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1301.0 - Year Book Australia, 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2003   
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Contents >> Agriculture >> Financial statistics of farm businesses

Estimates of selected financial aggregates of farm businesses are shown in tables and graphs 16.14-16.20. The estimates have been derived from the Agricultural Finance Survey, conducted annually from 1986-87 to 1999-2000.


16.14 FARM BUSINESSES, Selected financial aggregates

1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
$m
$m
$m
$m
$m
$m

Sales from crops
9,804.2
13,159.6
13,581.2
13,493.1
13,564.3
13,110.8
Sales from livestock
6,279.1
6,339.7
5,964.7
5,922.0
6,373.4
7,300.9
Sales from livestock products
5,596.3
4,975.1
5,403.3
5,556.5
4,986.5
5,143.7
Turnover
23,516.3
26,724.9
27,122.3
27,300.1
27,606.6
28,525.5
Purchases and selected expenses
13,517.0
14,948.6
15,692.3
15,472.4
15,908.7
16,642.2
Value added(a)
9,768.1
11,185.3
10,797.4
12,034.4
12,181.4
12,817.1
Adjusted value added(b)
8,234.3
9,552.5
9,103.2
10,145.0
10,191.0
10,731.2
Gross operating surplus(a)
6,006.0
7,176.6
6,588.3
7,608.1
7,359.1
7,961.5
Interest paid
1,508.9
1,666.7
1,719.9
1,595.1
1,645.3
1,866.3
Cash operating surplus(c)
4,835.7
6,429.3
5,906.3
6,091.7
5,529.1
5,587.2
Net capital expenditure
2,090.8
2,307.9
2,480.7
2,624.7
2,573.1
2,197.1
Gross indebtedness
18,267.7
19,592.7
20,464.2
21,630.8
24,295.4
26,195.4

(a) Includes an estimate for the increase (or decrease) in the value of livestock.
(b) The estimate of value added less the estimates of rates and taxes, insurance payments and other expenses.
(c) Excludes an estimate for the increase (or decrease) in the value of livestock.

Source: Agriculture, Australia (7113.0).


16.15 FARM BUSINESSES, Selected financial aggregates - 1999-2000

NSW(a)
Vic.
Qld
SA
WA
Tas.
Aust.(b)
$m
$m
$m
$m
$m
$m
$m

Sales from crops
4,041.1
2,149.8
3,270.5
1,432.4
1,960.8
191.7
13,110.8
Sales from livestock
2,171.9
1,131.0
2,449.6
595.0
627.8
180.6
7,300.9
Sales from livestock products
1,441.4
1,975.7
517.0
386.3
619.9
201.7
5,143.7
Turnover
8,460.6
5,929.7
6,899.8
2,765.2
3,557.4
675.1
28,525.5
Purchases and selected expenses
5,014.0
3,278.5
3,967.3
1,579.4
2.305.9
372.1
16,642.2
Value added(c)
3,848.9
2,791.0
3,110.4
1,330.4
1,308.6
333.3
12,817.1
Adjusted value added(d)
3,171.0
2,389.8
2,677.0
1,098.0
1,029.5
287.2
10,731.2
Gross operating surplus(c)
2,383.7
1,737.0
1,953.7
847.6
785.8
203.4
7,961.5
Interest paid
553.0
336.4
431.1
225.0
274.1
39.3
1,866.3
Cash operating surplus(e)
1,548.3
1,309.1
1,509.1
512.6
505.5
140.1
5,587.2
Net capital expenditure
582.7
396.5
539.9
255.6
353.2
52.0
2,197.1
Gross indebtedness
7,499.7
4,341.8
6,422.9
3,093.2
4,029.0
610.0
26,195.4

(a) Includes ACT.
(b) Includes NT.
(c) Includes an estimate for the increase (or decrease) in the value of livestock.
(d) The estimate of value added less the estimates of rates and taxes, insurance payments and other expenses.
(e) Excludes an estimate for the increase (or decrease) in the value of livestock.

