Average statewide farm profits are the highest in a decade, according to the 2016-17 Livestock Farm Monitor Report just released.
Agriculture Victoria farm business economist Paul Deane said sheep producers experienced the greatest improvement in economic performance, with Merino wool prices outperforming red meat prices.
‘‘The Livestock Farm Monitor Report analyses the financial performance of 75 farms in Victoria’s key livestock regions of south-west, Gippsland and northern Victoria,’’ he said.
‘‘We found that Victorian livestock farm profitability improved markedly in 2016-17, with some farms achieving record profits.
‘‘High commodity prices for wool, lamb and cattle coupled with above-average rainfall and pasture growth in parts of the state resulted in a strong increase in gross farm incomes and profits.’’
Mr Deane said the outlook was for another potentially very good year for sheep producers in 2017-18, with both lamb and Merino wool prices closing 2017 about 30 per cent higher, compared with December 2016.
Mr Deane said there was good evidence that reinvesting in the farm business can achieve a high return on investment as a direct result of increasing the productive capacity of the existing farming system.
●The report is available online at http://go.vic.gov.au/koZMlh