Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016

Research by the Australian Bureau of Agriculturaland Resource Economics and Sciences

About my regionJune 2016

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ABARES 2016, Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016. About my region, Canberra, June. CC BY 3.0.

ABARES project 43009

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 is available at agriculture.gov.au/abares/publications.

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The Australian Government acting through the Department of Agriculture and Water Resources, 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 and Water Resources, 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 on information or data in this publication to the maximum extent permitted by law.

Acknowledgements

ABARES relies on the voluntary cooperation of farmers participating in the annual Australian Agricultural and Grazing Industries Survey to provide data used in the preparation of this report. Without their help, these surveys would not be possible. ABARES farm survey staff collected most of the information presented in this report through on-farm interviews with farmers.

This regional profile was updated by Clay Mifsud, Aruni Weragoda, Jeremy van Dijk, Peter Martin, Milly Lubulwa, Dale Ashton, Mark Oliver, Beau Hug, Robert Curtotti, Jacob Savage, Peter Lock, Geoff Dunn, Lucy Randall and Evert Bleys.

Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Contents1 Regional overview.................................................................................................................................. 1

Employment.............................................................................................................................................. 22 Agricultural sector.................................................................................................................................. 3

Value of agricultural production......................................................................................................3Number and type of farms.................................................................................................................. 6Farm financial performance—New South Wales......................................................................8Performance of irrigated agriculture—Riverina region, New South Wales..............15

3 Forestry Sector...................................................................................................................................... 17

References........................................................................................................................................................... 19

TablesTable 1 Value of agricultural production, Riverina region, 2014–15.........................................4

Table 2 Number of farms, by industry classification, Riverina region, 2013–14...................6

Table 3 Financial performance, New South Wales broadacre industries, 2013–14 to 2015–16, average per farm.................................................................................................................9

Table 4 Farm cash income of New South Wales broadacre farms, by region, 2014–15 to 2015–16, average per farm..............................................................................................................10

Table 5 Financial performance, New South Wales dairy industries, 2013–14 to 2015–16, average per farm...................................................................................................................................13

Table 6 Physical and financial performance, New South Wales vegetable industry farms, 2012–13 to 2014–15, average per farm.....................................................................................14

Table 7 Financial performance, rice farms, Riverina region, 2012–13 to 2014–15, average per farm...................................................................................................................................16

FiguresFigure 1 Employment profile, Riverina region, November 2015..................................................2

Figure 2 Value of agricultural production, Riverina region, 2014–15........................................3

Figure 3 Distribution of farms by estimated value of agricultural operations, Riverina region, 2013–14....................................................................................................................................... 7

Figure 4 Real farm cash income, broadacre industries, 2001–02 to 2015–16, average per farm............................................................................................................................................................... 9

Figure 5 Real farm cash income, beef industry, 2001–02 to 2015–16, average per farm11

Figure 6 Real farm cash income, sheep industry, 2001–02 to 2015–16, average per farm....................................................................................................................................................................... 11

Figure 7 Real farm cash income, grains industry, 2001–02 to 2015–16, average per farm....................................................................................................................................................................... 12

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Figure 8 Real farm cash income, dairy industry, 2001–02 to 2015–16, average per farm....................................................................................................................................................................... 13

Figure 9 Real farm cash income, vegetable industry, 2005–06 to 2014–15, average per farm............................................................................................................................................................. 14

Figure 10 Financial performance, horticulture farms, Riverina region, 2012–13 to 2014–15, average per farm...........................................................................................................................15

Figure 11 Real farm cash income, rice farms, Riverina region, 2006–07 to 2014–15, average per farm...................................................................................................................................16

Figure 12 Area of native forest, by tenure, Riverina region..........................................................17

MapsMap 1 Broad land use in the Riverina region.........................................................................................1

Map 2 ABARES Australian broadacre zones and regions...............................................................10

BoxesBox 1 Definitions................................................................................................................................................. 8

