Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales, 2015 ABARES
Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales, 2015
Research by the Australian Bureau of Agricultural
and Resource Economics and Sciences
About my region 15.12
April 2015
Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales, 2015 ABARES
© Commonwealth of Australia 2015
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Cataloguing data
ABARES 2015, Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales, 2015, About my region 15.12, Canberra, April. CC BY 3.0.
ISBN 978-1-74323-119-7
ABARES project 43009
Internet
Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales 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, Peter Martin, Haydn Valle, Timothy Connolly, Lucy Randall, Kasia Mazur 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—New South Wales 6
3 Fisheries sector 14
4 Forestry sector 16
References 17
Tables
Table 1 Number of farms, by industry classification, 2012–13 5
Table 2 Financial performance, New South Wales broadacre industries, 2012–13to 2014–15, average per farm 7
Table 3 Farm cash income of New South Wales broadacre farms, by region, 2013–14to 2014–15, average per farm 8
Table 4 Financial performance, New South Wales dairy industry, 2012–13to 2014–15, average per farm 12
Table 5 Physical and financial performance, vegetable growing farm businesses, New South Wales, 2012–13and 2013–14 12
Figures
Figure 1 Employment profile, Richmond – Tweed region, November 2014 3
Figure 2 Value of agricultural production, Richmond – Tweed region, New South Wales, 2012–13 4
Figure 3 Distribution of farms by estimated value of agricultural operations, Richmond – Tweed region, New South Wales, 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 9
Figure 6 Real farm cash income, sheep industry, average per farm 10
Figure 7 Real farm cash income, beef industry, average per farm 10
Figure 8 Real farm cash income, dairy industry, average per farm 11
Figure 9 Real farm cash income, vegetable growing farm businesses, New South Wales, 2005–06to 2013–14 13
Figure 10 Area of native forest, by tenure 16
Maps
Map 1 Broad agricultural land use of the Richmond – Tweed region of New South Wales 1
Map 2 Agricultural industries of the Richmond – Tweed region of New South Wales 2
Map 3 ABARES Australian broadacre zones and regions 8
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Agriculture, Fisheries and Forestry in the Richmond-Tweed region of New South Wales, 2015 ABARES
1 Regional overview
The Richmond – Tweed region of New South Wales is located in the far north east corner of the state, including the coastal and ranges areas. The region includes the major regional towns of Lismore, Casino, Ballina and Murwillumbah (Map 1) and comprises the six local government areas of Ballina, Byron, Kyogle, Lismore, Richmond Valley and Tweed. The region covers a total area of around 10300square kilometres or 1per cent of New South Wales and is home to approximately 227600people (ABS 2011).
Agricultural land in the Richmond – Tweed region occupies 5950square kilometres, or 58per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 2800square kilometres, or 27per cent of the region. The most common land use by area is grazing modified pastures, which occupies 3850square kilometres or 37per cent of the Richmond – Tweed region.
Map 1 Broad agricultural land use of the Richmond – Tweed region of New South Wales
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Map 2 Agricultural industries of the Richmond – Tweed region of New South Wales
Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)
Employment
Australia Bureau of Statistics (ABS) data from the 2014 Labour Force Surveyindicate that around 93100people were employed in the Richmond – Tweed region. The region accounts for 3per cent of total employment in New South Wales and 4per cent of all people employed in the New South Wales agriculture, forestry and fishing sector.
Retail trade was the largest employment sector in the region, with 15800people (Figure 1), followed by health care and social assistance with 14200people. Other important employment sectors in the region were accommodation and food services (9800people), education and training (7500people), construction (7400people), and manufacturing (6500people). The agriculture, forestry and fishing sector employed 3400people, representing 4per cent of the region’s workforce.
Figure 1 Employment profile, Richmond – Tweed 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 Richmond – Tweed region was $426million, which was 4per cent of the total gross value of agricultural production in New South Wales ($12.1billion). This is the most recent year for which ABS data are available.
