Data from the 2019-20 Livestock Farm Monitor report shows farms were earning more and spending less compared to the 2018-19 period — even before the spring rains and arrival of La Nina conditions in late 2020.
The jump in profit was seen most strongly in the south-west, followed by Gippsland.
Northern Victoria experienced the smallest increases in average profit.
Agriculture Victoria farm business economist Sam Henty said the news of a profit increase comes after two consecutive years of decreased profits.
“Despite an average reduction in stock weight sold per hectare, strong lamb, mutton and beef prices coupled with an increased quantity and value of stock and feed on-hand resulted in increased gross farm income,” Mr Henty said.
He said farmers in the south-west recorded higher profits than those in Gippsland and northern Victoria.
“In northern Victoria, average variable costs increased as surveyed farms were forced to purchase feed to supplement reduced pasture growth from below average spring rainfall.”
In comparison, Gippsland and south-west farmers had lower costs after reducing their reliance on purchased supplementary feed, coupled with the decreased market price for hay and grain.
Ninety-four sheep, beef and cropping farms located in Gippsland, south-west Victoria and northern Victoria were surveyed as part of the project.
All Victorian farmers are welcome to participate in the Farm Monitor Project, where their information will be treated as strictly confidential while getting a personalised farm report that compares their economic performance over time.
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