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

1 Regional overviewThe Riverina region of New South Wales is located in the south of the state, extending from the Snowy Mountains north west through the Murrumbidgee River catchment area (Map 1). The region includes the major regional towns of Wagga Wagga and Griffith, and the local government areas of Coolamon, Cootamundra, Griffith, Gundagai, Junee, Leeton, Lockhart, Murrumbidgee, Narrandera, Temora, Tumbarumba, Tumut Shire and Wagga Wagga, as well as parts of Bland, Carrathool, Greater Hume Shire, Jerilderie, Urana and Yass Valley local government areas. The region covers a total area of around 56 987 square kilometres or 7.12 per cent of New South Wales and is home to approximately 150 100 people (ABS 2011).

Agricultural land in the Riverina region occupies 44 627 square kilometres, or 78 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 9 123 square kilometres, or 16 per cent of the region. The most common land use by area is grazing modified pastures, which occupies 22 091 square kilometres or 39 per cent of the Riverina region.

Map 1 Broad land use in the Riverina region

Source: Catchment scale land use of Australia — update March 2015 (ABARES, 2015)

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

EmploymentAustralian Bureau of Statistics (ABS) data from the November 2015 Labour Force Survey indicate that around 86 300 people were employed in the Riverina region. The Riverina accounts for 2.4 per cent of total employment in New South Wales and 23 per cent of all people employed in the New South Wales Agriculture, Forestry and Fishing sector.

Agriculture, Forestry and Fishing was the largest employment sector with 18 600 people, followed by Health Care and Social Assistance with 9 600 people and Manufacturing with 8 400 people (Figure 1). Other important employment sectors in the region were Retail Trade, Education and Training, and Accommodation and Food Services.

Figure 1 Employment profile, Riverina region, November 2015

Note: Annual average of the preceding 4 quartersSource: Australian Bureau of Statistics, cat. no. 6291.0, Labour Force, Australia (ABS, 2015)

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

2 Agricultural sectorValue of agricultural productionIn 2014-15, the gross value of agricultural production (GVAP) in the Riverina region was $2.16 billion, which was 18 per cent of the total gross value of agricultural production in New South Wales ($12.125 billion). This is the most recent year for which ABS data are available.

The Riverina region has a diverse agricultural sector. The most important commodities in the Riverina region (Figure 2; Table 1) based on the gross value of agricultural production were wheat ($446.04 million), followed by cattle and calves ($250.89 million) and poultry ($155.35 million). These commodities together contributed 39 per cent of the total value of agricultural production in the region. Additionally, in 2014-15 the Riverina region accounted for 52 per cent ($140.14 million) of the total value of the state's rice production.

Figure 2 Value of agricultural production, Riverina region, 2014–15

Note: The graph shows aggregated values for published data. a the "Other commodities" classification includes totals for commodities not shown elsewhere plus total for the unpublished values. Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia (ABS, 2016b)

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Table 1 Value of agricultural production, Riverina region, 2014–15

Agricultural Commodity Value of Production ($)

Wheat 446 037 683

Oats 16 740 558

Barley 105 476 388

Sorghum 1 712 344

Maize 30 843 425

Rice 140 140 949

Triticale 3 208 406

Other cereals 1 078 303

Cotton 113 934 211

Other pulses 25 425 594

Canola 138 580 578

Other oilseeds 4 577 502

Other broadacre crops 1 180 825

Total broadacre crops 1 028 936 767

Hay (cut) - lucerne 11 984 786

Hay (cut) -pasture 4 184 486

Hay (cut) - cereal 19 797 476

Hay (cut) - other 2 968 814

Total hay and Silage 38 935 562

Nurseries 6 358 329

Turf 3 253 799

Mandarins 4 078 234

Oranges 100 030 658

Other citrus fruits 980 921

Apples 60 154 463

Pears 2 857

Cherries 3 702 076

Nectarines 25 742

Peaches 704 113

Other stone fruit 2 471 054

Other orchard fruits 2 282 539

Other fruits 3 867 714

Almonds 24 268 812

Other nuts 13 467 330

Total fruit and nuts 216 036 514

Grapes - wine 101 813 959

Grapes - other 214 524

Total grapes 102 028 483

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Table 1 Value of agricultural production, Riverina region, 2014–15 (continued)

