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R J Preston Ltd chartered accountants know that farm accounting differs from other business accounting. There are multiple factors — many unpredictable and uncontrollable — that directly impact how profitable a farm is. Our tax accountants compile a newsletter quarterly which is available to download at no charge. If you are a livestock, dairy or crop farmer, you will find the information in our newsletters beneficial to your business. You can also find our documents and newsletters further down the page.

Benchmarking

Farm statistical surveys

Explore our 2021 farm statistical survey results below, with interactive charts and data tables. Historical survey PDFs are available in the archive at the bottom.

Survey overview — year ended 30 June 2021

Net farm profit by farm type

The 2021 year again saw the Dairy sector with the highest Net Profits. This result has been the same for four of the past five years.

Net profits increased in only two farm types in 2021 – Dairy and Intensive Crop. The increases were driven by the increased payout along with lower debt servicing costs (Dairy) and better margins on winter lambs (Intensive Crop).

The decline in income for the livestock-based sectors was due to the very dry summer which influenced the finishing ability for livestock, with many stock sold at discounted prices.

Operating surplus per hectare

The operating surplus per hectare is a key result for comparison.

Significant decreases in revenue rather than increased costs have driven the operating surplus down for both Downlands Livestock and Hill & High-Country farms.

Average sale value per kg milk solids

The overall average payout for 2021 recorded an increase on the previous year of .09c per kilogram of milk solids. This is the second highest average payout recorded.

Supplementary feed costs will continue to grow with the increase of grain prices. Farmers will need to maintain steady production under a regime of decreased fertiliser inputs.

Financial institutions continue to pursue principal repayments from the industry due to the higher level of debt within the dairy sector.

Total farm capital & total debt (average)

For this statistic we calculate the estimated fair sale value of land, buildings, livestock, plant, and dairy co-op shares.

Changes in Total Farm Capital are reflective of the differences in values of livestock, vehicles, and plant, as land values have been relatively static.

The average debt level across all farm types increased by $183,191 to $3,085,175.

Banks are continuing to seek debt reduction. Many farms are able to meet these demands with little effect on their cash flow due to reduced debt servicing from low interest rates.

Lambing percentages

The Downlands farms recorded a decrease in lambing percentages reflecting the significant animal health issues experienced by some clients in the survey.

Properties in North Otago and Marlborough had poor lambing compared to those in Canterbury.

Farm type 201620172018201920202021
Intensive Crop 133.4% 126.3% 107.7% 124.6% 112.6% 139.3%
Downlands Livestock 125.9% 135.5% 133.0% 142.9% 141.1% 122.9%
Flatland Livestock 125.2% 131.9% 115.2% 129.1% 125.3% 132.6%
Hill & High-Country 105.0% 110.6% 112.5% 116.9% 115.4% 116.4%

Average sale values

The 2021 year saw the lowest lamb prices since 2017 due to the influence of drought.

Average prices recorded for cattle with increased prices for farm types with irrigated land compared to those not irrigated.

Lambs ($)
Farm type 201620172018201920202021
Intensive Crop $101.18 $97.43 $147.89 $152.67 $150.70 $141.00
Downlands Livestock $77.66 $91.29 $119.50 $120.43 $118.67 $114.20
Flatland Livestock $91.16 $95.75 $119.87 $129.20 $122.64 $109.86
Hill & High-Country $67.75 $80.18 $98.91 $109.36 $108.27 $95.73
Heifers ($)
Farm type 201620172018201920202021
Intensive Crop $774.21 $1009.00 $1183.00 $980.50 $1326.40 $1348.29
Downlands Livestock $975.94 $1000.91 $1218.11 $1358.60 $1168.67 $1089.71
Flatland Livestock $841.32 $1129.00 $1279.67 $997.70 $1018.00 $1218.33
Hill & High-Country $977.91 $1246.78 $1314.40 $1277.00 $1245.70 $1007.82
Steers ($)
Farm type 201620172018201920202021
Intensive Crop $1240.35 $1486.50 $1315.60 $1114.00 $1303.60 $1525.14
Downlands Livestock $1227.22 $1278.00 $1527.25 $1491.73 $1490.89 $1282.13
Flatland Livestock $1112.00 $1137.75 $1105.30 $1351.00 $1041.33
Hill & High-Country $1040.78 $1342.50 $1451.45 $1394.40 $1279.78 $1057.90

Interest & rent as % of T.G.F.P.

This statistic stayed relatively the same as the previous year across all farm types except for Flatland Livestock which recorded a marked increase due to considerable increase in debt for capital projects undertaken by two larger farms in the survey.

