Nationally, average farm cash income for dairy business farms increased from $75 110 per farm in 2009-10 to $1410000 per farm in 2010-11, the greatest since 2007 08, in real terms. The rise in typical farm cash income was mainly because of higher costs paid in milk in areas creating production milk. Milk production stayed comparable to 2009 – heightened access to irrigation water and 10 despite improved grazing conditions.
Typical dairy farm cash income for Queensland improved marginally from a mean of $114 060 per farm in 2009-10 to $115 400 per farm in 2010-11. Milk production decreased in 2010-11, leading to lower milk receipts. Still this decrease was offset by a drop in average total cash prices resulting mainly from expenditure on bought fodder.
In 2011-12, despite a little elevated in national milk production, lower milk prices are projected to result in decreased average financial operation of dairy farms in all states except in Tasmania. Farm cash income for Australian dairy farms is projected to decrease somewhat to norm $ 1360000 per farm in 2011-12, that’s still around 30% above the norm for the ten years to 2010-11.
Farm cash income is estimated to have decreased for Queensland dairy farms in 2011-12. Milk production and costs were lower. The decrease in total cash receipts is estimated to have been partially offset by lower total cash expenses, especially due to additional decrease in fodder cost. Nonetheless, average farm cash income is projected to have dropped to $890000 per farm in 2011-12, that’s around the 10-year average to 2010-11 for Queensland dairy farms (in real terms).