Agricultural Commodity Value of Production ($)

Capsicums 537 119

Carrots 3 944 907

Melons 31 529 171

Onions 2 829 805

Potatoes 20 061 898

Tomatoes - processing 30 175

Tomatoes - to market 4 186 164

Other vegetables 20 626 166

Total vegetables 83 745 405

Total crops a 1 479 294 859

Wool 121 145 794

Milk 25 542 771

Eggs 28 930

Sheep and lambs 111 740 203

Cattle and calves 250 887 750

Pigs 13 782 660

Poultry 155 349 721

Other livestock for meat 306 843

Total livestock for meat 532 067 177

Total livestock products 146 717 494

Total agriculture b 2 158 079 530Note: Confidential data (and their aggregations) are included in tables as null values. Where possible unpublished commodity values are included in totals.a Total crops is the aggregation of: total broadacre crops; total hay and silage; total grapes; total nurseries, cut flowers and turf; total fruit and nuts; and total vegetables.b Total agriculture is the aggregation of: total crops; total livestock products; and total livestock for meat.Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia (ABS, 2016b)

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Number and type of farmsABS data indicate that in 2013–14 there were 3 972 farms in the Riverina region with an estimated value of agricultural operations of more than $5 000 (Table 2). The region contains 11 per cent of all farm businesses in New South Wales.

Table 2 Number of farms, by industry classification, Riverina region, 2013–14

Industry classification

Riverina region New South Wales

Number of farms

% of region

Number of farms

Contribution of regionto state total

%

Beef Cattle Farming (Specialised) 799 20.1 12 722 6.3

Grain Growing 720 18.1 3 078 23.4

Grain-Sheep or Grain-Beef Cattle Farming 499 12.6 2 850 17.5

Sheep Farming (Specialised) 422 10.6 4 811 8.8

Grape Growing 290 7.3 690 42.0

Sheep-Beef Cattle Farming 259 6.5 3 142 8.2

Citrus Fruit Growing 256 6.4 436 58.7

Rice Growing 171 4.3 394 43.5

Other Crop Growing nec 150 3.8 1 260 11.9

Horse Farming 92 2.3 1 549 5.9

Dairy Cattle Farming 83 2.1 1 059 7.8

Total agriculture 3 972 100 36 159 11.0Note: Estimated value of agricultural operations greater than $5 000. Industries contributing less than 1 per cent to the region total are not shown, but are included in the total. nec “not elsewhere classified”.Source: Australian Bureau of Statistics

Farms in Table 2 are classified according to the activities that generate most of their value of production. Beef cattle farms (799) were the most common, accounting for 20 per cent of all farms in the Riverina region, and 6 per cent of all beef farms in Australia.

Estimated value of agricultural operations (EVAO) is a measure of the value of production from farms and a measure of their business size. Around 24 per cent of farms in the Riverina region had an EVAO of less than $50 000 (Figure 3). These farms accounted for only 1 per cent of the total value of agricultural operations in 2013–14. In comparison, 22 per cent of farms in the region had an EVAO of more than $500 000 and accounted for an estimated 71 per cent of the total value of agricultural operations in the Riverina region in 2013–14.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Figure 3 Distribution of farms by estimated value of agricultural operations, Riverina region, 2013–14

Source: Australian Bureau of Statistics, Value of Agricultural Commodities Produced, Australia, Industry classification, 2014–15 (ABS 2016c)

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Farm financial performance—New South WalesEach year, ABARES interviews Australian broadacre, dairy and vegetable producers as part of its annual survey program. Broadacre industries covered in ABARES surveys include the grains, grains-livestock, sheep, beef and sheep-beef industries. The information collected is a basis for analysing the current financial position of farms in these industries and expected changes in the short term. This paper uses data from the ABARES Australian agricultural and grazing industries survey (AAGIS), Australian dairy industry survey (ADIS), and Australian vegetable growing industry survey to report estimates of financial performance indicators (Box 1) for broadacre, dairy and vegetable farms in New South Wales.

