Agriculture and Forestry in the Ballarat region of Victoria, 2015 ABARES
Agriculture and Forestry in the Ballarat region of Victoria, 2015
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 15.16
March 2015
Agriculture and Forestry in the Ballarat region of Victoria, 2015 ABARES
© Commonwealth of Australia 2015
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Cataloguing data
ABARES 2015, Agriculture, Fisheries and Forestry in the Ballarat region of Victoria, 2015, About my region 15.16, Canberra, March. CC BY 3.0.
ISBN 978-1-74323-074-9
ABARES project 43009
Internet
Agriculture, Fisheries and Forestry in the Ballarat region of Victoria 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 regional profile was updated by Therese Thompson, Haydn Valle, Timothy Connolly, Lucy Randall and Sharan Singh.
Contents
1 Regional overview 1
Employment 2
2 Agriculture sector 4
Value of agricultural production 4
Number and type of farms 4
Farm financial performance—Victoria 6
3 Forestry sector 13
References 14
Tables
Table 1 Number of farms, by industry classification, 2012–13 5
Table 2 Financial performance, Victoria broadacre industries, 2011–12to 2013–14, average per farm 7
Table 3 Farm cash income of Victoria broadacre farms, by region, 2012–13to 2013–14, average per farm 7
Table 4 Financial performance, Victoria dairy industry, 2011–12to 2013–14, average per farm 11
Table 5 Physical and financial performance, vegetable growing farm businesses, Victoria, 2012–13and 2013–14 12
Figures
Figure 1 Employment profile, Ballarat region, November 2014 3
Figure 2 Value of agricultural production, Ballarat region, Victoria, 2012–13 4
Figure 3 Distribution of farms by estimated value of agricultural operations, Ballarat region, Victoria, 2012–13 5
Figure 4 Real farm cash income, broadacre industries, average per farm 7
Figure 5 Real farm cash income, grains industry, average per farm 8
Figure 6 Real farm cash income, sheep industry, average per farm 9
Figure 7 Real farm cash income, beef industry, average per farm 9
Figure 8 Real farm cash income, dairy industry, average per farm 10
Figure 9 Real farm cash income, vegetable growing farm businesses, Victoria, 2005–06to 2013–14 12
Figure 10 Area of native forest, by tenure 13
Maps
Map 1 Broad agricultural land use of the Ballarat region of Victoria 1
Map 2 Agricultural industries of the Ballarat region of Victoria 2
ii
Agriculture and Forestry in the Ballarat region of Victoria, 2015 ABARES
1 Regional overview
The Ballarat region is located in the south west of Victoria (Map 1). The region comprises the four local government areas of Ballarat, Central Goldfields, Hepburn and Pyrenees, and parts of the Ararat, Golden Plains, Loddon, Moorabool, and Mount Alexander local government areas. The region incorporates the major regional towns of Avoca, Ballan, Ballarat, Beaufort, Clunes, Creswick, Daylesford, Dunolly, and Maryborough. The region covers a total area of around 10300square kilometres or 4.5per cent of Victoria’s total area and is home to approximately 146200people (ABS 2011).
Agricultural land in the Ballarat region occupies 6970square kilometres, or 68per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 1260square kilometres, or 12per cent of the region. The most common land use by area is grazing modified pastures, which occupies 4900square kilometres or 48per cent of the Ballarat region.
Map 1 Broad agricultural land use of the Ballarat region of Victoria
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Map 2 Agricultural industries of the Ballarat region of Victoria
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 71600people were employed in the Ballarat region. The Ballarat region accounts for 2per cent of total employment in Victoria and 13per cent of all people employed in the Victorian agriculture, forestry and fishing sector.
Agriculture, forestry and fishing was the largest employment sector with 12100people, representing 16per cent of the region’s workforce (Figure 1). Health care and social assistance sector employed 9600people followed by retail trade with 7500people. Other important employment sectors in the region were education and training (6900people), construction (6800people) and manufacturing (6300people).
Figure 1 Employment profile, Ballarat region, November 2014
Note: Annual average of the preceding 4quarters.
Source: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia
2 Agriculture sector
Value of agricultural production
In 2012–13, the gross value of agricultural production (GVAP) in the Ballarat region was $473million, which was 4per cent of the total gross value of agricultural production in Victoria ($11.6billion). This is the most recent year for which ABS data are available.
The Ballarat region has a diverse and important agricultural sector. The most important commodity in the Ballarat region based on the gross value of agricultural production was sheep and lambs (Figure 2). In 2012–13, sheep and lambs contributed 18per cent ($84million) to the value of agricultural production in the region. Vegetables accounted for 15per cent ($72million) with the major crops being potatoes ($44million) and mushrooms ($10million). Wheat accounted for 15per cent ($69million) of the total value of agricultural production, canola accounted for 12per cent ($54million), wool 11per cent ($54million), cattle and calves 7per cent ($31million) and hay 6per cent ($29million).
