Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North Region of South Australia

Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia, 2015 ABARES

Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia, 2015

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

About my region 15.36

April 2015

Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia, 2015 ABARES

© Commonwealth of Australia 2015

Ownership of intellectual property rights

Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to as the Commonwealth).

Creative Commons licence

All material in this publication is licensed under a Creative Commons Attribution 3.0 Australia Licence, save for content supplied by third parties, logos and the Commonwealth Coat of Arms.

Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided you attribute the work. A summary of the licence terms is available from creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from creativecommons.org/licenses/by/3.0/au/legalcode.

Cataloguing data

ABARES 2015, Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia, 2015, About my region 15.36, Canberra, April. CC BY 3.0.

ISBN 978-1-74323-106-7
ABARES project 43009

Internet

Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia 2015is available at agriculture.gov.au/abares.

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

Postal address GPO Box 858 Canberra ACT 2601
Switchboard +61262723933
Facsimile +61262722001
Email
Web agriculture.gov.au/abares

Inquiries about the licence and any use of this document should be sent to .

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 regional profile was updated by Therese Thompson, Peter Martin, Haydn Valle, Timothy Connolly, Lucy Randall and Sharan Singh.

Contents

1Regional overview

Employment

2Agriculture sector

Value of agricultural production

Number and type of farms

Farm financial performance—South Australia

3Fisheries sector

4Forestry sector

References

Tables

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

Table 3 Financial performance, South Australia broadacre industries, 2012–13to 2014–15, average per farm

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

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

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

Figures

Figure 1 Employment profile, Barossa-Yorke-Mid North region, November 2014

Figure 2 Value of agricultural production, Barossa-Yorke-Mid North region, South Australia, 2012–13

Figure 3 Distribution of farms by estimated value of agricultural operations, Barossa - Yorke - Mid North, South Australia, 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, sheep 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, South Australia, 2005–06to 2013–14

Figure 9 Area of native forest, by tenure

Maps

Map 1 Broad agricultural land use of the Barossa-Yorke-Mid North region of South Australia

Map 2 Agricultural industries of the Barossa-Yorke-Mid North region of South Australia

Map 3 ABARES Australian broadacre zones and regions

1

Agriculture, Fisheries and Forestry in the Barossa-Yorke-Mid North region of South Australia, 2015 ABARES

1Regional overview

The Barossa-Yorke-Mid North region of South Australia is located in the south-east of the state, north of Adelaide (Map 1). The region comprises fourteen local government areas and the major regional towns of Clare, Peterborough, Port Pirie, Tanunda and Wallaroo. The region covers a total area of around 37700square kilometres or 4per cent of South Australia’s total area and is home to approximately 106500people (ABS 2011).

Agricultural land in the Barossa-Yorke-Mid North region occupies 34930square kilometres, or 93per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 2030square kilometres, or 5per cent of the region. The most common land use by area is dryland cropping,which occupies 15460square kilometres or 41per cent of the Barossa-Yorke-Mid North region.

Map 1Broad agricultural land use of the Barossa-Yorke-Mid North region of South Australia

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

Map 2 Agricultural industries of the Barossa-Yorke-Mid North region of South Australia

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

Employment

Australian Bureau of Statistics (ABS) data from the 2014Labour Force Survey indicate that around 50200people were employed in the Barossa-Yorke-Mid North region. The Barossa-Yorke-Mid North region accounts for 6per cent of total employment in South Australia and 22per cent of all people employed in the South Australian agriculture, forestry and fishing sector.

Agriculture, forestry and fishing was the largest employing sectorwith 9800people (Figure 1), representing 19per cent of the region’s workforce. Health care and social assistance sector was the second largest employing sector with 7100people followed by manufacturing with6700people. Other important employment sectors in the region were retail trade (4300people), education and training (3800people) and, accommodation and food services (3100people).

Figure 1 Employment profile, Barossa-Yorke-Mid North region, November 2014

Note: Annual average of the preceding 4quarters.
Source: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia

2Agriculture sector

Value of agricultural production

In 2012–13, the gross value of agricultural production in the Barossa-Yorke-Mid North region was $1.5billion, which was 28per cent of the total gross value of agricultural production in South Australia ($5.6billion). This is the most recent year for which ABS data are available.

The agricultural sector in the Barossa-Yorke-Mid North region is dominated by cereal crops. The most important commodity in the Barossa-Yorke-Mid North region based on the gross value of agricultural production was wheat (Figure 2). In 2012–13, wheat contributed 31per cent ($475million) to the value of agricultural production in the region. Barley accounted for 18per cent ($273million);poultry 8per cent ($131million); pigs 7per cent ($131million), sheep and lamb, and sheep6per cent each ($87million).

In 2012–13, the Barossa-Yorke-Mid North region accounted for around 66per cent of the total value of South Australian tomato production and egg production, 60per cent of the total value of hay and 41per cent of the total value of barley.

Figure 2 Value of agricultural production, Barossa-Yorke-Mid North region, South Australia, 2012–13

Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia

Number and type of farms

In 2011–12there were 3753farms in the Barossa - Yorke - Mid North region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 27per cent of all farm businesses in South Australia.

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

Industry Classification / Barossa - Yorke - Mid North region / South Australia
no. / % / no. / %
Grain growing / 1201 / 33 / 2136 / 16
Mixed grains and livestock / 986 / 27 / 2253 / 17
Fruit and nuts / 430 / 12 / 2332 / 18
Sheep / 371 / 10 / 1626 / 12
Other livestock / 89 / 2 / 316 / 2
Beef Cattle / 80 / 2 / 1336 / 10
Other / 512 / 14 / 3025 / 23
Total Agriculture / 3670 / 100 / 13025 / 100

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

Farms are classified in Table 1 according to the activities that generate most of their value of production. Grain growing farms (1347farms) were the most common, accounting for 36per cent of all farms in the Barossa - Yorke - Mid North region, and 51per cent of all grain growing farms in South Australia.