Box 1 DefinitionsMajor financial performance indicators Total cash receipts: total revenues received by the business during the financial year. Total cash costs: payments made by the business for materials and services and for permanent and casual hired

labour (excluding owner manager, partner and family labour). Farm cash income: total cash receipts – total cash costs Farm business profit: farm cash income + changes in trading stocks – depreciation – imputed labour costs Profit at full equity: return produced by all the resources used in the business, farm business profit + rent +

interest + finance lease payments – depreciation on leased items Rate of return: return to all capital used, profit at full equity * 100 / total opening capital Equity ratio: Farm capital minus farm debt expressed as a percentage of farm capital

Industry types Grains: farms mainly engaged in producing broadacre crops such as wheat, coarse grains, oilseeds and pulses, and

including farms running sheep and/or beef cattle in conjunction with substantial broadacre crop activity. Sheep: farms mainly engaged in running sheep. Beef: farms mainly engaged in running beef cattle. Dairy: farms mainly engaged in milk production. Vegetable: farms mainly engaged in growing vegetables.

Performance of broadacre farms—New South WalesAverage farm cash income of New South Wales broadacre farms increased in 2014–15 by 19 per cent to $131 600 (Figure 4; Table 3). This increase resulted from increased cash receipts from the sale of beef cattle, sheep, wool and pulses and a decrease in expenditure on fodder and fuel.

Farm cash income of broadacre farms in New South Wales is projected to increase further in 2015–16 to an average of $176 000 a farm. This would be more than double the 10–year average to 2014–15 of $78 000 and would be the highest average farm cash income recorded in New South Wales in the past 20 years. Average total cash receipts of broadacre farms in New South Wales are expected to increase by 14 per cent in 2015–16 as a result of improved seasonal conditions leading to increased winter crop production in northern New South Wales as well as higher prices for beef cattle, lambs and wool.

Total cash costs are expected to increase by 5 per cent in 2015–16 from 2014–15 despite a decline in expenditure on livestock purchases. Increased costs reflect greater expenditure on repairs and maintenance by beef cattle producing farms as well as expenditure on fertiliser, fodder and crop and pasture chemicals.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Figure 4 Real farm cash income, broadacre industries, 2001–02 to 2015–16, average per farm

Note: y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Table 3 Financial performance, New South Wales broadacre industries, 2013–14 to 2015–16, average per farm

Performance Indicator units 2013-14 2014-15p RSE 2015-16yTotal cash receipts $ 403 270 440 200 (4) 500 000

Total cash costs $ 292 700 308 600 (4) 324 000Farm cash income $ 110 570 131 600 (6) 176 000

Farms with negative farm cash income %23 13 (20

)14

Farm business profit $10 140 22 300 (33

)78 000

Profit at full equity a $44 850 55 600 (14

)112 000

Farm capital at 30 June b $ 3 567 370 3 824 400 (5) naFarm debt at 30 June c $ 456 040 474 400 (9) 504 000

Equity ratio c d % 87 87 (1) na

Rate of return a e %1.3 1.5 (12

)2.9

Off-farm income c f $35 570 41 300 (10

)na

Source: ABARES Australian Agricultural and Grazing Industries Survey RSE Standard errors expressed as a percentage of the estimate provided. p Preliminary estimate. y Provisional estimate. a Excludes capital appreciation. b Excludes leased plant and equipment. c Average per responding farm. d Equity expressed as a percentage of farm capital. e Rate of return to farm capital at 1 July. f Off-farm income of owner manager and spouse. na Not available.