Farm type 201620172018201920202021
Intensive Crop 15% 17% 18% 17% 16% 14%
Downlands Livestock 14% 19% 13% 11% 12% 11%
Flatland Livestock 24% 24% 20% 15% 16% 23%
Hill & High-Country 15% 15% 11% 10% 11% 14%
Dairy Factory Supply 28% 23% 20% 20% 16% 15%

Intensive Crop

This group must have a minimum of 60% of total gross profits being generated from cropping.

Net farm profit — group average vs top three

Operating surplus per Ha — group average vs top three

Total debt — group average vs top three

Group average results (2015–2021)

Metric 2015201620172018201920202021
Est Effective Farm Area (Ha) 258 283 286 301 299 305 293
Net Farm Profit $122,366 $87,763 $79,109 $97,742 $103,526 $131,751 $155,610
T.G.F.P. Per Effective Ha $4,338.88 $4,400.73 $4,150.36 $4,178.94 $4,434.07 $4,522.32 $4,690.32
C.F.W.E. as a % of T.G.F.P. 62 64 65 65 63 64 64
Interest & Rent as a % of T.G.F.P. 17 15 17 18 17 16 14
C.F.W.E. per Effective Ha $2,725.55 $2,868.33 $2,734.79 $2,714.85 $2,842.86 $2,884.12 $3,068.63
Irrigation Expenses per Irrigated Ha $317.29 $351.95 $298.49 $462.24 $462.52
Fertiliser Expenses per Effective Ha $347.85 $356.2 $413.64 $430.69 $410.33
Weed & Pest Expenses per Effective Ha $445.86 $396.31 $391.08 $388.11 $441.82
Operating Surplus per Ha $1,613.33 $1,532.4 $1,415.79 $1,464.09 $1,591.21 $1,638.2 $1,621.69
Return on Capital (%) 9.1 10.6 8.2 2.4 2.5 2.8 3.0
Total Debt Term & Current $1,229,841 $1,463,856 $1,728,943 $2,119,399 $2,434,041 $2,363,162 $2,717,822
Total Gross Profit to Plant Ratio 1.9 1.0 2.2 2.0 2.2 3.4 2.9

Top three average results (2017–2021)

Metric 20172018201920202021
Est Effective Farm Area (Ha) 234 303 279 224 314
Net Farm Profit $193,232 $276,471 $286,055 $199,936 $182,618
T.G.F.P. Per Effective Ha $5,650.67 $7,116.59 $5,898.63 $6,399.01 $7,293.02
C.F.W.E. as a % of T.G.F.P. 54 63 56 58 66
Interest & Rent as a % of T.G.F.P. 20 15 15 13 15
C.F.W.E. per Effective Ha $3,125.33 $4,517.54 $3,423.06 $3,788.22 $4,842
Irrigation Expenses per Irrigated Ha $161.69 $406.86 $251.41 $385.08 $503.34
Fertiliser Expenses per Effective Ha $352.8 $515.35 $448.94 $430.69 $410.33
Weed & Pest Expenses per Effective Ha $663.25 $572.69 $360.02 $367.85 $576.67
Operating Surplus per Ha $2,525.33 $2,599.04 $2,475.57 $2,610.79 $2,451.02
Return on Capital (%) 20.1 5.0 3.9 3.8 4.0
Total Debt Term & Current $2,378,459 $3,397,573 $2,490,620 $2,432,761 $5,012,304
Total Gross Profit to Plant Ratio 1.7 2.0 1.8 1.6 1.8

Downlands Livestock

These properties are generally of easy contour with very little tussock. Most of the property can be cultivated by wheel tractors though a four-wheel drive tractor or crawler may be required occasionally.

Net farm profit — group average vs top three

Operating surplus per Ha — group average vs top three

Total debt — group average vs top three

Group average results (2015–2021)

Metric 2015201620172018201920202021
Est Effective Farm Area (Ha) 695 751 742 726 693 742 758
Farm Stock Units at Start of Year 4,758 4,251 4,263 4,106 4,360 4,405 4,357
Net Farm Profit $57,937 $3,687 $28,967 $66,421 $139,806 $120,851 $20,898
Lambing % (Ewes) 126.7 125.9 135.5 133.0 143.0 141.1 122.9
Lambing % (Hoggets) 62.5 61.6 64.3 71.1 73.6 78.3 69.0
Av Sale Value Lambs $82.34 $77.66 $91.29 $119.5 $120.43 $118.67 $114.2
Calving % (Cows) 89.5 77.9 85.9 94.2 91.5 80.1 84.5
Av Sale Value Heifers $849.62 $975.94 $1,000.91 $1,218.11 $1,358.6 $1,168.67 $1,089.71
Av Sale Value Steers $1,068.62 $1,227.22 $1,278 $1,527.25 $1,491.73 $1,490.89 $1,282.13
T.G.F.P. Per Total S.U. $114.94 $114.24 $135.18 $146.24 $160.08 $163.47 $131.34
T.G.F.P. Per Effective Ha $965.87 $870.58 $937.59 $1,022.41 $1,224.83 $1,206.3 $897.08
C.F.W.E. as a % of T.G.F.P. 70 76 67 62 55 58 77
Interest & Rent as a % of T.G.F.P. 13 14 19 12 11 12 11
C.F.W.E. per S.U. $76.48 $86.83 $89.53 $90.06 $84.74 $89.1 $94.25
C.F.W.E. per Effective Ha $666.99 $627.66 $610.41 $607.71 $651.21 $677.55 $668.01
Operating Surplus per S.U. $38.46 $30.45 $45.71 $56.24 $75.34 $74.37 $37.09
Operating Surplus per Ha $298.88 $242.93 $327.29 $414.71 $573.62 $528.75 $229.07
Return on Capital (%) 1.2 0.5 1.5 3.7 4.0 4.0 0.3
Total Debt Term & Current $1,561,716 $1,714,538 $1,529,968 $1,397,454 $1,421,283 $1,506,091 $1,580,724

Top three average results (2017–2021)

Metric 20172018201920202021
Est Effective Farm Area (Ha) 346 449 247 322 337
Farm Stock Units at Start of Year 3,496 3,542 2,025 2,441 3,363
Net Farm Profit $186,648 $241,308 $199,025 $220,160 $139,843
Lambing % (Ewes) 154.7 125.7 135.1 113.0 118.4
Lambing % (Hoggets) 62.3 85.1 87.4 79.1 69.0
Av Sale Value Lambs $97.33 $121.67 $117.3 $121.33 $138
Calving % (Cows) 90.7 89.0 60.8 74.1 60.8
Av Sale Value Heifers $1,329 $1,219 $1,539.33 $1,318.67 $1,245.67
Av Sale Value Steers $1,036.33 $1,904.33 $1,506 $1,462 $1,463.67
T.G.F.P. Per Total S.U. $139.67 $167 $203.22 $223.92 $162.29
T.G.F.P. Per Effective Ha $1,386.33 $1,388.67 $1,558.8 $1,558.62 $1,256.18
C.F.W.E. as a % of T.G.F.P. 53 42 36 39 54
Interest & Rent as a % of T.G.F.P. 3 12 13 16 5
C.F.W.E. per S.U. $73.33 $67.33 $72.69 $84.61 $83.45
C.F.W.E. per Effective Ha $717 $576 $564.29 $613.09 $682.82
Operating Surplus per S.U. $66.33 $99.67 $130.52 $139.32 $78.84
Operating Surplus per Ha $669 $812.67 $994.51 $945.53 $573.37
Return on Capital (%) 1.9 2.6 12.1 4.3 1.8
Total Debt Term & Current $581,878 $1,379,125 $431,194 $1,443,063 $429,858

Flatland Livestock

By definition, these properties are completely flat.

Net farm profit — group average vs top three

Operating surplus per Ha — group average vs top three

Total debt — group average vs top three

Group average results (2015–2021)

Metric 2015201620172018201920202021
Est Effective Farm Area (Ha) 416 370 347 355 367 345 317
Farm Stock Units at Start of Year 3,663 2,682 2,153 2,228 2,653 2,461 2,218
Net Farm Profit $84,867 $10,343 $12,752 $62,984 $107,234 $70,711 $50,963
Lambing % (Ewes) 127.6 125.2 131.9 115.2 129.1 125.3 132.6
Av Sale Value Lambs $95.1 $91.16 $95.75 $119.87 $129.17 $122.64 $109.86
Calving % (Cows) 73.5 87.3 95.0 101.0 89.9 89.6 89.6
Av Sale Value Heifers $978.08 $841.32 $1,129 $1,279.67 $997.67 $1,018 $1,218.33
Av Sale Value Steers $659.22 $1,112 $1,137.75 $1,105.25 $1,351 $1,041.33
T.G.F.P. Per Effective Ha $1,519.16 $1,337.05 $1,238.73 $1,382.29 $1,456.04 $1,549.86 $1,539.36
C.F.W.E. as a % of T.G.F.P. 59 78 73 64 57 60 74
Interest & Rent as a % of T.G.F.P. 18 24 24 19 15 16 23
Irrigation Expenses per Irrigated Ha $367.32 $348.36 $467.2 $363.33 $320.35
C.F.W.E. per Effective Ha $896.79 $832 $835.2 $909.43 $910.44 $955.36 $1,021.1
Operating Surplus per Ha $622.37 $505.05 $403.33 $472.85 $545.6 $594.5 $518.25
Return on Capital (%) 7.4 8.1 4.4 5.9 8.5 5.6 3.4
Total Debt Term & Current $796,177 $867,695 $824,068 $960,759 $810,503 $834,467 $1,075,093

