The Planfarm Benchmarks is the leading annual report on financial and production performance of broadacre farm business. Drawing on over 460 businesses the Planfarm benchmarks provide insight into the short term and long-term performance of broadacre farm businesses across Western Australia.
Please watch this video of the Planfarm 2019 Season Benchmarks presentation. It provides a great snapshot of what happened during the 2019 Broadacre landscape in WA, and reference to the long term performances of Farming Businesses throughout the WA Wheatbelt.
The 2019 benchmarks results reflect what was a difficult season for most businesses across the state. Below average grain yields, below average farm income and higher operating costs resulted in a low operating profit of $96/ha and a negative state average return on capital of -1.3%. The top 25% of producers still managed to perform well producing a 5.1% return on capital.
Despite the tough season the state average ending equity for 2019 was 80.3%. The large equity gains made in the 2018 season helped to insulate farm businesses from the poor 2019 result and the average business still maintained a strong equity percentage at the end of the season.
The long term results for West Australian broadacre farms still remain very positive with the average business achieving a 10-year average cash return on capital of 5.6% per annum before land value change. Highlighting the strength of Broadacre farms as a positive investment class with good cash returns and asset value appreciation.
To access your 2019 season Planfarm Benchmarks report please complete the form at the bottom of the page.