|
|
|
Farm profits tied to farm size and commitment
2 Feb 2005
A new study by the Australian Bureau of Agricultural and Resource Economics into the grains industry found that productivity of Australian grains industry farms is greater on average in Western Australia than in the eastern states. ABARE said the differences between Western Australia farms, and farms in the eastern states could be explained by farm size, levels of soil moisture available for winter grain production and the level of production intensity. The report found that minimum or reduced tillage methods were associated with increased productivity. In contrast, the level of income earned off-farm from wages or investments as a share of the farm’s total cash receipts had a negative relationship with productivity. Unit costs of sowing a crop declined as farm productivity increased, and sowing costs also declined as the size of the farm operation increased, indicating that there are economies of size operating in the grains industry.
ABARE, 02/02/05
|
|