In 2012–13, the Ballarat region accounted for 30per cent of the state’s total value of production of potatoes.
Figure 2 Value of agricultural production, Ballarat region, Victoria, 2012–13
Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia
Number and type of farms
ABS data indicate that in 2012–13there were 1403farms in the Ballarat region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 5per cent of all farm businesses in Victoria.
Table 1 Number of farms, by industry classification, 2012–13
Industry Classification / Ballarat region / Victoria /no. / % / no. / %
Sheep / 460 / 33 / 3774 / 12
Beef Cattle / 217 / 15 / 8219 / 27
Mixed grains and livestock / 170 / 12 / 2224 / 7
Mixed livestock / 146 / 10 / 1395 / 5
Grain growing / 103 / 7 / 2388 / 8
Vegetable / 69 / 5 / 691 / 2
Fruit and nuts / 54 / 4 / 2275 / 7
Other livestock / 39 / 3 / 918 / 3
Other Crop growing / 14 / 1 / 358 / 1
Dairy / 12 / 1 / 4733 / 15
Poultry / 11 / 1 / 294 / 1
Other / 107 / 8 / 3615 / 12
Total Agriculture / 1403 / 100 / 30884 / 100
Note: Where the estimated value of agricultural operations is more 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. Sheep farms (460farms) were the most common, accounting for 33per cent of all farms in the Ballarat region, and 12per cent of all sheep farms in Victoria.
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 36per cent of farms in the Ballarat region had an EVAO of less than $50000 (Figure 3). These farms accounted for only 3per cent of the total value of agricultural operations in 2012–13. In comparison, 23per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 73per cent of the total value of agricultural operations in the region.
Figure 3 Distribution of farms by estimated value of agricultural operations, Ballarat region, Victoria, 2012–13
Source: Australian Bureau of Statistics
Farm financial performance—Victoria
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 agriculture 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 Victoria.
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—Victoria
Farm cash income for Victorian broadacre farms declined from an estimated average of $92310per farm in 2011–12to an average of $85600per farm in 2012–13, mainly as a result of lower livestock prices and reduced grain production (Table 2).
In 2013–14, receipts from sheep, lambs and wool are projected to increase as a result of higher prices. However, despite increased turnoff of beef cattle, lower saleyard prices are projected to result in little change in beef cattle receipts. Receipts from cropping are projected to remain similar to 2012-13, with only a small increase in winter crop production and lower prices for canola, barley and some grain legumes. On average, farm cash income for broadacre farms in Victoria is projected to decline slightly to $82000per farm in 2013–14, around 12per cent above the ten-year average to 2012–13of $73000per farm.
Overall, farm cash incomes are projected to increase in the Mallee region, although farm cash incomes vary greatly within this region. Farm cash income is projected to decline slightly in the Wimmera mainly as a result of lower prices for some grains and a larger decline is projected in the Central North due to the additional impact of lower beef cattle prices. In southern and eastern Victoria, increased cattle turn-off together with higher sheep, lamb and wool prices are projected to result in a small increase in average farm cash income (Table 3).
Figure 4 Real farm cash income, broadacre industries, average per farm
Note: p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Table 2 Financial performance, Victoria broadacre industries, 2011–12to 2013–14, average per farm
Performance indicator / units / 2011–12 / 2012–13p / RSE / 2013–14yTotal cash receipts / $ / 303990 / 279700 / (9) / 278000
Total cash costs / $ / 211680 / 194200 / (10) / 196000
Farm cash income / $ / 92310 / 85600 / (11) / 82000
Farms with negative farm cash income / % / 20 / 25 / (18) / 28
Farm business profit / $ / 8530 / 12400 / (68) / –2000
Profit at full equity excluding capital appreciation / $ / 36060 / 37200 / (27) / 22000
Farm capital at 30 June a / $ / 2902350 / 2820700 / (10) / na
Farm debt at 30 June b / $ / 278170 / 252400 / (15) / 255000
Equity ratio b / % / 90 / 91 / (1) / na
Rate of return excluding capital appreciation c / % / 1.3 / 1.3 / (22) / 0.8
Off-farm income of owner manager and spouse b / $ / 37960 / 32200 / (14) / na
Note: a Excludes leased plant and equipment. b Average per responding farm. c Rate of return to farm capital at 1 July. pABARES preliminary estimates. yABARES provisional estimates. na Not available. RSE Relative standard errors, expressed as a percentage of the estimate provided.
Source: ABARES Australian Agricultural and Grazing Industries Survey