Results from the annual Livestock Farm Monitor Report over 2022-2023 has been released.
In 2022-23, the Livestock Farm Monitor Project (LFMP) provided 124 Victorian sheep, and beef farmers with detailed financial and production performance information.
The objective and timely data generated through this project is relied on by industry and government decision-makers.
The project has been funded by Agriculture Victoria for more than 50 years.
Agriculture Victoria Farm Business Economist Sam Henty said more than 60% of farms in each region purchased new machinery during 2022-23.
‘Larger farms were able to reduce their costs by spreading overhead costs over more output and tended to have a higher return on assets than smaller farms.’
‘The continued rise in farmland values strengthened business equity levels but constrained return on assets as less profit was made from more valuable assets.
‘Variable and overhead costs remained historically high but at similar levels to 2021-22.
‘High fertiliser prices and very wet conditions led to a reduction in phosphorus application rates to the lowest levels recorded in a decade,’ he said.
Agriculture Victoria Farm Business Economist, Sam Henty also said the report found average earnings before interest and tax (operating profit) halved across the state.
‘After 3 years of favourable business conditions and record high farm profits, profits fell in 2022-23. Gippsland and South West farm business profits decreased to below the respective regional 10-year averages, with the South West recording the lowest result since 2015-16.
Download a copy of the report from the Agriculture Victoria website: https://agriculture.vic.gov.au/about/agriculture-in-victoria/livestock-farm-monitor-project