Average farm cash incomes are projected to increase in all regions of New South Wales in 2015–16, driven by increased receipts from beef cattle, crops, lambs and wool resulting from increased prices and higher crop production following improved seasonal conditions (Table 4). Relatively low farm cash incomes were recorded in the Far West and the North West Slopes and Plains in 2014–15, with most farms subject to dry seasonal conditions (see Map 2).

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Table 4 Farm cash income of New South Wales broadacre farms, by region, 2014–15 to 2015–16, average per farm

Region 2014–15p $

RSE 2015–16y $

111: NSW Far West 154 000 (19) 222 000121: NSW North West Slopes and Plains 100 000 (22) 213 000122: NSW Central West 171 000 (9) 174 000123: NSW Riverina 208 000 (9) 246 000131: NSW Tablelands 73 000 (21) 116 000132: NSW Coastal 28 000 (25) 46 000

Source: ABARES Australian Agricultural and Grazing Industries Survey RSE Standard errors expressed as a percentage of the estimate provided. p Preliminary estimate. y Provisional estimate.

Map 2 ABARES Australian broadacre zones and regions

Note: Each region is identified by a unique code of three digits. The first digit identifies the state or territory, the second digit identifies the zone and the third digit identifies the region.Source: ABARES

Performance of beef industry farms—New South WalesAverage farm cash incomes of New South Wales beef industry farms increased considerably from $39 000 to $69 000 a farm in 2014–15 as a result of higher average prices received for beef cattle and increased cattle turn–off (Figure 5).

In 2015–16, farm cash income of New South Wales beef industry farms is projected to increase further to average $85 000 a farm. This would be around double the 10–year average to 2014–15 of $37 000 and the highest average farm cash income of beef industry farms since 2004–05. Further growth in beef cattle prices is projected to result in an increase in beef cattle receipts and more than offset increases in total farm cash costs.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Figure 5 Real farm cash income, beef industry, 2001–02 to 2015–16, average per farm

Note: y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of sheep industry farms—New South WalesIn 2014–15, farm cash income of New South Wales sheep industry farms increased to average $106 000 a farm as a result of an increase in sheep and lamb prices combined with slightly higher turn–off and an increase in the quantity of wool sold (Figure 5).

In 2015–16, farm cash income of New South Wales sheep industry farms is expected to increase to an average of $123 000 a farm, around 77 per cent above the 10–year average to 2014–15. Total cash receipts are projected to increase as a result of higher prices for sheep and wool combined with an increase in sheep turn–off. A projected increase in expenditure on repairs and maintenance is expected to more than offset the decline in expenditure on sheep purchases, fodder, interest payments and fuel, resulting in a small increase in total cash costs.

Figure 6 Real farm cash income, sheep industry, 2001–02 to 2015–16, average per farm

Note: y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Performance of grains industry farms—New South WalesAverage cash income of New South Wales grains industry farms remained mostly unchanged, averaging $212 000 in 2014–15 (Figure 7). Crop receipts decreased in some regions as a result of dry seasonal conditions causing reduced production of both winter and summer crops particularly in northern New South Wales. For mixed crop–livestock farms, these lower crop receipts were partly offset by increased receipts from sheep, lamb and beef cattle. Total cash costs decreased slightly reflecting reduced expenditure on fuel and interest paid.

In 2015–16, farm cash income is projected to increase for New South Wales grains industry farms to an average of $292 000 a farm. This would be more than double the 10–year average to 2014–15 of $116 000 and mainly reflects increased winter crop production in northern New South Wales, together with higher prices for pulses.

Figure 7 Real farm cash income, grains industry, 2001–02 to 2015–16, average per farm

Note: y Provisional estimate.Source: ABARES Australian Agricultural and Grazing Industries Survey

Performance of dairy industry farms—New South WalesIn 2014–15 average farm cash incomes of New South Wales dairy farms increased significantly from $118 000 to $180 000 as a result of increased milk production and increased milk prices (Table 5).