Source: Agriculture, Australia, 1999-2000 (7113.0).


Turnover

Turnover is the sum of gross proceeds from the sales of crops, livestock, livestock products and other miscellaneous revenue, and is a good guide to the level of farm business activity. The average turnover per farm business increased by 2% to $275,000 during 1999-2000 and was due to an increase in total turnover, since the estimated number of farm businesses had increased for the first time in several years (table 16.16).

In 1999-2000, 24,000 or 23% of Australian farm businesses had a turnover of $300,000 or more, and contributed 66% of the total turnover of all Australian farms. Their average turnover was $779,000 and the average cash operating surplus (a measure of profitability) was $153,000. The farm business profit margin (the ratio of cash operating surplus to turnover) for these businesses was 20%.

At the other end of the scale, 19,000 farms (18%) had a turnover of less than $50,000. These farm businesses contributed only 2% of the total turnover, at an average of $33,000. These farms had an estimated average cash operating surplus of only $26 per farm, which equated to a farm business profit margin of 0.1%.

In 1999-2000 the overall farm business profit margin was 20%, which was the same as for 1998-99 (graph 16.17).


16.16 FARM BUSINESSES, By size of turnover

Number of farm businesses
Total turnover


1996-97
1997-98
1998-99
1999-2000
1996-97
1997-98
1998-99
1999-2000
’000
’000
’000
’000
$m
$m
$m
$m

Less than $50,000
20.4
22.5
20.0
19.2
618.6
620.9
607.2
625.1
$50,000-$99,999
21.4
20.2
18.7
18.7
1,609.0
1,562.6
1,440.5
1,488.4
$100,000-$149,999
13.8
13.3
15.0
16.1
1,787.3
1,666.2
1,887.2
1,944.4
$150,000-$199,999
12.0
11.6
11.2
11.7
2,170.9
2,064.9
1,993.9
2,138.9
$200,000-$249,999
9.7
6.7
8.0
8.3
2,184.8
1,514.8
1,830.6
1,886.5
$250,000-$299,999
6.0
5.0
5.3
5.5
1,699.8
1,398.2
1,470.9
1,528.5
$300,000 and over
22.9
25.0
24.2
24.3
17,051.9
18,472.5
18,376.4
18,913.8
Total
106.1
104.3
102.5
103.8
27,122.3
27,300.1
27,606.6
28,525.5

Source: Agriculture, Australia (7113.0).


Graph - 16.17 farm businesses, profit margins(a)


Gross Indebtedness

Australian farm businesses owed a total of $26.2b at 30 June 2000 (table 16.18), an 8% increase on the total owing at end June 1999. The aggregate debt has risen steadily from $11.5b in 1986-87 when the current series of agricultural finance surveys began. There was, however, a wide range of debt levels among individual farm businesses, with a third of all farm businesses having a debt of less than $22,000 (with 20% reporting no debt), a third owing between $22,000 and $200,000 and a third owing more than $200,000. Overall, the median debt per farm business was $87,000 at 30 June 2000. The total interest bill for Australian farm businesses, at $1.9b, was 13% higher than in 1998-99.

Graph 16.19 shows that the average debt to asset ratio for agricultural businesses has continued its slow downward trend of recent years. Graph 16.20 shows a decrease in the average interest coverage of agricultural businesses, from 4.4 times in 1998-99 to 4.0 times in 1999-2000. This reflects the impact of a greater increase in interest paid compared to cash operating surplus.


16.18 FARM BUSINESSES, Aggregate and mean gross indebtedness

Aggregate
Average per farm business
30 June
$m
$

1995
18,267.7
170,266
1996
19,592.7
180,723
1997
20,464.2
192,815
1998
21,630.8
207,456
1999
24,295.4
237,012
2000
26,195.4
252,327

Source: Agriculture, Australia (7113.0).


Graph - 16.19 farm businesses, average debt to asset ratio(a)


Graph - 16.20 farm businesses, average interest coverage(a)


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