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iABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Australian vegetable growing farmsAn economic survey, 2012–13 and 2013–14Haydn Valle

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

RESEARCH REPORT 14.15

© Commonwealth of Australia 2014

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Cataloguing data This publication (and any material sourced from it) should be attributed as Valle, H 2014, Australian vegetable growing farms: an economic survey, 2012–13 and 2013–14, ABARES research report prepared for Horticulture Australia Limited, Canberra, November. CC BY 3.0.

ISSN 1447-8358 ISBN 978-1-74323–210-1 ABARES project 43189

Internet Australian vegetable growing farms: an economic survey, 2012–13 and 2013–14 is available at: agriculture.gov.au/abares/publications.

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

Postal address GPO Box 858 Canberra ACT 2601 Switchboard +61 2 6272 3933 Facsimile +61 2 6272 2001 Email [email protected] Web agriculture.gov.au/abares

Inquiries regarding the licence and any use of this document should be sent to [email protected].

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 heavily on the voluntary cooperation of farmers participating in the annual Australian vegetable growing farms survey to provide the data used in the preparation of this report. Without this assistance the survey would not be possible. Information presented in this report was mainly collected from farmers via on-farm interviews conducted by members of ABARES farm surveys staff.

The author would also like to thank ABARES colleagues Dale Ashton and Peter Martin for their input and ongoing feedback on this report. This research was funded by Horticulture Australia Limited.

iiiABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

The Australian vegetable production sector is an important source of food, supplying most of the fresh vegetables consumed in Australia and providing inputs for a large proportion of the processed vegetable products consumed in Australia and exported overseas. The gross value of vegetable industry production is estimated to have been around $3.7 billion in 2013–14, contributing around 7 per cent to Australia’s gross value of agricultural production.

To monitor the performance of vegetable growing farms, Horticulture Australia Limited (HAL) commissioned ABARES to conduct annual surveys of Australian vegetable growers. Commencing in 2007, these surveys provide comprehensive information on the physical and financial characteristics of vegetable growing farms in each state. The results are used to inform industry and government decision-makers about key trends and drivers of vegetable industry farm performance. The surveys have been conducted in cooperation with the vegetable industry and are supported by funds collected under the National Vegetable Levy on behalf of HAL.

This report contains results from the latest ABARES survey of vegetable growing farms conducted from March to June 2014 to collect comprehensive data on the physical, financial and socioeconomic characteristics of vegetable farms in 2012–13 and 2013–14. This is the eighth Australian vegetable survey conducted by ABARES on behalf of HAL.

The report also draws on data from previous ABARES surveys of vegetable growing farms conducted on behalf of HAL. The information contained in this report will assist in decision-making on research and development initiatives and policies affecting the future direction and growth of the Australian vegetable growing industry. The survey results are also used to benchmark the industry’s performance and provide information to target efforts to improve productivity and profitability. HAL has commissioned surveys and analysis of vegetable growers to cover the period 2013–14 to 2015–16. The Department of Agriculture contributes approximately 33 per cent of the costs of the Australian vegetable survey.

Foreword

Foreword

2015

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The theme of Outlook 2015 is The business of agriculture: producing for profit.

Be part of the ABARES Outlook 2015 conference with other leading public and private sector decision-makers in the agriculture, forestry, fisheries and food sectors. Examine the major issues for Australia’s primary industries, understand the short to long-term outlook for a range of commodities and explore industry issues.

Keynote national and international speakers will lead conversations on their areas of expertise. This is a rare opportunity to hear 70 speakers and chairs in conversation with more than 700 delegates across 14 sessions, all focused on meeting the challenges for Australia’s primary industries.

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vABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Contents

Summary vii

Introduction 1

Characteristics of the vegetable growing industry 4

Seasonal conditions, crop yields and vegetable prices 8

Financial performance 14

Capital, debt and investment 21

Farms growing vegetables under the National Vegetable Levy 27

Appendixes

A Survey methods and definitions 31

B Financial performance by state 36

C Selected estimates by commodity 42

References 48

Figures

1 Gross value of production, vegetables for human consumption, 1981–82 to 2013–14 1

2 Distribution of farm cash income, Australian vegetable growing farms, 2005–06 to 2013–14 4

3 Population of Australian vegetable growing farm businesses, by area planted to vegetables, 2005–06 to 2012–13 5

4 Total cash receipts, Australian vegetable growing farm businesses, 2005–06 to 2013–14 6

5 Yields of selected vegetable commodities, Australian vegetable growing farm businesses, 2005–06 to 2013–14 9

6 Farmgate price index, vegetable commodities, Australian vegetable growing farm businesses, 2005–06 to 2013–14 10

7 Farmgate prices and total production, Australian vegetable growing farm businesses, 2005–06 to 2013–14 11

vi ABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Contents

8 Total cash receipts, total cash costs and farm cash income, Australian vegetable growing farm businesses, 2005–06 to 2013–14 14

9 Farm cash income, vegetable growing farm businesses, by state, 2005–06 to 2013–14 20

10 Proportion of farms acquiring land, Australian vegetable growing farm businesses, 2005–06 to 2012–13 22

11 Land values, Australian vegetable growing farm businesses, 2005–06 to 2012–13 22

12 Composition of non-land net capital additions, Australian vegetable growing farm businesses, 2007–08 to 2012–13 23

13 Composition of farm business debt, Australian vegetable growing farm businesses, 2007–08 to 2012–13 24

14 Ratios of interest paid to receipts and equity, Australian vegetable growing farm businesses, 2005–06 to 2012–13 25

15 Debt servicing and borrowing capacity, Australian vegetable growing farm businesses, 2005–06 to 2012–13 26

Tables

1 Population of vegetable farms, Australia, 2011–12 and 2012–13 3

2 Distribution of Australian vegetable growing farm businesses, by area planted to vegetables, 2012–13 3

3 Distribution of Australian vegetable growing farm businesses, by selected farm characteristics, 2010–11 to 2012–13 6

4 Distribution of production, vegetables for human consumption, Australia, 2012–13 7

5 Reported seasonal conditions, vegetable growing farm businesses, by state, 2012–13 8

6 Markets for vegetable produce, Australian vegetable growing farm businesses, 2012–13 10

7 Water sources, Australian vegetable growing farm businesses, 2010–11 to 2012–13 13

8 Financial performance, Australian vegetable growing farm businesses, 2011–12 to 2013–14 15

9 Physical and financial performance, vegetable growing farm businesses, by state, 2012–13 and 2013–14 19

10 Distribution of farm business debt, vegetable growing farm businesses, by state, 30 June 2013 25

11 Population of vegetable growing farm businesses, by area planted to vegetables, 2012–13 28

12 Financial performance, National Vegetable Levy paying farms, by state, 2012–13 and 2013–14 28

13 Financial performance, Australian National Vegetable Levy paying farms, 2011–12 to 2013–14 30

Maps

1 Australian rainfall percentiles, 2013–14 12

Boxes

1 Vegetable growing farm businesses 3

2 Rainfall and water sources of Australian vegetable growing farm businesses 12

3 Vegetables included and excluded from the National Vegetable Levy 27

viiABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Summary

The Australian vegetable growing industry is an important part of Australian agriculture, contributing around 7 per cent ($3.7 billion) to the gross value of agricultural production in 2013–14 (ABARES 2014a). The industry’s gross value of production has grown at an annual average rate of 2.5 per cent in real terms since the early 1980s. The rate of growth has slowed since 2005–06 as a result of the impacts of drought and increased competition from imports of fresh and processed vegetable products.

Vegetable growing farm businesses have responded to these challenges by adjusting the scale of their operations, changing the mix of farm enterprises (including non-vegetable enterprises), and adopting new farm management practices and technologies. At the same time, the total number of vegetable growers has declined as some have moved into alternative agricultural enterprises or ceased agricultural production.

Over the period from 2005–06 to 2013–14 average farm cash income of vegetable growers at the national level has remained relatively steady. However, the results have been mixed across the states and among growers within each state. Farm cash incomes in Victoria and Queensland trended upward from 2005–06, while results were more mixed from year to year in the other states. The main drivers of these varied results were differences in prevailing seasonal conditions and the subsequent effect on areas planted and crop yields, as well as changes in the relative mix of vegetable crops grown in each state and prices received for vegetables.

In 2013–14, the most recent survey year, average farm cash income is estimated to have declined to $156 000, 4 per cent lower than in 2012–13. Average to above average seasonal conditions helped growers to maintain the high yields of 2012–13. Overall vegetable production was also higher because the average area planted to vegetable crops increased. However, the resulting increase in vegetable cash receipts was partially offset by lower vegetable prices.

Estimated farm cash income in 2013–14 increased in New South Wales, Victoria and Western Australia, but declined elsewhere. Average farm cash income is estimated to have increased most in Victoria, where vegetable production and prices increased for the main vegetable commodities grown. Farm cash income is estimated to have decreased most in Queensland, where lower vegetable prices offset higher production, and expenditure on hired labour increased in line with an increase in the average area of vegetables planted and harvested.

viii ABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Summary

Between 2005–06 and 2012–13 estimated average farm debt increased, as did the average value of total capital as a result of higher land values, particularly for vegetable growing farms close to large metropolitan areas. Working capital debt increased the most between 2007–08 and 2012–13, overtaking debt attributable to land purchases. After initially increasing, the ratio of total interest paid to total cash receipts has stabilised at about 5 per cent, and the equity ratio has remained around 80 per cent over the eight years to 2012–13.

This report also includes results for the subset of farms that planted vegetables under the National Vegetable Levy (NVL). NVL farms followed similar trends to the population of all vegetable growing farm businesses.

1ABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Introduction

In 2013–14 the Australian vegetable growing industry is estimated to have contributed around $3.7 billion to the Australian economy (ABARES 2014a). Since the early 1980s, when the Australian Bureau of Statistics (ABS) began measuring vegetable production, the gross value of production (GVP) for vegetables has increased in real terms at an average annual rate of 2.4 per cent (Figure 1). Between 2007–08 and 2011–12 growth in vegetable production slowed but increased in 2012–13, following record yields for the main vegetables grown in Australia. ABARES estimates GVP for vegetables to have declined in 2013–14.

