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ABARES Financial Performance of Dairy Farms 2011-12 to 2013-14

ABARES Financial Performance of Dairy Farms 2011-12 to 2013-14

Categories: Dairy, Commodities

Summary of key issues:

  • In 2013-14, average farm cash incomes are estimated to have rebounded strongly from the lows of the previous year.
  • Over the 10 years to 2013-14 the average rate of return to capital (excluding capital appreciation for Australian dairy farms was 2.1 per cent.
  • The average rate of return (excluding capital appreciation) declined in 2012-13 to an estimated 0.9 per cent as farm incomes fell, then increased to 3.1 per cent in 2013-14.
  • In 2012-13 average farm debt rose by around 9 per cent as a result of increased working capital debt that was largely used to purchase fodder because of dry seasonal conditions.
  • Higher farm incomes and improved seasonal conditions in 2013-14 meant there was reduced need for working capital and many farmers reduced this component of their debt.



Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879