The findings are contained in the ABARE report, Wine grape growing farms in the Riverland, South Australia: financial performance of farms, 2005-06, released today by Karen Schneider, ABARE's Acting Executive Director. The report presents results from ABARE's survey of 60 wine grape growers in the Riverland region covering the
2005-06 growing season.

Total cash receipts for wine grape growing farms in the Riverland region averaged $174 700 in 2005-06. On average, wine grape receipts accounted for around 56 per cent of all farm receipts. Large farms (more than 20 hectares of grape vines) had total cash receipts of $451 400, middle size farms (10–20 hectares of vine grapes) $158 700 and small farms (less than 10 hectares of vine grapes) $49 800.

Large, medium and small wine grape farms generated farm cash incomes (receipts minus costs) of around $221 900, $46 100 and $9600 respectively in 2005-06. Growers in the large farm category generated a sufficiently large cash surplus to record a farm business profit (farm cash income plus changes in trading stocks minus depreciation and imputed labour costs), on average, of $138 800. In contrast, medium and small size farms recorded farm business losses of $4200 and $14 300 respectively.

"Reflecting the relatively dry climate in the region, growers rely heavily on irrigation, with more than 90 per cent irrigating their farms in 2005-06. More than 30 per cent of growers planned to invest in irrigation infrastructure in the next five years," Ms Schneider said.