FIGURE 1 Gross value of production, vegetables for human consumption, 1981–82 to 2013–14

2013–14$b

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Note: The 2013–14 value is an ABARES estimate. All other years are ABS data. Gross value of production results are presented in 2013–14 dollars. Results are derived from the population of Australian farms that planted vegetables.Source: Australian Bureau of Statistics

2013–14

2009–10

2005–06

2001–02

1997–98

1993–94

1989–90

1985–86

1981–82

2 ABARESAustralian vegetable growing farms: an economic survey, 2012–13 and 2013–14

Introduction

The vegetable industry makes an important contribution to regional economies. The wide range of climates and soils in Australia enables many types of vegetables to be grown in various parts of the country. The main vegetable producing regions include parts of the Murray–Darling Basin; south-east Queensland close to Brisbane, Bunderberg north of Brisbane and Bowen in north Queensland; the Mornington Peninsula, Bacchus Marsh, the Clyde and Werribee regions close to Melbourne, and Lindenow in the far east of Victoria; south-east South Australia and Virginia close to Adelaide; northern Tasmania; and south-west Western Australia and areas close to Perth, including Gingin. In 2012–13, the latest year for which estimates from the ABS are available, Queensland, Victoria and South Australia were the three largest vegetable growing states, collectively accounting for 69 per cent of the value of vegetable production.

Since 2007 ABARES has conducted an annual survey of vegetable growing farm businesses (Box 1) to provide industry and government with information about farm-level production and the financial situation of vegetable growers in Australia. The information collected provides a unique time series that can be used by industry and government to make evidence-based decisions, and to monitor changes occurring within the industry. The past six surveys were funded by Horticulture Australia Limited with funding support from the Australian Government Department of Agriculture (approximately 33 per cent).

This report contains the results from the most recent vegetable survey conducted by ABARES from March to June 2014 to collect farm physical and financial data covering 2012–13 and 2013–14. Financial performance results shown in this report are at the whole farm level, and include income and expenditure from all activities, not just vegetables. All survey variables and ABS data are available up to and including 2012–13. For 2013–14 results are only available for key physical and financial performance measures as these were based on projections at the time of the survey, rather than actual data (see Appendix A). Data from the previous surveys are also included to show trends, where appropriate.


Introduction

Box 1 Vegetable growing farm businessesIn this report, vegetable growing farm businesses are defined as those Australian vegetable growing farms that:

• are identified by the Australian Bureau of Statistics (ABS) as a vegetable growing farm business according to their Australian New Zealand Standard Industry Classification (ANZSIC) code

• have an estimated value of agricultural operations (EVAO) greater than $40 000, and• grew vegetables intended for human consumption in 2012–13.

The purpose of the ANZSIC qualifier is to differentiate between farms that planted vegetables but derive most of their income from other agricultural activities. The threshold of $40 000 is the ABARES definition of a commercial farm business. These qualifiers help to limit the population to those farms that are mainly involved in vegetable production, and contribute the largest share to total output (Table 1). To provide average per farm results for 2013–14, the population in 2012–13 is assumed to remain constant (see Appendix A).

TABLE 1 Population of vegetable farms, Australia, 2011–12 and 2012–13

Population type Unit 2011–12 2012–13

% change since

2011–12

Number of farm businesses that planted vegetables no. 6 018 5 611 –7

Number of vegetable growing farm businesses no. 4 380 3 896 –11

Number of vegetable growing farm businesses with an EVAO

greater than $40 000 no. 3 190 2 677 –16

Source: ABS 2014, Agricultural Commodities, Australia, cat no. 7121.0, Australian Bureau of Statistics, Canberra

The ABS smooths farm-level income from vegetables over time by taking a three-year moving average of total cash receipts. This partially overcomes the issue of farm reclassification to ensure the survey population remains consistent over time. However, changes in the value of vegetables relative to other agricultural commodities can still result in farms moving in and out of the vegetable growing ANZSIC.

The sample of farms collected is further stratified by their size, measured by the total area planted to vegetables. There are relatively few vegetable growing farm businesses that planted more than 70 hectares (Table 2). However, vegetable growing farm businesses that planted more than 70 hectares of vegetables accounted for most of the total vegetable receipts (55 per cent) and area planted to vegetables (62 per cent) in Australia in 2012–13 (Table 2).

TABLE 2 Distribution of Australian vegetable growing farm businesses, by area planted to vegetables, 2012–13

Size groupEstimated

population (no.)% of total

vegetable receipts% of total

vegetables planted

<5 hectares 1 072 13 3

5–20 hectares 801 11 10

20–70 hectares 535 21 25

>70 hectares 269 55 62

All farms 2 677 100 100

Note: Preliminary estimates. Sources: Australian Bureau of Statistics; ABARES Australian vegetable growing farms survey


Characteristics of the vegetable growing industry

The diverse range of vegetable crops and production systems in the vegetable industry means that the physical and financial performance of vegetable growing farms varies widely across Australia. In 2013–14, 80 per cent of vegetable growing farm businesses had an estimated farm cash income between $388 000 and –$86 000 (Figure 2).

FIGURE 2 Distribution of farm cash income, Australian vegetable growing farms, 2005–06 to 2013–14

2013–14$’000

p Preliminary estimate. y Provisional estimate. Note: All financial results are expressed in 2013–14 dollars. The top and bottom 10 per cent have been omittedto protect confidentiality.Source: ABARES Australian vegetable growing farms survey

–100

0

100

200

300

400

500

600

2013–14y

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

2006–07

2005–06

Average



The characteristics that differentiate the production systems of vegetable growing farm businesses include farm size, enterprise mix and the use of cover and hydroponics. The ABARES survey captures all these different types of vegetable growing farms (Table 3).

The Australian vegetable growing industry comprises a relatively small number of large farms, and many smaller farms. The population of large farms is relatively stable, but the number of smaller farms can change markedly from year to year as growers move in and out of vegetable production in response to seasonal and market conditions (Figure 3). The low capital requirements for most vegetable production relative to other agricultural operations allows farms to easily enter and exit the industry. The short turnaround between planting and harvesting also allows farms to be responsive to seasonal conditions when producing vegetables.

FIGURE 3 Population of Australian vegetable growing farm businesses, by area planted to vegetables, 2005–06 to 2012–13

p Preliminary estimate. Note: Population estimates are not available for the 2013–14 projection year.Source: Australian Bureau of Statistics

no.

500

1000

1500

2000<5 hectares 5–20 hectares 20–70 hectares >70 hectares

2012

–13p

2010

–11

200

8–0

9

200

6–0

720

05–

06

200

7–0

8

200

9–10

2011

–12

2012

–13p

2010

–11

200

8–0

9

200

6–0

720

05–

06

200

7–0

8

200

9–10

2011

–12

2012

–13p

2010

–11

200

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9

200

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720

05–

06

200

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8

200

9–10

2011

–12

2012

–13p

2010

–11

200

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720

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06

200

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8

200

9–10

2011

–12

Many vegetable growing farm businesses produce multiple vegetable commodities. Over the eight years to 2012–13 an average of 56 per cent of vegetable growing businesses produced one type of vegetable crop, and an average of 44 per cent produced two or more types of crop (Table 3). Diversifying the mix of vegetable crops planted can help manage risk from variation in the market prices of different vegetables, but can also reflect other considerations, including natural resource endowments, capital requirements and the technical ability of farm managers.



TABLE 3 Distribution of Australian vegetable growing farm businesses, by selected farm characteristics, 2010–11 to 2012–13 per cent of farms

Selected farm characteristic Unit 2010–11 2011–12 2012–13p

Estimated population no. 2 739 – 3 190 – 2 677 –

Growing environment

Outdoors only % 87 (3) 84 (2) 80 (2)

Use hydroponics % 5 (36) 6 (24) 7 (28)

Use other cover (e.g. glass, shadecloth) % 8 (22) 9 (19) 13 (17)

Number of vegetables planted

One % 61 (7) 56 (9) 48 (9)

Two % 14 (17) 18 (18) 25 (18)

Three or more % 13 (21) 15 (18) 19 (22)

Area planted to vegetables

<5 hectares % 28 (18) 35 (10) 40 (10)

5–20 % 34 (12) 33 (13) 30 (13)

20–70 % 25 (17) 22 (12) 20 (13)

>70 hectares % 13 (9) 10 (11) 10 (14)

p Preliminary estimate. Note: Percentages are rounded to the nearest whole number. Figures in parentheses are standard errors expressed as a percentage of the estimate. Detailed farm characteristics are not available for the 2013–14 projection year. Source: Australian Bureau of Statistics

The distribution of vegetable production, both in terms of the total area planted and gross value of production (Table 4) is spread widely across a number of different vegetable commodities. In addition, vegetable growing farms businesses derive revenue from other agricultural activities (Figure 4).

FIGURE 4 Total cash receipts, Australian vegetable growing farm businesses, 2005–06 to 2013–14 average per farm

2013–14$’000

p Preliminary estimate. y Provisional estimate. Note: Financial results are expressed in 2013–14 dollars.Source: ABARES Australian vegetable growing farms survey

Other receiptsVegetable cash receipts

200

400

600

800

1000

2013–14y

2011–12

2009–10

2007–08

2005–06

2012–13p

2010–11

2008–09

2006–07



TABLE 4 Distribution of production, vegetables for human consumption, Australia, 2012–13

Vegetable commoditiesTotal area

plantedGross value

of production

ha % $m %

Potatoes 33 034 26 690 18

Melons (including rock, bitter and water) 7 720 6 234 6

Lettuce 7 256 6 193 5

Tomatoes 6 290 5 439 12

Beans (including french and runner) 5 940 5 163 4

Onions 5 506 4 200 5

Carrots 4 664 4 194 5

Capsicums (excluding chillies) 1 588 1 97 3

Mushrooms 158 <1 285 8

All other 53 522 43 1 275 34

Total area 125 677 100 3 770 100

Note: Population of farms that planted vegetables for human consumption. Source: Australian Bureau of Statistics

Most vegetable growing farm businesses grow vegetables exclusively outdoors (Table 3). However, an estimated 20 per cent of the population grow at least some of their vegetables in artificial environments—such as glasshouses, under shadecloths or using hydroponics. These environments often generate much higher crop yields, give farmers more control over output quality, and can ensure a more reliable supply to market than farms that plant vegetables outdoors. However, the production systems are more input-intensive, so vegetable growing farms using cover need higher returns to cover costs. Although ABARES surveys show that a range of vegetable types are grown under cover, it is mostly tomatoes and cucumbers that are grown in these environments.


