The Department of Agriculture, Fisheries, and Forestry (DAFF) is expecting average broadacre farm incomes to significantly fall to $197,000 (US$125,000) per farm in 2023-24, due to drier conditions and lower agricultural commodity prices, especially livestock.
ABARES estimated total costs to fall 11 percent to $623,000 and total revenue to tumble 21 percent to $999,000. Farm business profit is expected to plunge 77 percent to $56,000.
Broadacre farming operations involve large-scale production of livestock or crops.
The department anticipates incomes to be well below the long-term average in some parts of northern New South Wales, southern Queensland, and the northern parts of the Western Australian cropping zone as dry conditions in these areas result in lower crop yields.
Dry conditions and declining prices of sheep, lamb, and wool are also expected to result in lower incomes in parts of southern Victoria, South Australia, Tasmania, and Western Australia.
“Livestock farms will be affected by large decreases in prices for beef cattle and sheep, with sheep farm incomes forecast to be well below average,” ABARES Executive Director Jared Greenville said.
Farmers Flag Rising Cost of Pest Control, Superannuation Tax Changes
New South Wales (NSW) Farmers Association has already called for a halt on the increase of controlling pests and weeds amid worsening dry conditions.“The frustrating thing for farmers is that we see public lands locked up and mismanaged, or we see absentee landowners fail to control pests and weeds, and it provides these breeding grounds that makes the problem worse every year,” Craig Mitchell from the NSW Farmers Conservation and Resource Management committee said.
“This puts increasing pressures on the production of food and fibre while our losses to invasive species are increasing, and that’s ultimately going to have impacts far beyond the farm gate.”
Citing ABARES data, NSW Farmers said that 85 percent of land managers spent on average of $21,950 on pest and weed species management last year, up $6000.
“We’re looking at another shocking summer ahead with hot, dry conditions already here and a huge amount of weeds drying out on the ground, while feral animals compete with livestock and native animals for food and water,” Mr. Mitchell said.
Meanwhile, the National Farmers’ Federation (NFF) reiterated its concerns on the increase in tax on Australian farms through superannuation.
The federal government plans to double the tax rate on super to 30 percent for balances over $3 million, instead of on actual profits earned by the fund.
“The taxation of unrealised gains poses a genuine challenge for farmers, many of whom may find it difficult to meet the annual tax obligations without selling their land assets. This new tax could significantly impact a farmer’s yearly retirement earnings, potentially exceeding them,” NFF CEO Tony Mahar said.
Mr. Mahar explained that farmers consider their land holdings as their primary form of retirement savings and that unlike regular employees, many farmers do not pay consistent superannuation contributions.
“While recognising the government’s efforts to address fiscal challenges, the NFF remains steadfast in its belief the legislation’s potential repercussions on farmer' livelihoods and agricultural investments must not be disregarded for a quick budget win,” he said.
