A new Rural Bank and Rural Finance report shows that while farmers had a record harvest for the 2016/17 season, the high chance of El Niño and pressure on crop prices will impact what is sown next.
High performing farms keep operating cost ratios down, farm business profit up, equity up, and financing costs down, Rural Bank and Rural Finance sales head Simon Dundon said.
“Australia’s successful farmers know how to do what they do well - having honed production practices and systems - and use this expertise to drive high level financial performance,” Mr Dundon said.
Crop prices should stay steady until the picture for 2017 supply becomes clearer, but the early forecast of drier than normal weather conditions is expected to affect yields, he said.
“While Australian growers saw a bumper 2016/17 season with record production, lower production levels are expected for the 2017/18 season,” Mr Dundon said.
Read the Australian Crop Update at www.ruralbank.com.au/crop