Seasonal conditions, crop yields and vegetable prices

The results in this report should be viewed in the context of the seasonal conditions, vegetable yields achieved, and the market prices faced by vegetable growing farm businesses. Yields and farmgate prices account for most of the changes observed in measured farm cash income across the industry.

Seasonal conditions and vegetable yieldsSeasonal conditions reported by vegetable growing farmers were average to above average in 2012–13 (Table 5), and ABARES survey collectors noted that overall seasonal conditions were about the same in 2013–14. Although farmers faced hot and dry summers in both years, on-farm water storage levels were sufficient to maintain crop yields. In late February 2013–14 there was damaging rain in Tasmania and South Australia, which washed away some vegetable crops and delayed new plantings (Box 2).

In 2012–13 crop yields for most crop types increased, but varied across vegetable commodities (Figure 5). These higher yields were largely a result of average to above average seasonal conditions. In 2013–14 crop yields are also estimated to have increased for most main vegetables.

TABLE 5 Reported seasonal conditions, vegetable growing farm businesses, by state, 2012–13 per cent of farms

State UnitAbove

average AverageBelow

average Flooding

New South Wales % 4 (63) 71 (12) 24 (37) 1 (126)

Victoria % 5 (50) 57 (11) 38 (17) na –

Queensland % 30 (26) 25 (28) 23 (39) 23 (32)

South Australia % 1 (73) 96 (2) 2 (65) na –

Western Australia % na (14) 76 (46) 21 (46) na –

Tasmania % 18 (41) 68 (13) 14 (43) na –

Australia % 11 (20) 61 (6) 22 (16) 6 (31)

na Not available. Note: Cooperating farmers’ assessment of overall seasonal conditions, year of survey. Vegetable growers are not surveyed about their experiences of seasonal conditions in the 2013–14 projection year. Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey



Market pricesMost of the variation in farmgate prices for vegetables can be explained by changes in production, rather than changes in demand for vegetables. Vegetable production varies frequently because vegetable growers have flexibility in enterprise mix, usually in response to vegetable prices. In addition, seasonal conditions tend to affect yields and, therefore, overall quantity produced.

FIGURE 5 Yields of selected vegetable commodities, Australian vegetable growing farm businesses, 2005–06 to 2013–14

Potatoes Pumpkins

Greenbeans Tomatoes

Carrots Cauli ower

y Provisional estimate. Source: ABARES Australian vegetable growing farms survey

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

10

20

30

40

50

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

5

10

15

20

25

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

20

40

60

80

100

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

2013–14y

2011–12

2009–10

2007–08

2005–06

t/ha

2

4

6

8

10

10

20

30

40

50

60

70

80

5

10

15

20

25

30

35



The weighted index of farmgate prices received for the main vegetables produced by Australian vegetable growing farm businesses increased by 12 per cent in 2012–13 compared with 2011–12, but declined by 3 per cent in 2013–14 (Figure 6).

FIGURE 6 Farmgate price index, vegetable commodities, Australian vegetable growing farm businesses, 2005–06 to 2013–14

index2005–06

= 100

p Preliminary estimate. y Provisional estimate.Source: ABARES Australian vegetable growing farms survey

20

40

60

80

100

120

140

160

2013–14y

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

2006–07

2005–06

Vegetables, particularly fresh vegetables, are predominantly sold domestically (Table 6). Changes in vegetable prices year to year tend to vary inversely with the domestic production outcomes of vegetable growing farms, although some individual vegetable commodities are more sensitive than others (Figure 7). This is more pronounced for vegetables than for other agricultural commodities, especially commodities that are more export-oriented. Differences in vegetable prices received between farms can further reflect the quality of output, the market being targeted and the distance from market, among other things.

TABLE 6 Markets for vegetable produce, Australian vegetable growing farm businesses, 2012–13 per cent of farms

Proportion of growers selling Unit 2012–13p

For export % 4 (21)

Direct to food services % 3 (44)

State capital wholesale % 61 (7)

Local market % 19 (19)

Direct to processor % 28 (10)

Direct to retail % 14 (25)

p Preliminary estimate. Note: Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey



FIGURE 7 Farmgate prices and total production, Australian vegetable growing farm businesses, 2005–06 to 2013–14

Potatoes Pumpkins

Tomatoes Onions

Carrots Cauli�ower

y Provisional estimate. Source: ABARES Australian vegetable growing farms survey

2013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=100

Prices

40

80

120

160

200

2013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=100

Production

50

100

150

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250

300

2013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=1002013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=100

50

100

150

200

250

300

2013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=1002013–14y

2011–12

2009–10

2007–08

2005–06

index2005–06

=100

50

100

150

200

250

50

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400



Box 2 Rainfall and water sources of Australian vegetable growing farm businessesRainfall is important for ensuring availability of water for irrigation, but too much can cause damage to crop production. In 2012–13 below average rainfall was recorded through winter, spring and summer, but farms were able to maintain good vegetable crop yields with plentiful water for irrigation. Some farms reported above average seasonal conditions. These farms were located along the coast of New South Wales and Queensland, as well as Tasmania, where rainfall was higher than other parts of Australia.

MAP 1 Australian rainfall percentiles, 2013–14

Source: Bureau of Meteorology

90–100 Extremely highNon-agricultural land

Rainfall percentiles

70–80 Above average

80–90 Well above average

30–70 Average

10–20 Well below average20–30 Below average

5–10 Extremely low0–5 Severely de�cient

In 2013–14 there were dry seasonal conditions were experienced across most of inland and southern Queensland, northern New South Wales and parts of Western Australia (Map 1). Rainfall was highest in south-eastern Western Australia, South Australia and Tasmania, while mostly average rainfall was received in southern New South Wales and Victoria. At the time of the survey, between March and June, seasonal conditions were improving following a mostly hot and dry summer. In some areas, such as in South Australia and Tasmania, too much rain washed away or damaged crops.

continued ...



Box 2 Rainfall and water sources of Australian vegetable growing farm businesses continued

Vegetable production depends on good quality and reliable water for irrigation. Water storages allow temporal shifts between rainfall events and water use. Vegetable growing farms generally source their water from rivers, water courses, ground water bores and on-farm storages (Table 7).

TABLE 7 Water sources, Australian vegetable growing farm businesses, 2010–11 to 2012–13 per cent of farms

Water source Unit 2010–11 2011–12 2012–13p

Irrigation scheme % 20 (18) 12 (23) 13 (20)

Ground water % 37 (13) 37 (10) 43 (10)

On-farm storage % 28 (11) 37 (11) 31 (11)

Other % 17 (16) 18 (14) 23 (11)

p Preliminary estimate. Note: Percentages will not equal 100 because farms can source their water from multiple water sources. Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey


Financial performance

Over the period that ABARES has surveyed vegetable growing farms (from 2005–06 to 2013–14) average farm cash income of vegetable growing farms has remained relatively steady. Average total cash receipts and costs increased over this period, partly as a result of increases in average farm size, as the industry shifted toward fewer, larger farms, particularly between 2007–08 and 2010–11.

Average total cash costs increased more rapidly than total cash receipts (Figure 8). Expenditure on items directly related to the planting and harvesting of vegetable crops (such as labour, fertiliser, seed, fuel, chemicals and contracts) account for more than 50 per cent of total cash costs in most years.

FIGURE 8 Total cash receipts, total cash costs and farm cash income, Australian vegetable growing farm businesses, 2005–06 to 2013–14 average per farm

Farm cash income

Total cash receiptsTotal cash costs

200

400

600

800

1000

2013–14y

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

2006–07

2005–06

p Preliminary estimate. y Provisional estimate. Note: Financial results are expressed in 2013–14 dollars.Source: ABARES Australian vegetable growing farms survey

2013–14$’000

In 2012–13 estimated average farm cash income declined marginally by 2 per cent to an average of $161 800 (Table 8). Vegetable cash receipts declined as a result of lower vegetable production. Vegetable yields and farmgate prices were generally higher, but this was offset by a lower average area planted to vegetables.



TABLE 8 Financial performance, Australian vegetable growing farm businesses, 2011–12 to 2013–14 average per farm

Financial estimates Unit 2011–12 2012–13p 2013–14y

Realised sample no. 282 308 – 308

No. of growers no. 3 190 2 677 – 2 677

Cash receipts

Vegetable cash receipts $ 642 950 641 500 (7) 657 000

Other cash receipts $ 90 780 134 400 (10) 120 000

Total cash receipts $ 733 730 775 900 (6) 778 000

Cash receipts from vegetables % 88 83 (2) 85

Cash costs

Hired labour $ 95 930 105 700 (8) 122 000

Fertiliser $ 51 110 50 800 (6) 51 000

Contracts paid $ 54 960 59 500 (11) 57 000

Seed $ 40 100 43 400 (8) 43 000

Fuel, oil and grease $ 32 000 38 500 (7) 40 000

Crop and pasture chemicals $ 30 960 30 800 (10) 31 000

Repairs and maintenance—buildings $ 13 660 14 900 (8) 13 000

Interest $ 33 020 38 000 (10) 36 000

Electricity $ 13 980 21 100 (8) 22 000

Administration $ 14 040 15 000 (8) 15 000

Land rent $ 10 510 6 600 (18) 7 000

Packing charges and materials $ 35 010 43 000 (14) 40 000

Rates $ 8 420 10 000 (7) 11 000

Freight $ 29 930 37 000 (13) 37 000

Vehicles, plant & equipment maintenance $ 28 260 32 900 (7) 31 000

Total cash costs $ 568 860 614 100 (6) 622 000

Farm financial performance

Farm cash income $ 164 870 161 800 (11) 156 000

Farm business profit $ 58 790 48 200 (35) 39 000

Rate of return a

– excluding capital appreciation % 2.7 2.3 (19) 2.0

– including capital appreciation % 2.5 2.7 (25) na

Farm capital at 30 June b $ 3 727 000 4 050 900 (6) na

Farm debt at 30 June c $ 467 320 535 300 (10) na

Equity ratio cd % 84 77 (4) na

a Rate of return to farm capital at 1 July. b Excludes leased plant and equipment. c Average per responding farm. d Equity expressed as a percentage of farm capital. p Preliminary estimate. y Provisional estimate. na Not available. Note: Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey



Average farm cash income is estimated to have been $156 000 in 2013–14 (Table 8), 4 per cent lower than in 2012–13. Increased vegetable cash receipts were offset by higher total cash costs and reduced receipts from other agricultural activities, particularly livestock.

