The Box

Farms are getting bigger and more profitable

Written by AuctionsPlus | Apr 3, 2022 6:00:00 AM

While there has been a reduction in the number of farm businesses over time, average farm sizes have increased according to ABARES Snapshot of Australian Agriculture.Agriculture accounts for over half of Australia’s land use and, while the number of farms has decreased over time, broadacre farm sizes have increased in size.

Accounting for only 15 per cent of the farm population, large farms contributed to 72 per cent of total farm income and accounted for 60 per cent of the total value of output.

ABARES determined size groups by farm business turnover: small (less than $250,000), medium ($250,000 to $750,000), large ($750,000 to $2million), and very-large (more than $2million).

Access to better technology, more flexible labour management and productivity, better knowledge management and diffusion of better farm management practices have all shaped the increase in farm size and output, according to the report.

Large farms have increased their share of total farm numbers from around 3 per cent to 15 per cent over the past four decades.

High-revenue farms now account for one fifth of the broadacre population but two thirds of land, income and output.

ABARES is the Australian Bureau of Agricultural and Resource Economics and Sciences, which is the research arm of the Australian Government Department of Agriculture, Water and the Environment. Photo Credit to ABARES.