In 2015–16 farm cash income of New South Wales dairy industry farms is projected to decline to an average of $159 000 a farm (Figure 8). This is still around 21 per cent above the 10–year average to 2014–15. The decline in farm cash income is a result of lower milk prices in southern regions, increased expenditure on purchased fodder and a small reduction in milk production. The reduction in farm cash income in New South Wales is expected to be relatively smaller than in other southern states because of milk prices being maintained in northern New South Wales.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Figure 8 Real farm cash income, dairy industry, 2001–02 to 2015–16, average per farm

Note: y Provisional estimate.Source: ABARES Australian Dairy Industry Survey

Table 5 Financial performance, New South Wales dairy industries, 2013–14 to 2015–16, average per farm

Performance Indicator units 2013-14 2014-15p RSE 2015-16yTotal cash receipts $ 803 880 928 900 (3) 919 000Total cash costs $ 685 570 749 300 (3) 761 000

Farm cash income $ 118 310 179 700 (11) 159 000Farms with negative farm cash income % 16 15 (49) 19

Farm business profit $ 3 920 80 100 (26) 33 000Profit at full equity a $ 66 050 148 400 (13) 96 000

Farm capital at 30 June b $ 4 107 930 4 745 400 (8) naFarm debt at 30 June c $ 807 920 890 500 (11) na

Equity ratio c d % 80 81 (3) naRate of return a e % 1.7 3.3 (13) 2.0

Off-farm income c f $ 21 350 16 400 (21) naSource: ABARES Australian Dairy Industry Survey RSE Standard errors expressed as a percentage of the estimate provided. p Preliminary estimate. y Provisional estimate. a Excludes capital appreciation. b Excludes leased plant and equipment. c Average per responding farm. d Equity expressed as a percentage of farm capital. e Rate of return to farm capital at 1 July. f Off–farm income of owner manager and spouse. na Not available

Performance of vegetable industry farms—New South WalesThere were 574 vegetable growing farms in New South Wales in 2014–15, accounting for around 22 per cent of Australian vegetable growing farms. Most of those vegetable farms in New South Wales were located in Greater Sydney, the Murrumbidgee Irrigation Area and the Far North Coast.

Farm cash income of vegetable growing farms in New South Wales is estimated to have declined in 2013–14 to an average of $51 000 a farm (Table 6). 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 green peas. Increased vegetable production offset lower vegetable prices, thus increasing vegetable cash receipts.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Table 6 Physical and financial performance, New South Wales vegetable industry farms, 2012–13 to 2014–15, average per farm

Selected estimates units 2012-13 RSE 2013-14p RSE 2014-15y RSEVegetable cash receipts $ 213 190 (15) 265 600 (33) 224 000 (21)Area sown with vegetables ha 14 (21) 23 (10) 21 (40)Quantity vegetables produced t 374 (40) 525 (13) 558 (40)Farm cash income $ 62 900 (31) 51 200 (21) 73 000 (38)

Source: ABARES Australian Vegetable Growing Farms Survey RSE Standard errors expressed as a percentage of the estimate provided. p Preliminary estimate. y Provisional estimate.

Farm cash income is estimated to have increased in 2014–15 to an average of $73 000 a farm, 21 per cent lower than the 10-year average farm cash income to 2014–15 (Figure 9). Vegetable production increased because yields for most vegetables increased, despite the decline in average area planted. On average, farms shifted production towards cabbage, pumpkin and tomato and away from carrot, onion and cauliflower. Increased vegetable production did not offset lower vegetable prices, reducing vegetable cash receipts. However, estimated average total cash costs declined more than estimated average total cash receipts leading to an increase in farm cash income.