New South WalesFarm cash income in New South Wales is estimated to have declined in 2012–13 to an average of $62 900 (Table 9), the lowest estimated farm cash income (in real terms) since ABARES began surveying vegetable growing farm businesses in the state (Figure 9). Changes in the total amount of vegetables produced were mixed across vegetable types, but the average area planted was lower and yields were generally higher. Although prices were higher for most of the main vegetable commodities planted, vegetable cash receipts declined.

Farm cash income is estimated to have increased in 2013–14 to an average of $73 000 (Table 9), 10 per cent lower than the average farm cash income (in real terms) over the nine years to 2013–14 (Figure 9). Vegetable production increased because the average area planted increased and yields were stable. On average, farms shifted production towards potatoes and tomatoes, and away from lettuce, pumpkins and greenpeas. Increased vegetable production offset lower vegetable prices, thus increasing vegetable cash receipts.

VictoriaIn 2012–13 farm cash income in Victoria is estimated to have increased to an average of $218 900 (Table 9), 10 per cent higher than the estimated farm cash income (in real terms) over the eight years to 2012–13 (Figure 9). Average area planted and crop yields were both higher, particularly for less commonly produced vegetables such as carrots, onions, lettuce, cauliflower and cabbages. Although prices for potatoes, carrots and tomatoes were higher, there were large decreases in the prices received for other vegetables. Nevertheless, estimated average vegetable cash receipts increased more than the increase in average cash costs.

Above average yields and higher prices for most vegetable crops are estimated to have resulted in increased average farm cash income in 2013–14 to $314 000 (Table 9), 32 per cent higher than the average farm cash income (in real terms) estimated for Victoria over the nine years to 2013–14 (Figure 9). The area planted to vegetables increased and yields were above average, resulting in increased vegetable production. Vegetable prices were higher for the main vegetable types grown, resulting in higher vegetable cash receipts. Reduced expenditure on repairs and maintenance, interest and plant hire offset higher expenditure on most other inputs.

QueenslandAverage farm cash income in Queensland declined slightly in 2012–13 to an average of $165 800 (Table 9), 11 per cent lower than the estimated average farm cash income (in real terms) over the eight years to 2012–13 (Figure 9). Changes in the total quantity of vegetables produced were mixed across vegetable types, with increased yields for some vegetables being offset by declines for other vegetables. Greenbeans, an important vegetable crop in Queensland, had much higher prices in 2012–13.



Average farm cash income is estimated to have declined in 2013–14 to $58 000 (Table 9), the lowest estimated farm cash income since ABARES began surveying vegetable growing farm businesses in the state (Figure 9). Crop yields were generally just below average and lower prices for the main vegetables grown in Queensland contributed to reduced average total cash receipts. Average total cash costs also increased as a result of increased expenditure on hired labour associated with planting and harvesting a larger vegetable crop.

Changes in the average area operated and total quantity of vegetables produced in Queensland (Table 9) mask the change in the mix of vegetables grown between 2012–13 and 2013–14. The average quantity produced of the main vegetables, particularly greenbeans and potatoes, declined. However, the average area planted to pumpkins, carrots, cauliflower and greenpeas increased.

South AustraliaFarm cash income in South Australia is estimated to have declined in 2012–13 to an average of $196 400 (Table 9), 8 per cent lower than the eight-year average (in real terms) to 2012–13 (Figure 9). The average area planted to all commonly produced vegetables declined, but yields were higher for most vegetables except onions, carrots and cauliflower. Much lower prices, particularly for potatoes, also contributed to a decline in vegetable cash receipts.

Average farm cash income is estimated to have declined in 2013–14 to $169 000 (Table 9), 19 per cent lower than the nine-year average (in real terms) to 2013–14 (Figure 9). The average area planted and average yield outcomes were both mixed across vegetable types, although the area planted and price received for potatoes increased. Average cash costs are estimated to have remained about the same as the previous year.

Western AustraliaAverage farm cash income in Western Australia increased in 2012–13 to $273 600 (Table 9), 12 per cent higher than the eight-year average (in real terms) to 2012–13 (Figure 9). Yields were slightly lower, although an increase in the total area planted and higher prices for most vegetables resulted in increased total cash receipts. Production of onions and carrots increased, but declined for broccoli and lettuce, mostly reflecting the change in the area planted to these vegetables.

Average farm cash income is estimated to have increased further in 2013–14 to an average of $321 000 (Table 9), the highest estimated average farm cash income (in real terms) for vegetable growing farms in the state since ABARES began surveying in 2007 (Figure 9). Although farmgate prices for most of the main vegetable commodities are estimated to have decreased, the area planted to vegetables increased and yields remained about the same as 2012–13, increasing overall production and holding up vegetable cash receipts. Average total cash costs decreased as a result of reduced expenditure on capital items such as repairs and maintenance, plant hire and interest paid.



TasmaniaVegetable production as a proportion of total state gross value of agricultural production is higher in Tasmania than any other state, accounting for 20 per cent. Vegetable growing farm businesses in the state are also the most diverse, with only 51 per cent of total farm receipts attributable to vegetables (Table B6).

Despite vegetable cash receipts declining, estimated average farm cash income increased marginally in 2012–13 to $135 400 (Table 9), 30 per cent higher than the eight-year average (in real terms) to 2012–13 (Figure 9). Yields were variable across vegetable commodities, decreasing for potatoes, but increasing for carrots and onions. The average area planted decreased for all vegetable commodities, decreasing most strongly for the main vegetable commodities. The effect on receipts of lower vegetable production was offset by an increase in vegetable prices.

Average farm cash income is estimated to have decreased in 2013–14 to $107 000 (Table 9), although this was 14 per cent higher than the nine-year average (in real terms) to 2013–14 (Figure 9). The average area planted was down across all vegetable commodities, although yields were marginally higher for potatoes, reflecting the better than average seasonal conditions for most farms.



TABLE 9 Physical and financial performance, vegetable growing farm businesses, by state, 2012–13 and 2013–14 average per farm

Vegetable cash receipts Unit 2012–13p

% change from

2011–12 2013–14y

% change from

2012–13

New South Wales $ 213 200 (15) –30 240 000 (19) 13

Victoria $ 1 083 100 (11) 23 1 179 000 (24) 9

Queensland $ 705 000 (18) 10 679 000 (22) –4

South Australia $ 642 600 (16) –15 614 000 (23) –4

Western Australia $ 1 044 600 (13) 1 1 062 000 (27) 2

Tasmania $ 321 700 (16) –1 310 000 (27) –4

Area sown to vegetables

New South Wales ha 13.6 (21) –30 14.1 (28) 4

Victoria ha 55.7 (12) 13 56.3 (26) 1

Queensland ha 32.9 (18) –12 35.5 (34) 8

South Australia ha 32 (19) –2 32.3 (27) 1

Western Australia ha 28.5 (17) 18 30.8 (26) 8

Tasmania ha 26.7 (15) –10 22.6 (30) –15

Quantity of vegetables produced

New South Wales t 374 (40) –25 441 (38) 18

Victoria t 1 460 (13) 27 1 508 (26) 3

Queensland t 593 (16) –20 714 (27) 20

South Australia t 1 330 (16) –4 1 252 (27) –6

Western Australia t 1 184 (20) 18 1 409 (31) 19

Tasmania t 1 131 (12) –12 927 (24) –18

Farm cash income

New South Wales $ 62 900 (31) –32 73 000 (33) 22

Victoria $ 218 900 (22) 105 314 000 (29) 47

Queensland $ 165 800 (30) –8 58 000 (94) –64

South Australia $ 196 400 (23) –30 169 000 (36) –12

Western Australia $ 273 600 (20) 6 321 000 (33) 21

Tasmania $ 135 400 (20) 5 107 000 (36) –8

p Preliminary estimate. y Provisional estimate. Note: Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey



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2011–122010–112009–102008–092007–082006–072005–06

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2012–13p2013–14y

2011–122010–112009–102008–092007–082006–072005–06

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2011–122010–112009–102008–092007–082006–072005–06

2012–13p2013–14y

2011–122010–112009–102008–092007–082006–072005–06

2012–13p2013–14y

2011–122010–112009–102008–092007–082006–072005–06

50100

150

200

250

300

350


Capital, debt and investment

Profile of capital usedLand and fixed farm improvements accounted for 81 per cent of the average total value of capital used by Australian vegetable growing farms in 2012–13. Permanent water access entitlements accounted for a further 3 per cent; vehicles, plant and machinery 12 per cent; and livestock 1 per cent.

The average value of land used by vegetable farms is high compared with average values for most other farm types. The average value of land operated by vegetable farms at 30 June 2013 was $17 500 a hectare (including fixed improvements), compared with an average of $9200 a hectare for dairy farms, $1300 for grain farms and less than $500 for sheep and beef cattle farms. Values for land used by vegetable growing farms reflect productive soils, high rainfall and/or irrigation access, large investment in buildings and structures, and the location of many Australian vegetable growing farms close to urban areas.

On average, 81 per cent of the land operated by vegetable growing farm businesses was owned by the business proprietors (freehold land) in 2012–13. A further 8 per cent was leased privately owned land and 5 per cent was land leased from government (crown lease). The proportion of leased land was similar to that for dairy industry farms, an industry that also operates relatively high value land, and higher than the area leased by grain industry farms (12 per cent).

