Australian sugarcane farm businesses: financial performance, 2013-14

Overview \r\n In 2014 ABARES was commissioned by the Queensland Department of Agriculture and Fisheries (QDAF) and Sugar Research Australia (SRA) to conduct a survey of Australian sugarcane growing farm businesses. The survey conducted in early 2015 collected financial, physical and management information from sugarcane growers that had more than 5 hectares planted to sugarcane and with an estimated value of agricultural operations of $30 000 or more. \r\n\r\n Key Issues \r\n• Farm cash income, defined as total farm cash receipts less total farm cash costs, averaged $89 700 for sugarcane farm businesses in 2013-14. Farm cash income ranged from an average of just $14 900 for farm businesses with less than 50 hectares planted to sugar cane to an average of $384 200 for those with greater than 250 hectares of sugar cane. \r\n• In 2013-14 average farm cash income was highest in Far North Queensland, averaging $120 300 a farm, and lowest in New South Wales, where a higher proportion of smaller farms are located, averaging $38 100 a farm. \r\n• Average farm cash income is estimated to have declined from $89 700 in 2013-14 to $70 000 in 2014-15, as a result of lower sugar prices and increases in farm cash costs. \r\n• In 2014-15, farm cash incomes declined more in southern Queensland regions because of dry seasonal conditions and in the area around Cairns as a result of Cyclone Ita in 2014. In contrast, farm cash incomes are estimated to have increased in New South Wales and the Burdekin region as a result of increased sugarcane production. \r\n