Positive outlook for WA farmers

Western Australian farmers benefited from low interest rates, good crop yields and timely strength in commodity prices in the most recent financial year, according to the Planfarm Bankwest Benchmarks 2013-14.

State winter crop production was record setting, the report said, at more than 17 million tonnes, whilst yields of wheat, barley, canola and lupins were above the 10 year average.

Strong cash surpluses and debt reduction boosted farm business equity from 77 to 79 per cent, whilst the top quarter of businesses showed profits nearly double the industry average.

Returns on capital overall were 8.2 per cent, well above the six year average of 4 per cent.

“The 2013-14 season has broadly been one of the best years WA broadacre agriculture has experienced in many years, and it’s great to see such positive results across the State,” said Minister for Agriculture and Food Ken Baston.

“Some impressive production from good seasonal conditions as well as favourable pricing has made it, overall, a very strong year and an incredible contribution to the Australian agriculture industry”.

Planfarm consultant Graeme McConnell said there was an overall positive trend across WA.

“A great outcome given the condition of the crop in mid-July,” he added.

“Production is at the core of all good profit results and, in 2013, most regions in the State achieved solid yields- the exception being some of the low rainfall areas in the east and north eastern regions.”