An estimated 21 per cent of vegetable growing farms leased some privately owned land. Leasing allows farms to use additional land to make more efficient use of available labour, machinery and other capital. In some cases leasing may also provide new farmers a way to enter the industry. Share-farming, another alternative to land ownership, is relatively rare among vegetable growing farms, with less than 1 per cent of vegetable growing farm businesses engaged in share-farming on land owned by others in 2012–13.

Producers’ capacity to generate farm income is influenced by their past investments in land to expand the scale of their farming activities and in new infrastructure, plant and machinery to boost long-term productivity.

Only a relatively small proportion of farms buy land in any one year. In 2012–13 the proportion of farms acquiring more owned land and leased land was estimated to be about 2 per cent (Figure 10). Many vegetable growing farms find it more cost-effective to lease land than purchase additional land in the short term.



Most of the change in the total value of land capital has been the result of increased land prices per hectare, particularly for farms close to metropolitan areas that are facing pressures from urbanisation, rather than because farms purchased land (Figure 11).

FIGURE 10 Proportion of farms acquiring land, Australian vegetable growing farm businesses, 2005–06 to 2012–13 per cent of farms

%

p Preliminary estimate.Note: Results are not available for the 2013–14 projection year.Source: ABARES Australian vegetable growing farms survey

Per cent of farms increasing area leasedPer cent of farms increasing area owned

2011–12

2009–10

2007–08

2005–06

2012–13p

2010–11

2008–09

2006–07

1

2

3

4

5

6

FIGURE 11 Land values, Australian vegetable growing farm businesses, 2005–06 to 2012–13 average per farm

$2013–14per hectare

p Preliminary estimate.Note: Results are not available for the 2013–14 projection year. Financial results are expressed in 2013–14 dollars.Source: ABARES Australian vegetable growing farms survey

2011–12

2009–10

2007–08

2005–06

2012–13p

2010–11

2008–09

2006–07

5000

10 000

15 000

20 000



Most farmers make some annual investment in plant, vehicles, machinery and/or infrastructure. Net investment is the difference between the total value of plant, vehicles, machinery and farm infrastructure purchased and the total value of those items sold. In 2008–09 and 2009–10 investment in plant, machinery and farm infrastructure (such as buildings, irrigation systems and water supply structures) was stimulated by the investment allowance, which was offered to businesses that committed to investing in depreciating assets between 31 December 2008 and 31 December 2009 (Figure 12). This was part of the Australian Government’s Nation Building and Jobs Plan to support economic activity during the global financial downturn.

In addition to acquiring new capital items and replacing old items, ongoing maintenance and repair of existing plant, vehicles, machinery and farm infrastructure is needed. As the amount of plant and equipment has increased, so too has average expenditure on the repairs and maintenance required to maintain the stock (Figure 12).

FIGURE 12 Composition of non-land net capital additions, Australian vegetable growing farm businesses, 2007–08 to 2012–13 average per farm

Computer, o�ce, workshop and other equipmentHouses and accommodation

Buildings, fences, yards and structuresLivestock handling

Irrigation equipment

Harvesting and handling

Cultivation, sowing, fertiliser and spraying

VehiclesTractors

Repairs and maintenance

2013–14$’000

p Preliminary estimate. Note: Financial results are presented in 2013–14 dollars. Farm capital value results are not available in the 2013–14 projection year.Source: ABARES Australian vegetable growing farms survey

10

20

30

40

60

50

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

Most reported annual expenditure on repairs and maintenance is the capital cost of replacing and upgrading items of farm capital, such as fencing, stockyards and watering facilities. In recent years investment in plant and equipment has declined in real terms (Figure 12). Investment in crop growing plant and machinery accounts for the bulk of net capital additions (excluding land).

Farm debtDebt is an important source of funds for farm investment and ongoing working capital for vegetable growing farm businesses. Funding of family farms for expansion and improvement is limited to the funds available to the farm business, the profits the business can generate and the funds it can borrow.

The annual change in average farm business debt is the balance between the amount of principal repaid over the year and the increase in principal owed (new borrowing). The increase in average farm debt is a result of increased borrowing and a reduced rate of principal repayment.



Farmers paid high interest rates in the early 1990s but these rates declined in the mid and late 1990s. Lower interest rates and increased lending fuelled the boom in land prices, raising farm equity (net wealth) and inducing lenders to provide more finance (ABARES 2014b). This continued in some regions until land values corrected after 2009. Debt servicing was supported by interest subsidies that were provided to farmers in drought through the exceptional circumstances arrangements. For many regions this assistance was sustained for most of the 2000s.

In addition to low interest rates, increasing farm size contributed to debt over this period. An increase in the average size of farm enterprises resulted in higher borrowing for ongoing working capital. Furthermore, loan repayments slowed and borrowing to meet working capital requirements increased for producers during the 2000s, as drought in many regions reduced farm cash incomes. Over the eight years to 2012–13 the proportion of debt held by vegetable growing farm businesses that was attributable to land purchases declined and working capital debt increased (Figure 13).

FIGURE 13 Composition of farm business debt, Australian vegetable growing farm businesses, 2007–08 to 2012–13 average per farm

2013–14$’000

p Preliminary estimate. Note: Financial results are expressed in 2013–14 dollars. Farm debt results are not available for the 2013–14 projection year.Source: ABARES Australian vegetable growing farms survey

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

100

200

300

400

500

600

700 Buildings and structures

Land development

Machinery, plant and vehicles

Reconstructed debt

Land purchase

Working capital

In 2012–13 the average farm debt of Australian vegetable growing farm businesses was $573 800 (in real terms). Most debt held was for working capital (42 per cent) and land purchases (31 per cent). Other debt, including debt for buildings and structures, land development, reconstructed debt, machinery, plant and vehicles, accounted for the remaining 27 per cent.

The proportion of vegetable growing farms with relatively high debt varies across states. Farms with debt exceeding $1 million are large businesses with a higher level of new investment. The proportion of vegetable farms with debts exceeding $1 million is higher in Victoria, Tasmania and Queensland than the estimated national average of 13 per cent (Table 10).



TABLE 10 Distribution of farm business debt, vegetable growing farm businesses, by state, 30 June 2013 per cent of farms

Farm business debt Unit AustraliaNew South

Wales Victoria QueenslandSouth

AustraliaWestern Australia Tasmania

<$100 000 % 53 (7) 85 (9) 40 (23) 41 (16) 68 (11) 36 (33) 28 (33)

$100 000 and <$250 000 % 12 (24) 2 (125) 7 (77) 22 (40) 15 (38) 8 (82) 20 (42)

$250 000 and <$500 000 % 11 (21) 2 (74) 15 (32) 18 (38) 5 (60) 15 (50) 10 (66)

$500 000 and <$1 million % 12 (24) 10 (69) 18 (42) 2 (85) 1 (105) 27 (45) 24 (47)

$1 million and <$2 million % 5 (28) na – 7 (51) 5 (40) 3 (64) 7 (90) 15 (59)

≥$2 million % 8 (16) 1 (108) 12 (38) 12 (14) 9 (40) 6 (75) 3 (59)

na Not available. Note: Preliminary estimates. Farm debt results are not available for the 2013–14 projection year. Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey

Farm equity and debt servicingThe proportion of vegetable farm receipts used to meet interest payments (interest-to-receipts ratio) increased from 3.2 per cent in 2005–06 to around 5.2 per cent in 2009–10 (Figure 14), largely because of increasing farm debt. The interest-to-receipts ratio has stabilised since then as borrowing has slowed and interest rates have declined. The average equity ratio has remained around 80 per cent over the same period, with increases in farm debt matched by increases in the total value of capital.

FIGURE 14 Ratios of interest paid to receipts and equity, Australian vegetable growing farm businesses, 2005–06 to 2012–13 average per farm

Equity ratioInterest paid to receipts(right axis)

p Preliminary estimate. Note: The equity ratio is expressed as a percentage of farm capital, and is an average per responding farms. Results are not available for the 2013–14 projection year.Source: ABARES Australian vegetable growing farms survey

% %

1

2

3

4

5

6

7

8

9

10

20

30

40

50

60

70

80

90

2012–13p

2011–12

2010–11

2009–10

2008–09

2007–08

2006–07

2005–06



A lender’s willingness to provide loans is critical to farms maintaining credit reserves. Financial institutions lend to farm businesses based on the equity farmers have in their businesses and the capacity of the business to service increased debt in the long term. Most businesses that institutional lenders allow to operate with an equity ratio of less than 70 per cent are large operations that mostly generate high farm cash incomes or have access to substantial off-farm assets or income.

The proportion of vegetable growing farms with relatively low additional borrowing capacity (equity ratio of less than 70 per cent) and relatively high debt serving commitments (interest-to-receipts ratio exceeding 15 per cent) was estimated to be 9 per cent in 2012–13 (Figure 15).

FIGURE 15 Debt servicing and borrowing capacity, Australian vegetable growing farm businesses, 2005–06 to 2012–13 per cent of farms

%

p Preliminary estimate. Note: The equity ratio is expressed as a percentage of farm capital, and is an average per responding farms. Results are not available for the 2013–14 projection year.Source: ABARES Australian vegetable growing farms survey

Farms with both low equity and high interest-to-receiptsratios

Farms with less than 70% equity ratio

Farms with greater than 15% interest-to-receipts ratio

5

10

15

20

25

2011–12

2009–10

2007–08

2005–06

2012–13p

2010–11

2008–09

2006–07


Farms growing vegetables under the National Vegetable Levy

This report was funded from the proceeds of the National Vegetable Levy (NVL) and managed by HAL. Since NVL-paying farms make a substantial financial contribution to this report, a section is included that specifically covers these vegetable farms. Growers that do not produce any vegetables covered by the NVL were excluded from the analysis in this chapter (that is, farms producing only potatoes, tomatoes, onions, asparagus or mushroom were excluded) (Box 3). In June 2014 ABARES published a report specifically about farms that produce vegetables covered by the NVL (Valle 2014).

