Industry Financials : 10-12-2012
The rate of return to capital excluding capital appreciation in 2010-11 was, despite improved returns, virtually unchanged on 2009-10 at 2.9%. This largely reflects an expansion in capital investment spurred on by incentives provided by the Federal Government in response to the Global Financial Crisis. The average return of 2.9% for vegetable farms compares favourably with all broad acre farms of 2.5% in 2010-11.
The rate of return to capital improved in all states except Victoria and Tasmania and was particularly strong in South Australia at 5.6%. The fall in Victoria reflected a combination of a fall in returns and strong capital investment while in Tasmania the fall was largely due to a decline in returns.
In 2010-11, on average vegetable farms in Western Australia at $5.6 million and Victoria at $4.9 million continued to be highly capitalised compared to the national average of $3.5 million whereas farms in New South Wales had captilisation values well below the national average at $1.8 million.Related downloads: