Agriculture and Forestry in the Darling Downs-Maranoa region of Queensland, 2014 ABARES
Agriculture and Forestry in the Darling Downs - Maranoa region of Queensland, 2014
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 14.26
December 2014
Agriculture and Forestry in the Darling Downs-Maranoa region of Queensland, 2014 ABARES
© Commonwealth of Australia 2014
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Cataloguing data
ABARES 2014, Agriculture, Fisheries and Forestry in the Darling Downs - Maranoa region of Queensland 2014, About my region 14.26, Canberra, December. CC BY 3.0.
ISSNTBA
ISBN 978-1-74323-087-9
ABARES project 43009
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Agriculture, Fisheries and Forestry in the Darling Downs - Maranoa region of Queensland 2014 is available at agriculture.gov.au/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 and Sharan Singh.
Contents
1 Regional overview 1
Employment 1
2 Agriculture sector 3
Value of agricultural production 3
Number and type of farms 3
Farm financial performance—Queensland 5
3 Forestry sector 12
References 13
Tables
Table 1 Number of farms, by industry classification, 2012–13 4
Table 2 Financial performance, Queensland broadacre industries, 2011–12 to 2013–14, average per farm 6
Table 3 Farm cash income of Queensland broadacre farms, by region, 2012–13 to 2013–14, average per farm 7
Table 4 Financial performance, Queensland dairy industry, 2011–12 to 2013–14, average per farm 10
Table 5 Physical and financial performance, vegetable growing farm businesses, Queensland, 2012–13and 2013–14 11
Figures
Figure 1 Employment profile, Darling Downs region – Maranoa region, August 2014 2
Figure 2 Value of agricultural production, Darling Downs – Maranoa region, Queensland, 2012–13 3
Figure 3 Distribution of farms by estimated value of agricultural operations, Darling Downs – Maranoa region, Queensland, 2012–13 4
Figure4 Real farm cash income, broadacre industries, average per farm 6
Figure 5 Real farm cash income, grains industry, average per farm 8
Figure 6 Real farm cash income, beef industry, average per farm 9
Figure 7 Real farm cash income, dairy industry, average per farm 10
Figure 8 Real farm cash income, vegetable growing farm businesses, Queensland, 2005–06to 2013–14 11
Figure 8 Area of native forest, by tenure 12
Maps
Map 1 Darling Downs – Maranoa region of Queensland 1
Map 2 Australian broadacre zones and regions 7
ii
Agriculture and Forestry in the Darling Downs-Maranoa region of Queensland, 2014 ABARES
1 Regional overview
The Darling Downs – Maranoa region of Queensland is located in the south-east of the state and extends to the NSW border (Map 1). The region comprises the six local government areas of Balonne, Goondiwindi, Maranoa, Southern Downs, Toowoomba, and Western Downs, and the major regional towns of Dalby, Warwick, Goondiwindi, St George, Roma and Mitchell. The region covers a total area of around 166400square kilometres or 9per cent of Queensland’s total area and is home to approximately 122300people (ABS 2011).
Agricultural land in the Darling Downs – Maranoa region occupies 138 700 square kilometres, or 83 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 14 930 square kilometres, or 9 per cent of the region. The most common land use by area is grazing modified pastures, which occupies 93380 square kilometres or 56 per cent of the Darling Downs – Maranoa region.
Map 1 Darling Downs – Maranoa region of Queensland
Employment
Australian Bureau of Statistics (ABS) data from 2014 indicate that around 67200people were employed in the Darling Downs – Maranoa region. The Darling Downs – Maranoa region accounts for 3per cent of total employment in Queensland and 12per cent of allpeople employed in the Queensland agriculture, forestry and fishing sector.
Agriculture, forestry and fishing was the largest employment sector with 8300people (Figure 1), representing 20per cent of the region’s workforce. Retail trade was the second largest employing sector (7300people) followed by health care and social assistance sector (6800people). Other important employment sectors in the region were public administration and safety (6400people), construction (6300people), and transport, postal and warehousing (5900people).
Figure 1 Employment profile, Darling Downs region – Maranoa region, August 2014
Note: Annual average of the preceding 4 quarters.
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 Darling Downs – Maranoa region was $2.9billion, which was 28per cent of the total gross value of agricultural production in Queensland ($10billion). This is the most recent year for which ABS data are available.
The Darling Downs – Maranoa region has a diverse and important agricultural sector. The most important commodity in the Darling Downs – Maranoa region based on the gross value of agricultural production was cattle and calves (Figure 2). In 2012–13, cattle and calves contributed 22per cent ($638million) to the value of agricultural production in the region. Cotton accounted for 19per cent ($556million), wheat 14per cent ($400million), sorghum 10per cent ($276million), eggs and pigs each account for 5per cent ($152million and $132million, respectively). Poultry contributed a further 4per cent ($102 million) to the region’s value.
In 2012–13, the Darling Downs – Maranoa region accounted for around 100per cent of the total value of Queensland apple, pear and cherry production, 94per cent of the total value of canola and 91per cent of the total value of barley and oats.
Figure 2 Value of agricultural production, Darling Downs – Maranoa region, Queensland, 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 2011–12 there were 6666 farms in the Darling Downs – Maranoa region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 25per cent of all farm businesses in Queensland.
Table 1 Number of farms, by industry classification, 2012–13
Industry Classification / Darling Downs - Maranoa region / Queensland // no. / % / no. / % /
Beef Cattle / 3 071 / 46 / 12 741 / 48
Grain growing / 942 / 14 / 1 315 / 5
Mixed grains and livestock / 723 / 11 / 1 060 / 4
Cotton / 220 / 3 / 270 / 1
Dairy / 220 / 3 / 634 / 2
Other livestock / 193 / 3 / 811 / 3
Other Crop growing / 171 / 3 / 485 / 2
Sheep / 155 / 2 / 215 / 1
Vegetable / 134 / 2 / 932 / 4
Mixed livestock / 128 / 2 / 351 / 1
Fruit and nuts / 120 / 2 / 1 630 / 6
Other / 590 / 9 / 6 098 / 23
Total Agriculture / 6666 / 100 / 26541 / 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. Beef cattle (3071 farms) were the most common, accounting for 46per cent of all farms in the Darling Downs – Maranoa region, and 24per cent of all beef cattle farms in Queensland.
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 40per cent of farms in the Darling Downs – Maranoa region had an EVAO of less than $50 000 (Figure 3). These farms accounted for only 3per cent of the total value of agricultural operations in 2012–13. In comparison, 22per cent of farms in the region had an EVAO of more than $350000 and accounted for an estimated 79per cent of the total value of agricultural operations in the region in 2012–13.
Figure 3 Distribution of farms by estimated value of agricultural operations, Darling Downs – Maranoa region, 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
Farm cash income for Queensland broadacre farms declined from an estimated average of $91210 per farm in 2011–12 to an average of $89700 per farm in 2012–13 (Table 2, Figure4). The decline in average broadacre farm cash income was mainly a consequence of the onset of dry seasonal conditions resulting in reduced crop production, increased turn-off of beef cattle and high expenditure on fodder purchases. Total receipts from sale of beef cattle declined as a result of lower cattle prices, sheep and wool receipts were also lower while crop receipts increased due to large increases in grain prices, relative to prices 2011–12.
Figure4 Real farm cash income, broadacre industries, average per farm
Note: p Preliminary estimate. y Provisional estimate.
Source: ABARES Australian Agricultural and Grazing Industries Survey
Receipts from beef cattle typically account for around 70 per cent of average total cash receipts for Queensland broadacre farms. In 2013–14, receipts from beef cattle are projected to decline slightly due to lower average prices received for cattle sold and despite a further increase in turnoff in most regions resulting from the continuation of drought conditions. In addition, production of both winter and summer crops declined in 2013–14 reducing crop receipts for Queensland broadacre farms by around 20 per cent on average.
Average total cash costs are projected to increase by around 6 per cent in 2013–14, mainly as a result of a projected increase of around 90 per cent in expenditure on fodder and despite a further decline in beef cattle purchase expenditure and lower expenditure on crop production expenses as the area planted to crops was reduced.