22 December 2009 |
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| Despite drought, slight improvement to Murray-Darling Basin irrigators’ incomes |
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| Although most irrigators remained affected by the drought and lower than normal water allocations, there was overall improvement in average financial performance in 2007-08, according to ABARE’s latest report on irrigators’ incomes in the Murray-Darling Basin.
The report – An economic survey of irrigation farms in the Murray-Darling Basin: industry overview and region profiles 2007-08 – was released today by Dr Terry Sheales, Deputy Executive Director, ABARE. “Irrigated horticulture farms in the Murray-Darling Basin realised an average rate of return to capital and management of 2 per cent in 2007-08, compared with 1.5 per cent in 2006-07. Returns for broadacre and dairy farms that irrigate improved slightly to average 1.2 per cent and 1.5 per cent, respectively, in 2007-08,” noted Dr Sheales. The report provides economic and physical profiles of irrigators by region and industry for the 2006-07 and 2007-08 financial years, based on a survey of 900 irrigation farms across 10 regions in the Murray-Darling Basin. Overall, the report shows there was wide variability in financial performance across irrigation farms in all regions and industries in 2006-07 and 2007-08. “There is considerable diversity between irrigation farms across the Murray-Darling Basin in terms of area operated, the degree to which farms rely on irrigation and the extent of on farm investment in irrigation infrastructure,” said Dr Sheales. Seasonal conditions varied across the Murray-Darling Basin in 2007-08, with dry conditions persisting in the southern part of the Basin. The current and likely future water situation in the Basin has focused attention on a range of challenging water issues. “This report is the latest in a series addressing the issues facing irrigators. Results for 2006-07 and 2007-08 provide a base period for examining future trends in industry performance. Irrigators who participated in this survey have made an important contribution to the development of policies and programs that will affect the future of irrigation industries. Fieldwork to collect data for the 2008-09 financial year will commence in February 2010,” Dr Sheales concluded. |
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| For media interviews and comment, please contact Dale Ashton, Senior Economist, Farm Economic Analysis Section, on 02 6272 2368, or email dashton@abare.gov.au. For free downloads of the report An economic survey of irrigation farms in the Murray-Darling Basin: industry overview and region profiles 2007-08, please visit the ABARE website www.abare.gov.au or phone Publications on 02 6272 2010. ABARE also simultaneously released the reports:
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