Box 3 Vegetables included and excluded from the National Vegetable Levy

Vegetables under the National Vegetable Levy Vegetables not covered by the NVL

Carrots Potatoes

Pumpkins Onions

Sweet corn Tomatoes

Peas and beans Asparagus

Lettuce Mushrooms

Broccoli

Cauliflower

Capsicums

Other vegetables

Note: Asparagus and mushrooms are not collected as individual vegetable commodities as part of the ABARES Australian vegetable growing farms survey. Source: HAL 2012



Those farms paying the NVL on eligible vegetable crops accounted for an estimated 74 per cent of the population of vegetable growing farms in 2012–13 (Table 11). Many of these farms also produced vegetables not covered by the levy.

TABLE 11 Population of Australian vegetable growing farm businesses, by area planted to vegetables, 2012–13

Area planted to vegetables

All vegetable growing farm businesses

Proportion of farms that pay NVL a

no. %

<5 hectares 1 072 85

5–20 hectares 801 69

20–70 hectares 535 65

>70 hectares 269 70

All farms 2 677 74

a Population excludes farms that are specialist potato, tomato, onion, asparagus and mushroom growers. Note: Preliminary estimates. Source: Australian Bureau of Statistics

On average, NVL-paying farms are somewhat smaller than the average for the whole population. In 2012–13 the average area operated by NVL-paying farms was estimated to have been around 170 hectares, compared with 196 hectares for the whole population. NVL-paying farms also tend to be more diversified than the average, growing a range of vegetable crops as well as non-vegetable enterprises such as livestock. In comparison, non-NVL farms tend to be larger and more specialised in only one or two vegetable enterprises.

The physical and financial performance of NVL-paying vegetable growing farms closely matches the population of all vegetable growing farm businesses. Changes in estimated farm cash income results between 2012–13 and 2013–14 were about the same for both populations (Table 12).

TABLE 12 Financial performance, National Vegetable Levy paying farms, by state, 2012–13 and 2013–14

State NVL-paying farms

All vegetable growing farm businesses

Farm cash income ($)

Change from 2012–13 (%)

Farm cash income ($)

Change from 2012–13 (%)

New South Wales 65 000 13 77 000 18

Victoria 448 000 25 322 000 47

Queensland 21 000 –81 59 000 –64

South Australia 206 000 – 173 000 –12

Western Australia 416 000 20 330 000 21

Tasmania 91 000 –31 124 000 –8

Note: Population excludes farms that are specialist potato, tomato, onion, asparagus and mushroom growers. All estimates are provisional. Source: ABARES Australian vegetable growing farms survey



Estimated average farm cash income was $161 600 in 2012–13 (Table 13), 2 per cent higher than the eight-year average (in real terms) to 2012–13. The quantity of vegetables produced was lower as a result of a lower area planted to vegetables. Average farmgate prices were mixed across vegetable types, increasing for lettuce, broccoli and cauliflower, but reducing for cabbages, carrots and pumpkins. Overall, lower average cash receipts for vegetables and increased expenditure on the main cash costs of production resulted in lower farm cash income in 2012–13 for NVL-paying vegetable growing farms.

Average farm cash income is estimated to have fallen further in 2013–14 to an average of $152 000 (Table 13), 5 per cent lower than the nine-year average (in real terms) to 2013–14. An increase in the area planted to vegetables, and similarly high yields to 2012–13, increased overall vegetable production. Although prices were generally lower, particularly for cauliflower, carrots, cabbages and pumpkins, vegetable cash receipts increased. However, the increase in receipts was more than offset by an increase in average total cash costs with increased expenditure on most inputs.



TABLE 13 Financial performance, Australian National Vegetable Levy paying farms, 2011–12 to 2013–14 average per farm


Realised sample no. 205 215 – 200

No. of growers no. 2 319 1 993 – 1 850

Cash receipts





Cash costs

Hired labour $ 107 130 114 300 (11) 140 000

Fertiliser $ 42 870 44 800 (7) 46 000

Contracts paid $ 58 830 61 500 (13) 60 000

Seed $ 39 330 43 000 (11) 44 000




Interest $ 32 400 33 500 (13) 32 000

Electricity $ 14 930 21 900 (9) 24 000

Administration $ 14 400 14 200 (10) 15 000

Land rent $ 10 530 5 000 (25) 5 000


Rates $ 8 370 9 800 (9) 11 000

Freight $ 30 920 36 000 (18) 38 000


Total cash costs $ 578 760 603 100 (8) 641 000


Farm cash income $ 169 990 161 600 (14) 152 000


Rate of return a


– including capital appreciation % 3.4 2.7 (26) na




a Rate of return to farm capital at 1 July. b Excludes leased plant and equipment. c Average per responding farm. d Equity expressed as a percentage of farm capital. p Preliminary estimate. y Provisional estimate. na Not available. Note: Figures in parentheses are standard errors expressed as a percentage of the estimate. Population excludes farms that are specialist potato, tomato, onion, asparagus and mushroom growers. Source: ABARES Australian vegetable growing farms survey


Appendix A

Survey methods and definitions

Target populationThe vegetable survey is designed from a frame (population list) drawn from the Australian Business Register (ABR) and maintained by the Australian Bureau of Statistics (ABS). The ABR based frame provided to ABARES consists of agricultural businesses registered with the Australian Taxation Office, together with their corresponding statistical local area, industry classification and size of operation variable. The size variable is an indicator of the extent of agricultural activity.

ABARES surveys target vegetable establishments that make a significant contribution to the total value of agricultural output (commercial farms). Farms excluded from ABARES surveys will be the smallest units, which in aggregate will contribute little to the total value of vegetable production.

The vegetable growing industry definition is based on the Australian and New Zealand Standard Industrial Classification (ANZSIC). This classification is consistent with an international standard applied comprehensively across Australian industry, permitting comparisons between industries, both within Australia and internationally. Farms assigned to a particular ANZSIC class have a high proportion of their total output characterised by that class. Further information on ANZSIC and on the vegetable growing industry is provided in Australian and New Zealand Standard Industrial Classification (ABS 2006, cat. no. 1292.0).

For the purposes of this survey, vegetable farms in the sample were selected from units classified in ANZSIC 0122 (Vegetable growing, under cover) and 0123 (Vegetable growing, outdoors). These classes consist of units engaged mainly in growing vegetables, with primary activities including the production of capsicums, cucumbers, herbs, lettuce, tomatoes, asparagus, beans, carrots, garlic, zucchinis, onions, peas and potatoes.

Survey design and sample weightingThe target population is grouped into strata defined by state and size of operation. The size of each stratum was determined using Dalenius-Hodges method (Lehtonen & Pahkinen 2004). The sample allocation to each stratum is a compromise between allocating a higher proportion of the sample to strata with high variability in the size variable and an allocation proportional to the population of the stratum.


Appendix A: Survey methods and definitions

In 2012–13 there were an estimated 2671 vegetable farm businesses in Australia (farm businesses with an estimated value of agricultural operations of at least $40 000) (Table A1). These farms accounted for 48 per cent of all vegetable growing farms (ABS 2014a). Results are based on 308 vegetable farms that responded to the survey. Queensland, New South Wales and Victoria had the largest numbers of commercial vegetable farms, accounting for around two-thirds of vegetable farms across Australia. The Northern Territory has been excluded from the survey since 2009–10 because of the small number of commercial vegetable farms and the associated confidentiality requirements.

TABLE A1 Population and sample numbers, Australian vegetable growing farm businesses, 2011–12 and 2012–13

State Unit 2011–12 2012–13p

Realised sample No. of growers Realised sample No. of growers

New South Wales no. 55 661 54 713

Victoria no. 43 601 55 468

Queensland no. 71 764 71 621

South Australia no. 48 399 58 322

Western Australia no. 34 397 37 323

Tasmania no. 31 368 33 224

Australia no. 282 3 190 308 2 671

p Preliminary estimate. Note: ABARES surveys vegetable growing farm businesses with an estimated value of agricultural operations of at least $40 000. Source: Australian Bureau of Statistics

Farm-level estimates published in the report are calculated by appropriately weighting the data collected from each sample farm and using the weighted data to calculate population estimates. Sample weights are calculated to that population estimates from the sample for numbers of farms and areas of vegetables planted correspond as closely as possible (at a state level and by groups of farms by area of vegetables planted) to the most recently available ABS estimates from data collected in the Agricultural Census and Agricultural Survey. The weighting process ensures estimates are applicable for all commercial vegetable growing farms rather than just those in the sample.

The weighting methodology for the vegetable survey uses a model-based approach with a linear regression model linking the survey variables and the estimation benchmark variables. The details of this method are described by Bardsley and Chambers (1984).

Benchmark variables used to weight the data provided by the ABS include:• total numbers of farms in scope• total area planted to vegetables for human consumption.

Generally, larger farms have smaller weights and smaller farms have larger weights, reflecting the strategy of sampling a higher fraction of larger farms than smaller farms (the former having greater variability of key characteristics and accounting for a much larger proportion of total output) and the relatively lower number of large farms.



ABARES collects information on all vegetable commodities, but does not weight the sample of farms collected by the type of vegetables produced. Consequently, some vegetable commodities maybe over or underrepresented in the survey compared with their relative contribution to the overall gross value of vegetable production.

Sometimes the survey samples of specific vegetable commodities are too small to report physical and financial information. To protect confidentiality, commodity specific results collected from the ABARES survey of vegetable growing farm businesses are only reported for Australia overall, and limited to the main vegetable commodities sampled.

Survey questionnaireThe survey of vegetable growing enterprises covered the following topics:• pre-interview questions, to:

ሲ determine eligibility and stratification level ሲ establish business structure and activities ሲ confirm address and location ሲ check availability of financial and production data

• production details ሲ vegetable-related production for the survey year ሲ details of each type of product (including quantity produced, sales, transfers and stocks on hand)

• labour ሲ family and hired labour ሲworkers’ status in the operation, hours worked and wages paid ሲ questions about operators’ and spouses’ education, off-farm work and government assistance

• assets ሲ type and value of liquid assets (owned by or available to the business), land, vehicles, plant and equipment, and buildings and other structural improvements used in the business

• liabilities ሲ details of farm debt

• income and expenses ሲ all costs and income associated with the vegetable business

• supplementary survey questions covering a range of issues, including: ሲ irrigation water and chemical usage ሲ pests and diseases ሲ farm sale outlets ሲ sources of information ሲ future intentions ሲ constraints ሲ relationship of growers with main buyers.



