Strong profits help farmers prepare

Victoria’s livestock producers have recorded some of their best profit performances in almost 20 years and are using the good times to prepare for the future.

Agriculture Victoria Farm Business Economist Sam Henty said the results of the 51st Livestock Farm Monitor Project showed 97 of the 113 participating farm businesses recorded a positive 2020-21 profit result.

The livestock sector has faced seasonal challenges in Gippsland and northern Victoria with drought, fires and floods in recent years and the improved performances in these two regions is welcome news.

Gippsland farmers took advantage of the record high beef prices, with farms recording their third highest profit in 17 years of the project.

“The 2020-21 project results identified strong red meat prices and good seasonal conditions helped keep farm incomes and stocking rates high,” Mr Henty said.

“Sheep and cattle producers are using the favourable conditions to prepare for future challenges, such as climate change, by investing in new or upgrading machinery, repaying debt and applying capital fertiliser to pastures.”

The South-West had the highest profit of all the regions with farms maintaining quality pastures and increasing stocking rates to the second-highest level ever recorded.

Favourable rainfall at key times in East and Central Gippsland increased pasture availability and reduced variable costs due to a lower reliance on supplementary feed.

Participation in the 2020-21 project was the highest in 12 years with increased participation underpinned by Agriculture Victoria’s sheep and beef networks known as the BestWool/BestLamb (BWBL) and BetterBeef (BB).