The Richmond – Tweed region has a diverse agricultural sector. The most important commodity in the Richmond – Tweed region based on the gross value of agricultural production was fruit and nuts (Figure 2). In 2012–13, fruit and nuts contributed 30per cent ($127million) to the value of agricultural production in the region. The major crops were macadamia nuts ($44million) and bananas ($15million). Cattle and calves accounted for 19per cent ($79million) of the total value, poultry accounted for 15per cent ($64million), vegetables 10per cent ($41million) and nurseries, flowers and turf 8per cent ($36million).
In 2012–13, the Richmond – Tweed region accounted for 100per cent of the value of the state’s production of pineapples, 91per cent of macadamia nuts and 46per cent of the total value of bananas. The region also accounted for 70per cent of the value of the state’s sugar cane production and 45per cent of the state’s avocado production.
Figure 2 Value of agricultural production, Richmond – Tweed region, New South Wales, 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 3420farms in the Richmond – Tweed region with an estimated value of agricultural operations of more than $5000 (Table 1). The region contains 8per cent of all farm businesses in New South Wales.
Table 1 Number of farms, by industry classification, 2012–13
Industry Classification / Richmond - Tweed region / New South Wales /no. / % / no. / % /
Beef Cattle / 1519 / 44 / 13626 / 32
Fruit and nuts / 621 / 18 / 2577 / 6
Sugar cane / 254 / 7 / 391 / 1
Dairy / 83 / 2 / 1115 / 3
Vegetable / 76 / 2 / 1062 / 3
Other livestock / 73 / 2 / 1631 / 4
Other Crop growing / 45 / 1 / 353 / 1
Grain growing / 40 / 1 / 3654 / 9
Nurseries, Cut Flowers and Turf / 38 / 1 / 527 / 1
Other / 670 / 20 / 17145 / 41
Total Agriculture / 3420 / 100 / 42082 / 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 farms (1519farms) were the most common, accounting for 44per cent of all farms in the Richmond – Tweed region, and 11per cent of all beef cattle farms in New South Wales.
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 60per cent of farms in the Richmond – Tweed region had an EVAO of less than $50000 (Figure 3). These farms accounted for only 11per cent of the total value of agricultural operations in 2012–13. In comparison, 5per cent of farms in the region had an EVAO of more than $350000and accounted for an estimated 45per 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, Richmond – Tweed region, New South Wales, 2012–13
Source: Australian Bureau of Statistics
Farm financial performance—New South Wales
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 New South Wales.
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—New South Wales
Drought reduced crop production in north western New South Wales and despite increased turnoff of beef cattle and sheep farm cash incomes declined. However, in southern New South Wales grain, oilseed and pulse production increased and with higher sheep and lamb prices resulted in increased farm receipts and much higher farm cash incomes. Overall, the increase in farm cash income in southern regions more than outweighed the reduction in the north to result in the average farm cash income for New South Wales broadacre farms increasing to $106000a farm, in 2013–14.
In 2014–15, further increases in average farm cash income are expected for mixed livestock–crops and sheep farms in southern regions of New South Wales, the Riverina, the Central West and Coastal New South Wales as a result of higher beef, sheep and lamb prices (Table 3). However, in the North West Slopes and Plains and Far Western New South Wales, farm cash incomes are projected to decline as continued dry conditions further reduced crop production. Incomes for beef and sheep farms are projected to decrease as the number of sheep, lambs and beef cattle sold declines. The proportion of farms recording negative farm cash incomes is projected to exceed 30percent in the north-west of the state.
With increased incomes in the southern and central regions and reduced incomes in the north, average farm cash income of New South Wales broadacre farms is projected to decline only slightly in 2014–15compared with 2013–14. Onaverage, farm cash income for broadacre farms in New South Wales is projected to average $106000afarm in 2014–15 (Table 2 and Figure 4), still around 44percent above the 10-year average to2013–14.
Figure 4 Real farm cash income, broadacre industries, average per farm