Reliability of estimatesThe reliability of the estimates of population characteristics presented in this report depends on the design of the sample and the accuracy of the measurement of characteristics for the individual sample farms.

Preliminary estimates and provisional projectionsEstimates for 2009–10 and all earlier years are final. All data from farmers, including accounting information, have been reconciled, final production and population information from the ABS has been included and no further change is expected in the estimates.

The 2011–12 estimates are preliminary, based on full production and accounting information from farmers. However, editing and addition of sample farms may be undertaken and ABS production and population benchmarks may also change.

The 2012–13 estimates are provisional projections developed from the data collected through on-farm interviews undertaken between February and August, and from the preliminary estimates. Projection estimates include crop and livestock production, receipts and expenditure up to the date of interview, together with expected production receipts and expenditure for the reminder of the projection year. Modifications are made to expected receipts and expenditure where significant production and price change has occurred post-interview. Provisional projection estimates are subject to greater uncertainty than the preliminary and final estimates.

Preliminary and projection estimates of farm financial performance are produced within a few weeks of completion of survey collections. However, these may be updated several times at later dates. These subsequent versions will be more accurate because they will be based on upgraded information and slightly more accurate input datasets.

Sampling errorsOnly a subset of farms out of the total number of farms in a particular industry is surveyed. The data collected from each sample are weighted to calculate population estimates. Estimates derived from these farms are likely to be different from those that would have been obtained if information had been collected from a census of all farms. Any such differences are called ‘sampling errors’.

The size of the sampling error is most influenced by the survey design and estimation procedures, as well as the sample size and variability of farms in the population. The larger the sample size, the lower the sampling error is likely to be. Hence, national estimates are likely to have lower sampling errors than industry and state estimates.

To give a guide to the reliability of the survey estimates, standard errors are calculated for selected estimates. These estimated errors are expressed as percentages of the survey estimates and termed relative standard errors (RSEs).



Comparing estimatesWhen comparing estimates between two groups, it is important to recognise that the differences are also subject to sampling error. As a rule of thumb, a conservative estimate of the standard error of the difference can be constructed by adding the squares of the estimated standard errors of the component estimates and then taking the square root of the result. For example:

((6 x $100 000 / 100)2 + (6 x $125 000 / 100)2) = $9605

Suppose the estimates of total cash receipts were $100 000 in Victoria and $125 000 in Tasmania—a difference of $25 000—and the RSE is given as 6 per cent for each estimate, then the standard error of the difference can be estimated as:

A 95 per cent confidence interval for the difference is:

$25 000 ± 1.96*$9605 = ($6174, $43 826)

Hence, if a larger number (towards infinity) of different samples are taken, approximately 95 per cent of the time the difference between the two estimates will be between $6174 and $43 826. Also, since zero is not in this confidence interval, it is possible to say that the difference between the estimates is statistically significantly different from zero at the 95 per cent confidence level.


TABLE B1 Financial performance, vegetable growing farm businesses, New South Wales, 2011–12 to 2013–14 average per farm


No. of growers no. 661 713 – 713

Cash receipts





Cash costs

Hired labour $ 26 330 29 200 (25) 32 000

Fertiliser $ 33 630 17 100 (15) 18 000

Contracts paid $ 13 080 10 400 (35) 12 000

Seed $ 21 330 13 900 (16) 13 000




Interest $ 10 060 11 900 (24) 12 000

Electricity $ 7 660 15 000 (31) 17 000

Administration $ 7 480 6 300 (14) 6 000

Land rent $ 4 480 2 700 (48) 3 000


Rates $ 4 330 6 800 (16) 7 000

Freight $ 6 530 9 500 (23) 10 000


Total cash costs $ 232 980 210 100 (12) 219 000


Farm cash income $ 92 800 62 900 (31) 73 000

Farm business profit $ –5 190 –25 100 (68) –18 000

Rate of return a

– excluding capital appreciation % 0.5 –0.4 (168) –0.1





Appendix B

Financial performance by state


Appendix B: Financial performance by state

TABLE B2 Financial performance, vegetable growing farm businesses, Victoria, 2011–12 to 2013–14 average per farm



Cash receipts

Vegetable cash receipts $ 881 680 1 083 100 (11) 1 179 000


Total cash receipts $ 991 740 1 249 300 (10) 1 349 000


Cash costs

Hired labour $ 141 550 187 200 (15) 198 000

Fertiliser $ 54 910 68 400 (11) 70 000

Contracts paid $ 132 830 142 200 (16) 139 000

Seed $ 58 040 61 500 (16) 61 000




Interest $ 52 560 64 200 (21) 61 000

Electricity $ 14 870 28 100 (15) 29 000

Administration $ 21 680 28 200 (18) 29 000

Land rent $ 12 080 14 300 (31) 15 000


Rates $ 16 690 19 100 (15) 20 000

Freight $ 40 640 51 400 (22) 51 000


Total cash costs $ 885 110 1 030 400 (10) 1 035 000


Farm cash income $ 106 630 218 900 (22) 314 000

Farm business profit $ –24 220 66 700 (68) 157 000

Rate of return a








TABLE B3 Financial performance, vegetable growing farm businesses, Queensland, 2011–12 to 2013–14 average per farm



Cash receipts





Cash costs

Hired labour $ 126 750 149 600 (17) 193 000

Fertiliser $ 30 660 49 600 (14) 49 000

Contracts paid $ 40 090 76 100 (25) 70 000

Seed $ 25 060 43 100 (20) 44 000




Interest $ 35 070 49 300 (18) 49 000

Electricity $ 10 020 16 700 (10) 18 000

Administration $ 13 880 14 500 (13) 15 000

Land rent $ 13 400 8 200 (35) 8 000


Rates $ 5 980 8 600 (14) 10 000

Freight $ 48 720 69 300 (25) 68 000


Total cash costs $ 517 830 710 700 (14) 743 000


Farm cash income $ 180 750 165 800 (30) 58 000

Farm business profit $ 84 540 60 100 (77) –52 000

Rate of return a








TABLE B4 Financial performance, vegetable growing farm businesses, South Australia, 2011–12 to 2013–14 average per farm



Cash receipts





Cash costs

Hired labour $ 64 750 69 600 (27) 72 000

Fertiliser $ 72 700 57 400 (16) 59 000

Contracts paid $ 61 200 42 700 (33) 43 000

Seed $ 71 840 72 300 (19) 71 000




Interest $ 22 470 22 900 (32) 22 000

Electricity $ 14 510 15 500 (18) 16 000

Administration $ 10 720 10 200 (16) 10 000

Land rent $ 14 830 3 400 (46) 3 000


Rates $ 10 360 10 100 (15) 11 000

Freight $ 28 640 23 500 (30) 24 000


Total cash costs $ 577 940 501 800 (16) 495 000


Farm cash income $ 282 320 196 400 (23) 169 000


Rate of return a








TABLE B5 Financial performance, vegetable growing farm businesses, Western Australia, 2011–12 to 2013–14 average per farm



Cash receipts

Vegetable cash receipts $ 1 031 510 1 044 600 (13) 1 062 000


Total cash receipts $ 1 139 760 1 182 100 (13) 1 207 000


Cash costs

Hired labour $ 173 450 157 100 (16) 167 000

Fertiliser $ 90 060 83 400 (20) 79 000

Contracts paid $ 39 930 37 600 (40) 35 000

Seed $ 52 760 61 400 (18) 61 000




Interest $ 39 060 46 500 (31) 42 000

Electricity $ 30 930 36 300 (13) 39 000

Administration $ 19 270 22 500 (19) 23 000

Land rent $ 5 480 3 500 (46) 4 000


Rates $ 5 820 6 600 (23) 7 000

Freight $ 37 570 42 400 (14) 43 000


Total cash costs $ 881 500 908 500 (13) 886 000


Farm cash income $ 258 260 273 600 (20) 321 000


Rate of return a








TABLE B6 Financial performance, vegetable growing farm businesses, Tasmania, 2011–12 to 2013–14 average per farm



Cash receipts





Cash costs

Hired labour $ 32 630 34 000 (27) 57 000

Fertiliser $ 53 330 68 400 (15) 69 000

Contracts paid $ 43 330 52 400 (15) 50 000

Seed $ 27 720 32 500 (28) 30 000




Interest $ 43 010 44 000 (16) 42 000

Electricity $ 13 230 25 000 (13) 25 000

Administration $ 11 630 12 600 (13) 13 000

Land rent $ 13 490 7 900 (46) 8 000


Rates $ 8 060 10 100 (21) 12 000

Freight $ 8 580 15 900 (45) 15 000


Total cash costs $ 414 480 497 000 (13) 502 000


Farm cash income $ 128 420 135 400 (20) 107 000

Farm business profit $ 42 370 28 500 (84) –3 000

Rate of return a







Appendix C

Selected estimates by commodity

TABLE C1 Selected estimates for cabbage growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm

Selected estimates Unit 2009–10 2010–11 2011–12 2012–13p 2013–14y

Realised sample no. 26 – 28 – 35 – 31 – 29 –

No. of growers no. 273 – 175 – 286 – 334 – 319 –

Price $/t 532 (20) 808 (11) 602 (16) 441 (28) 400 (25)

Cash costs $/t 441 (22) 690 (14) 423 (27) 333 (29) na –

– including imputed labour $/t 463 (21) 713 (14) 450 (25) 369 (27) na –

Net cash return a $/t 107 (29) 120 (65) 107 (31) 35 (26) na –

Area sown ha 7 (18) 11 (25) 9 (25) 6 (34) 6 (52)

Production t 404 (20) 363 (20) 363 (26) 252 (31) 281 (52)

Quantity sold t 404 (20) 362 (20) 363 (26) 244 (33) 267 (53)

Yield t/ha 58 (11) 32 (14) 41 (11) 41 (8) 46 (10)

Area irrigated ha 7 (18) 11 (25) 9 (25) 6 (34) na –

Volume of irrigation

water applied ML 42 (38) 53 (24) 32 (32) 18 (27) na –

Irrigation water per hectare ML/ha 6 (44) 4.7 (23) 3.6 (25) 3 (17) na –

a Excludes imputed labour. p Preliminary estimate. y Provisional estimate. na Not available. Note: Population includes all farms that grew selected vegetable commodity. Figures in parentheses are standard errors expressed as a percentage of the estimate. Source: ABARES Australian vegetable growing farms survey


