Farm incomes rise

Bright future for industry as cane farm income continues to rise

Cane farm incomes have almost doubled in just seven years according to figures released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) in December.

The ABARES Financial performance of sugarcane farms survey found that Australian sugarcane farm cash income was up 91% compared to 2013-14, reaching an average around $190,800 in 2020-21.

The report put the improved financial performance and profitability of cane farms down to higher yields, larger farms and lower interest payments.

"A key reason is higher yields coming from hard work and constantly improving the farming system, so growers should feel proud of their efforts."

CANEGROWERS CEO Dan Galligan said it reflected the hard work of growers and a willingness to adopt new technology and practices.

“While monthly and annual farm budgeting can be challenging in the face of increasing costs, growers should feel heartened that over the long term, the survey indicated that the industry appears to have been on an upward trajectory,” Mr Galligan said.

“The report indicates that a key reason is higher yields in some districts coming from hard work and constantly improving the farming system, so growers should feel proud of their efforts.

“The average farm size in the sugarcane industry has also increased over the period showing, that while some people may have retired out of the industry, farm consolidation has kept much of the land in cane production, because growers have invested in expanding their businesses.

“The report also helpfully identifies what a valuable and consistent contributor the sugarcane industry is to the economy of Australia and Queensland in particular – at $1.3 billion gross value of production per year.”

The ABARES report is another positive signal for the future of the sugarcane industry and provides useful information as work continues on a new Sugarcane Industry Roadmap, due to be completed early next year.

“While this analysis shows there are many opportunities in our industry, since the report was written we have seen wet weather and mill reliability problems lengthen the current harvest and put some regions at risk of cane being left in the field, meaning growers may miss out on some of their expected income from the current crop,” Mr Galligan said.

The survey was commissioned by the Queensland Department of Agriculture and Fisheries (QDAF) and Sugar Research Australia (SRA).

SRA Chief Executive Officer Roslyn Baker said the Australian sugarcane industry has an exciting future.

“Sugarcane is a resilient crop and world demand for raw sugar is growing," she said.

"The industry’s future is positive with some exciting opportunities to build grower profitability through complementary value adds,” Ms Baker said.

For more information or the full report: https://www.awe.gov.au/abares/research-topics/ surveys/sugar