Figure 9 Real farm cash income, vegetable industry, 2005–06 to 2014–15, average per farm

Note: y Provisional estimate.Source: ABARES Australian Vegetable Growing Farms Survey

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Performance of irrigated agriculture—Riverina region, New South Wales

HorticultureAverage farm cash income of irrigated horticulture farms in the Riverina region of New South Wales was estimated to have been $77 066 in 2014–15, 37 per cent higher than 2013–14 (Figure 10). Incomes rose because of higher cash receipts, mainly from citrus, and lower total cash costs. In 2014–15 the average rate of return (excluding capital appreciation) was estimated to have been 1.1 per cent, compared with an average of 0.6 per cent over the period 2006–07 to 2014–15.

Figure 10 Financial performance, horticulture farms, Riverina region, 2012–13 to 2014–15, average per farm

Source: ABARES survey of irrigation farms in the Murray-Darling Basin

RiceAverage farm cash income of rice farms in the Riverina region was estimated to have been $85 494 in 2014–15, 43 per cent lower than 2013–14 (Table 7; Figure 11). Incomes fell because of lower receipts for rice, while total cash costs fell by around 0.4 per cent. In 2014–15 the average rate of return (excluding capital appreciation) was estimated to have been 1.4 per cent, compared with an average of 1.2 per cent over the period 2006–07 to 2014–15.

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

Table 7 Financial performance, rice farms, Riverina region, 2012–13 to 2014–15, average per farm

Selected estimates Units 2013-13 2013-14 2014-15 y

Total cash receipts $ 731 822 834 308 779 020

Total cash costs $ 585 740 623 914 612 007

Farm cash income $ 146 082 210 394 167 013

Farm business profits $ 4 117 88 453 37 191

Rate of return a % 1.9 2.9 1.9

Source: ABARES survey of irrigation farms in the Murray-Darling Basin Nominal $ a Excludes capital appreciation y Provisional estimate

Figure 11 Real farm cash income, rice farms, Riverina region, 2006–07 to 2014–15, average per farm

Source: ABARES survey of irrigation farms in the Murray-Darling Basin

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Agriculture, Fisheries and Forestry in the Riverina region of New South Wales, 2016 ABARES

3 Forestry SectorIn 2010–11, the most recent year for which data are available, the total plantation area in the Riverina region was approximately 95 900 hectares, comprised almost completely of softwood plantations. The main softwood species planted is radiata pine (Pinus radiata).

In 2011, there were approximately 1.1 million hectares of native forests in the Riverina region, comprised mainly of Eucalypt medium open (540 200 hectares), Eucalypt medium woodland (206 000 hectares), Eucalypt mallee woodland (116 400 hectares) and Callitris (115 600 hectares) forest types. Approximately 445 600 hectares of native forests are in nature conservation reserves, 334 600 hectares are privately owned, 189 500 hectares are leasehold forest, and 148 700 hectares are multiple-use public forest available for timber production (Figure 12). The main native forest industry is in the south east of the region. Major timber processing facilities are located at Tumut, Tumbarumba and Gilmore.

Figure 12 Area of native forest, by tenure, Riverina region

Source: ABARES Australia's State of the Forests Report 2013

In 2013–14, the total plantation area in New South Wales was approximately 390 000 hectares, comprised of approximately 90 600 hectares of hardwood plantations, 296 700 hectares of softwood plantations and 2 700 hectares of other plantations. The main hardwood species planted are Dunn’s white gum (Eucalyptus dunnii), blackbutt (Eucalyptus pilularis), flooded gum (Eucalyptus grandis) and Sydney blue gum (Eucalyptus saligna). The main softwood species planted are radiata pine (Pinus radiata), slash pine (Pinus elliottii) and Caribbean pine (Pinus caribaea).

In 2014–15, the volume of native hardwood logs harvested was 924 000 cubic metres valued at $115 million. The volume of plantation hardwood logs harvested was 57 000 cubic metres

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