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 25per cent of farms in the Barossa - Yorke - Mid North region 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, 31per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 79per cent of the total value of agricultural operations in the region.

Figure 3 Distribution of farms by estimated value of agricultural operations, Barossa - Yorke - Mid North, South Australia, 2012–13

Source: Australian Bureau of Statistics

Farm financial performance—South Australia

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 South Australia.

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—South Australia

Incomes for South Australian broadacre farms were relatively high between 2009–10 and 2013–14. In 2014–15, farm cash income for South Australian broadacre farms is projected to decrease slightly, to average $163000afarm in (Table 3 and Figure 4). This would still be around 32percent above the 10-year average to 2013–14.

Reduced winter crop production resulting from lower yields, together with lower wheat prices, is projected to result in average farm cash income decreasing in all South Australian regions except the Northern Pastoral region. Reduced expenditure on fuel, interest and fodder in the Northern Pastoral region is projected to result in a slight increase in projected farm cash income for farms in the region (Table 3).

Crop receipts in 2014–15are projected to decline by around 8percent, withpool payments for grain delivered in 2013–14partly cushioning a decline in 2014–15grain receipts. Wool receipts are also expected to be lower. Average total cash costs are projected to remain relatively unchanged, with reduced expenditure on fuel, interest payments and crop handling and marketing offsetting increases in other categories ofexpenditure.

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 3 Financial performance, South Australia broadacre industries, 2012–13to 2014–15, average per farm

Performance indicator / units / 2012–13 / 2013–14p / RSE / 2014–15y
Total cash receipts / $ / 479870 / 512900 / (8) / 508000
Total cash costs / $ / 312910 / 344500 / (8) / 345000
Farm cash income / $ / 166960 / 168400 / (11) / 163000
Farms with negative farm cash income / % / 12 / 15 / (28) / 17
Farm business profit / $ / 54440 / 33400 / (47) / 33000
Profit at full equity excluding capital appreciation / $ / 96800 / 76700 / (23) / 76000
Farm capital at 30 June a / $ / 3 873 800 / 4 107 400 / (6) / na
Farm debt at 30 June b / $ / 464870 / 470900 / (14) / 484000
Equity ratio bd / % / 88 / 88 / (1) / na
Rate of return excluding capital appreciatione / % / 2.6 / 1.9 / (19) / 1.8
Off-farm income of owner manager and spouse b / $ / 27130 / 26300 / (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 South Australia broadacre farms, by region, 2013–14to 2014–15, average per farm

Region / units / 2013–14p / RSE / 2014–15y
411: SA North Pastoral / $ / 186200 / (30) / 197000
421: SA Eyre Peninsula / $ / 254200 / (18) / 250000
422: SA Murray Lands and Yorke Peninsula / $ / 164600 / (22) / 164000
431: SA South East / $ / 128700 / (17) / 116000

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—South Australia

In 2013–14, average total cash receipts for South Australian grains industry farms increased slightly compared with 2012–13. A 30percent increase in winter crop production resulted in higher crop receipts. On mixed enterprise farms, increased crop receipts combined with an increase in sheep, lamb and wool receipts. Total cash costs also increased in 2013–14due to higher expenditure on crop chemicals, fertiliser, repairs and maintenance and livestock purchases on mixed enterprise farms. Average farm cash income for grains industry farms in South Australia decreased slightly to $230000a farm in 2013–14 (Figure 5).

In 2014–15, winter crop production in South Australia is estimated to have decreased by 12per cent, reflecting a decline from the high yields in 2013–14. Reduced grain production, together with lower wheat prices are projected to result in a decline in crop receipts. However, receipts from beef are projected to increase on mixed enterprise farms due to higher beef prices.

Total cash costs for grains industry farms are projected to rise slightly in 2014–15, mainly due to an expected increase in expenditure on crop chemicals and repairs and maintenance compared with 2013–14.

Average farm cash income for grains industry farms in South Australia is projected to decrease slightly to around $206000a farm in 2014–15, still around a third above the average for the previous 10years of $155000 (Figure 5).

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 sheep industry farms—South Australia

Farm cash incomes were historically high in real terms for South Australian sheep industry farms in 2010–11and 2011–12 (Figure 6). However, in 2012–13, a reduction in average prices received for lambs, adult sheep and wool resulted in farm cash income for South Australian sheep farms falling back in line with historical trends.

In 2013–14higher prices for adult sheep, lamb and beef combined with increased turn-off resulted in higher farm cash receipts.Despite an increase in average cash costs resulting mainly from increased expenditure on sheep purchases, beef cattle purchases and fertiliser, average farm cash income for sheep industry farms increased to an average of $103700a farm.

In 2014–15, higher adult sheep and lamb prices are projected to result in an increase in farm cash receipts. Average farm cash income for sheep industry farms is projected to increase to average $109000a farm, around 19per cent above the industry average of $92000a farm for the ten-years to 2013–14.

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

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

Performance of dairy industry farms— South Australia

In 2013–14, higher farm gate milk prices resulted in average farm cash income for South Australian dairy farms increasing from $81250in 2012–13to $163000in 2013–14 (Table 4 and Figure 7). Nationally, average farm cash income increased from $44130in 2012–13to $163900in 2013–14.

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