Appendix C: Selected estimates by commodity

TABLE C2 Selected estimates for broccoli growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 271 – 189 – 277 – 177 – 119 –

Price $/t 1 434 (8) 1 522 (11) 1 466 (19) 1 574 (39) 1 672 (23)

Cash costs $/t 1 225 (9) 1 140 (13) 1 097 (20) 1 339 (52) na –

– including imputed labour $/t 1 283 (8) 1 165 (13) 1 136 (21) 1 365 (52) na –


Area sown ha 24 (18) 34 (13) 25 (24) 30 (28) 55 (39)

Production t 217 (21) 373 (19) 328 (41) 343 (77) 481 (37)

Quantity sold t 216 (21) 372 (19) 335 (40) 342 (77) 480 (37)

Yield t/ha 9 (10) 11 (13) 13 (28) 12 (59) 9 (45)




Irrigation water per hectare ML/ha 3.5 (16) 3.8 (31) 2.8 (19) 2.7 (18) na –


TABLE C3 Selected estimates for lettuce growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 274 – 207 – 218 – 239 – 227 –

Price $/t 1 360 (11) 1 368 (17) 1 366 (18) 1 649 (20) 1 697 (14)

Cash costs $/t 861 (16) 828 (23) 798 (21) 1 001 (21) na –

– including imputed labour $/t 882 (17) 849 (23) 833 (21) 1 050 (22) na –


Area sown ha 14 (23) 25 (34) 15 (22) 11 (25) 14 (41)

Production t 487 (33) 643 (33) 460 (19) 346 (36) 358 (31)

Quantity sold t 490 (33) 637 (32) 477 (21) 344 (36) 356 (31)

Yield t/ha 34 (18) 26 (26) 31 (22) 30 (21) 26 (21)




Irrigation water per hectare ML/ha 5 (21) 5.8 (35) 5 (35) 3.4 (19) na –




TABLE C4 Selected estimates for cauliflower growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 307 – 236 – 273 – 295 – 222 –

Price $/t 693 (16) 715 (15) 885 (15) 932 (30) 814 (34)

Cash costs $/t 561 (34) 615 (23) 614 (35) 645 (32) na –



Area sown ha 10 (68) 14 (22) 8 (41) 7 (34) 8 (54)

Production t 299 (63) 389 (25) 245 (43) 166 (39) 218 (59)

Quantity sold t 299 (63) 388 (25) 244 (43) 157 (41) 209 (58)

Yield t/ha 31 (13) 28 (8) 31 (15) 24 (13) 27 (24)




Irrigation water per hectare ML/ha 5 (50) 3.9 (16) 4.5 (31) 4.1 (32) na –


TABLE C5 Selected estimates for carrot growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 248 – 229 – 305 – 274 – 171 –

Price $/t 235 (21) 288 (23) 522 (21) 455 (13) 394 (17)

Cash costs $/t 160 (14) 229 (20) 255 (12) 323 (17) na –



Area sown ha 13 (19) 11 (17) 14 (25) 23 (34) 46 (25)

Production t 808 (16) 540 (18) 718 (29) 1 256 (45) 2 591 (27)

Quantity sold t 672 (18) 553 (18) 722 (36) 1 233 (45) 2 641 (27)

Yield t/ha 64 (11) 50 (12) 51 (11) 54 (11) 56 (11)




Irrigation water per hectare ML/ha 3.8 (7) 3.4 (15) 4 (12) 5.9 (9) na –




TABLE C6 Selected estimates for onion growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 303 – 253 – 260 – 139 – 131 –

Price $/t 213 (69) 503 (20) 275 (17) 492 (67) 481 (17)

Cash costs $/t 125 (61) 331 (23) 196 (16) 299 (26) na –



Area sown ha 18 (25) 16 (14) 24 (14) 28 (40) 29 (30)

Production t 1 729 (68) 773 (15) 1 294 (15) 1 354 (37) 1 451 (30)

Quantity sold t 1 579 (74) 713 (15) 1 295 (16) 1 259 (45) 1 383 (30)

Yield t/ha 97 (66) 48 (7) 53 (7) 48 (6) 50 (7)






TABLE C7 Selected estimates for tomato growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 280 – 387 – 428 – 453 – 361 –

Price $/t 423 (28) 947 (23) 883 (56) 1 086 (188) 1 038 (53)

Cash costs $/t 289 (30) 762 (22) 377 (60) 677 (194) na –



Area sown ha 24 (25) 12 (25) 8 (40) 6 (138) 7 (53)

Production t 1 559 (33) 394 (29) 501 (61) 428 (210) 544 (63)

Quantity sold t 1 560 (33) 394 (29) 451 (64) 411 (213) 535 (63)

Yield t/ha 65 (14) 33 (37) 64 (27) 72 (80) 76 (28)




Irrigation water per hectare ML/ha 5.1 (12) 3.8 (21) 4 (12) 3.8 (64) na –




TABLE C8 Selected estimates for greenbean growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 339 – 269 – 251 – 209 – 177 –

Price $/t 1 423 (31) 1 723 (24) 1 600 (15) 1 593 (48) 1 374 –

Cash costs $/t 959 (20) 1 254 (29) 1 062 (17) 915 (47) na –

– including imputed labour $/t 998 (19) 1 320 (27) 1 107 (17) 947 (46) na –


Area sown ha 24 (50) 32 (49) 38 (31) 37 (73) 41 (49)

Production t 145 (46) 162 (39) 203 (24) 293 (52) 373 (60)

Quantity sold t 145 (46) 162 (39) 202 (24) 270 (52) 371 (60)

Yield t/ha 6 (7) 5 (14) 5 (11) 8 (43) 9 (43)




Irrigation water per hectare ML/ha 1.7 (18) 0.8 (14) 1.8 (25) 2 (23) na –


TABLE C9 Selected estimates for greenpea growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm


Realised sample no. 19 – 14 – 14 – 12 – na

No. of growers no. 268 – 150 – 147 – 91 – na

Price $/t 574 (60) 1 571 (38) 1 181 (40) 857 (198) na

Cash costs $/t na – na – na – na – na

– including imputed labour $/t na – na – na – na – na

Net cash return a $/t na – na – na – na – na

Area sown ha 11 (51) 12 (24) 13 (12) 10 (48) na

Production t 137 (372) 44 (30) 56 (15) 43 (34) na

Quantity sold t 137 (372) 44 (30) 56 (16) 43 (34) na

Yield t/ha 13 (324) 4 (17) 4 (6) 4 (16) na

Area irrigated ha 10 (56) 4 (54) 7 (23) 7 (72) na


water applied ML 21 (219) 3 (45) 9 (26) 17 (65) na

Irrigation water per hectare ML/ha 2.1 (165) 0.6 (28) 1.3 (14) 2.6 (43) na




TABLE C10 Selected estimates for pumpkin growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 402 – 482 – 469 – 344 – 285 –

Price $/t 441 (12) 420 (14) 443 (18) 416 (15) 345 (20)

Cash costs $/t 340 (56) 537 (20) 358 (28) 359 (26) na –


Net cash return a $/t 335 (45) –366 (32) 175 (20) 47 (158) na –

Area sown ha 10 (45) 8 (19) 7 (24) 9 (25) 12 (45)

Production t 193 (56) 140 (18) 128 (30) 133 (20) 237 (44)

Quantity sold t 173 (63) 157 (24) 115 (34) 122 (20) 237 (44)

Yield t/ha 19 (19) 19 (21) 18 (19) 15 (21) 21 (7)






TABLE C11 Selected estimates for potato growers, vegetable growing farm businesses, 2009–10 to 2013–14 average per farm



No. of growers no. 985 – 741 – 1 043 – 801 – 711 –

Price $/t 372 (3) 398 (4) 373 (6) 376 (5) 387 (5)

Cash costs $/t 199 (7) 210 (11) 250 (10) 233 (7) na –



Area sown ha 34 (17) 44 (10) 32 (20) 29 (14) 30 (18)

Production t 1 345 (11) 1 584 (10) 1 192 (22) 1 117 (15) 1 197 (18)

Quantity sold t 1 296 (11) 1 598 (10) 1 157 (22) 1 051 (16) 1 172 (18)

Yield t/ha 39 (9) 36 (4) 38 (7) 39 (4) 40 (5)




Irrigation water per hectare ML/ha 4.1 (13) 3 (11) 3.6 (20) 4.8 (10) na –



References

ABARES 2014a, Agricultural commodities, September quarter 2014, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.

ABARES 2014b, Australian farm survey results, 2011–12 to 2013–14, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.

ABS 2014a, Agricultural commodities, Australia, 2012–13, cat no. 71210.0, Australian Bureau of Statistics, Canberra.

ABS 2014b, Value of Agricultural Commodities Produced, Australia, 2012–13, cat. no. 7503.0, Australian Bureau of Statistics, Canberra.

ABS 2006, Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 (Revision 1.0), cat. no. 1292.0, Australian Bureau of Statistics, Canberra, available at abs.gov.au/ANZSIC.

Bardsley, P & Chambers, RL 1984, ‘Multipurpose estimation from unbalanced samples,’ Journal of the Royal Statistical Society, Series C (Applied Statistics), vol. 33, pp. 290–99.

Lehtonen, R & Pahkinen, E 2004, Practical methods for design and analysis of complex surveys, 2nd edn, John Wiley and Sons, West Sussex.

HAL 2012, Australian vegetable industry strategic investment plan 2012–2017, Horticulture Australia Limited, March.

Valle, H 2014, Trends in the Australian vegetable growing industry: 2005–06 to 2012–13, ABARES client report prepared for Horticulture Australia Limited, Canberra, June.

agriculture.gov.au/abares

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

Postal address GPO Box 858 Canberra ACT 2601

Switchboard +61 2 6272 3933

Facsimile +61 2 6272 2001

Email [email protected]

Web agriculture.gov.au/abares

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