cash income, broadacre industries, average per farm

p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Table 2 Financial performance, Queensland broadacre industries, 2012–13to 2014–15, average per farm

Performance indicator / units / 2012–13 / 2013–14p / RSE / 2014–15y
Total cash receipts / $ / 367550 / 356600 / (4) / 363000
Total cash costs / $ / 270830 / 288400 / (5) / 284000
Farm cash income / $ / 96720 / 68200 / (12) / 79000
Farms with negative farm cash income / % / 32 / 31 / (12) / 25
Farm business profit / $ / –5680 / –77400 / (13) / –54000
Profit at full equity excluding capital appreciation / $ / 36500 / –32600 / (28) / –11000
Farm capital at 30 June a / $ / 4989410 / 5022300 / (3) / na
Farm debt at 30 June b / $ / 592510 / 618100 / (8) / 612000
Equity ratio bd / % / 89 / 87 / (1) / na
Rate of return excluding capital appreciatione / % / 0.7 / –0.6 / (29) / –0.2
Off-farm income of owner manager and spouse b / $ / 24390 / 28300 / (10) / na

aExcludes leased plant and equipment. bAverage per responding farm. cFarm capital minus farm debt. dEquity expressed as a percentage of farm capital. e Rate of return to farm capital at 1 July. p Preliminary estimates. y Provisional estimates. na Not Available. Figures in parentheses are standard errors expressed as a percentage of the estimate provided
Source: ABARES Australian Agricultural and Grazing Industries Survey

Table 3Farm cash income of Queensland broadacre farms, by region, 2013–14to 2014–15, average per farm

Region / units / 2013–14p / RSE / 2014–15y
311: QLD Cape York and the Gulf / $ / 14700 / (481) / 440000
312: QLD West and South West / $ / 208000 / (37) / 134000
313: QLD Central North / $ / 88300 / (55) / 41000
314: QLD Charleville - Longreach / $ / 75100 / (44) / 96000
321: QLD Eastern Darling Downs / $ / 71500 / (26) / 84000
322: QLD Darling Downs and Central Highlands / $ / 81200 / (19) / 93000
331: QLD South Queensland Coastal / $ / 32700 / (28) / 46000
332: QLD North Queensland Coastal / $ / 15000 / (102) / 31000

pABARES preliminary estimates. yABARES provisional estimates. na Not available. Figures in parentheses are standard errors, expressed as a percentage of the estimate provided.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Map 3 ABARES Australian broadacre zones and regions

Note: Each region is identified by a unique code of three digits. The first digit identifies the state or territory, the second digit identifies the zone and the third digit identifies the region.

Source: ABARES

Performance of grains industry farms—Queensland

Average farm cash receipts decreased for Queensland grains industry farms in 2013–14as a result of reduced production of summer and winter grain, oilseed and pulse crops. Farm cash income for grains industry farms in Queensland decreased to average around $91000a farm in 2013–14, after an historic high of $211000in 2012–13 (Figure 5).

In 2014–15, production of winter crops is estimated to have declined by around 15per cent and despite an expected increase in production of grain sorghum and other summer crops, total crop receipts are expected to decline. On mixed enterprise farms decreased receipts from beef cattle due to reduced turn-off are alsoexpected to contribute to lowerprojected farm cash receipts. The reduction in receipts is expected to be only partly offset by reduced expenditure on interest payments, repairs and maintenance, fuel and livestock purchase compared with 2013–14. As a result, farm cash income is projected to decline slightly to average $84800a farm, the lowest farm cash income since 2006–07when drought severely reduced incomes for Queensland grains industry farms.

Figure 5 Real farm cash income, grains industry, average per farm

p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of beef industry farms—Queensland

In 2013–14, expansion of drought conditions resulted in a 20 per cent increase in the average number of cattle sold per farm by Queensland beef industry farms. The increase in turn-off more than offset the reduction in the average price received for cattle sold, resulting in an increase in farm receipts. This increase was more than offset by increased expenditure on fodder (which almost doubled), fuel and interest payments, resulting in average farm cash income for beef industry farms declining to average $68200a farm (Figure 6).

In 2014–15,receipts from beef cattle are projected to increase as a result of higher beef cattle prices and continued high cattle turn-off during the first half of 2014–15. Farm cash costs are also projected to increase, mainly as a result of increased expenditure on repairs and maintenance and despite an expected reduction in expenditure on beef cattle purchases and fuel. Farm cash income for Queensland beef industry farms is projected to increase slightly to average $82000a farm in 2014–15 and still around 5per cent below the average for the previous 10years, in real terms (Figure 6).

Figure 6 Real farm cash income, beef industry, average per farm

p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of dairy industry farms— Queensland

In 2013–14,average farm cash incomes increased in most states as a result of higher milk prices. Nationally, average farm cash income increased from $44130in 2012–13to $163900in 2013–14. In Queensland, there was only a very small increase in the average milk price received and both total milk production and the number of dairy farms declined. For Queensland dairy farms, average farm cash income increased only slightly from $71520in 2012–13to $73800in 2013–14 (Table 4 and Figure 7).

Figure 7 Real farm cash income, dairy industry, average per farm

p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Dairy Industry Survey

In 2014–15, a further small decrease is expected inmilk production in Queensland. This decrease is projected to be offset by a small increase in farmgate milk prices. Overall, average farm cash income is expected to remain largely unchanged in Queensland at an average of $73000afarm, or around 30per cent below the average for the previous 10years, in real terms.

Nationally, the average farm cash income of Australian dairy farms is projected to decrease in 2014–15 with lower farmgate milk prices in most states and regions except Queensland, northern New South Wales and Western Australia. The overall average farm cash income of Australian dairy farms is projected to decrease to average $97 000 a farm in 2014–15, around 14 per cent below the 10-year average to 2013–14.

Table 4 Financial performance, Queensland dairy industry, 2012–13to 2014–15, average per farm

Performance indicator / unit / 2012–13 / 2013–14p / RSE / 2014–15y
Farm cash income / $ / 71520 / 73800 / (30) / 73000
Farm business profit a / $ / –11540 / –16900 / (157) / –38000
Rate of return excluding capital appreciation b / % / 0.7 / 0.8 / (95) / 0.1

a Defined as farm cash income plus buildup in trading stocks, less depreciation and the imputed value of operator partner and family labour. b Defined as profit at full equity, excluding capital appreciation, as a percentage of total opening capital. Profit at full equity is defined as farm business profit plus rent, interest and lease payments less depreciation on leased items. p Preliminary estimates. y Provisional estimates. na Not available. Figures in parentheses are standard errors expressed as a percentage of the estimate provided.
Source: ABARES Australian Dairy Industry Survey