Top three average results (2017–2021)

Metric 20172018201920202021
Est Effective Farm Area (Ha) 159 357 445 185 262
Net Farm Profit $88,680 $115,606 $173,127 $78,985 $103,691
Lambing % (Ewes) 145.7 130.7 152.7 150.4 147.0
Av Sale Value Lambs $103.33 $130.33 $134 $124.67 $102.33
Av Sale Value Heifers $1,182.67 $1,279.67 $997.67 $1,018 $1,218.33
Av Sale Value Steers $1,212 $1,205.33 $1,208.33 $1,527.33 $1,041.33
T.G.F.P. Per Effective Ha $2,215.33 $2,188.02 $1,689.29 $2,668.43 $3,017.96
C.F.W.E. as a % of T.G.F.P. 48.0 48.5 45.5 58.2 56.2
Interest & Rent as a % of T.G.F.P. 17.3 18.9 16.7 20.6 18.4
C.F.W.E. per Effective Ha $1,111.33 $1,175.89 $761.11 $1,618.41 $1,730.78
Operating Surplus per Ha $1,104 $1,012.13 $928.17 $1,050.02 $1,287.17
Return on Capital (%) 3.5 2.7 3.2 1.0 0.9
Total Debt Term & Current $529,771 $1,820,788 $2,201,462 $584,800 $1,330,127

Hill & High-Country Livestock

These properties are obviously steeper by nature, and with small to moderate areas able to be cultivated by wheel tractor. These properties have portions of tussock and some native pasture.

Net farm profit — group average vs top three

Operating surplus per Ha — group average vs top three

Total debt — group average vs top three

Group average results (2015–2021)

Metric 2015201620172018201920202021
Est Effective Farm Area (Ha) 1,756 1,788 2,163 2,144 2,139 2,274 2,208
Farm Stock Units at Start of Year 6,047 5,795 6,498 7,931 7,666 8,544 8,141
Net Farm Profit $83,566 $52,384 $89,580 $223,015 $227,745 $207,837 $86,556
Lambing % (Ewes) 114.5 105.0 110.6 112.5 116.9 115.4 116.4
Av Sale Value Lambs $74.68 $67.75 $80.18 $98.91 $109.36 $108.27 $95.73
Calving % (Cows) 84.6 88.8 86.5 88.9 90.2 85.2 86.9
Av Sale Value Heifers $1,075.07 $977.91 $1,246.78 $1,314.4 $1,277 $1,245.7 $1,007.82
Av Sale Value Steers $1,177.92 $1,040.78 $1,342.5 $1,451.45 $1,394.4 $1,279.78 $1,057.9
T.G.F.P. Per Total S.U. $84.95 $83.01 $93.36 $103.35 $121.67 $106.23 $98.2
T.G.F.P. Per Effective Ha $398.24 $416.23 $367.09 $476.59 $543.69 $462.67 $438.44
C.F.W.E. as a % of T.G.F.P. 57 65 65 56 56 59 70
Interest & Rent as a % of T.G.F.P. 16 15 15 11 10 11 14
C.F.W.E. per S.U. $48.59 $58.92 $62 $58.15 $68.07 $62.66 $67.09
C.F.W.E. per Effective Ha $220.96 $254.38 $233.73 $266.15 $304.07 $285.99 $296.39
Operating Surplus per S.U. $36.41 $33.62 $31.55 $45.2 $53.6 $43.57 $31.11
Operating Surplus per Ha $177.28 $161.84 $133.27 $210.44 $239.62 $176.67 $142.05
Return on Capital (%) 8.8 7.1 5.3 7.2 7.1 6.7 3.3
Total Debt Term & Current $820,103 $701,734 $657,097 $662,751 $736,740 $663,414 $1,010,633

Top three average results (2017–2021)

Metric 20172018201920202021
Est Effective Farm Area (Ha) 917 757.7 788 954 773.3
Farm Stock Units at Start of Year 4,606 4,150 4,788 4,711 4,206
Net Farm Profit $107,719 $169,763 $235,549 $160,586 $112,975
Lambing % (Ewes) 123.7 123.3 127.7 125.9 125.8
Av Sale Value Lambs $76.67 $85.33 $108 $102.67 $86
Calving % (Cows) 87.0 80.0 87.0 82.0 81.9
Av Sale Value Heifers $1,071.67 $1,456.33 $1,345.33 $1,416 $875
Av Sale Value Steers $1,372.33 $1,462.67 $1,371 $1,374.33 $592.33
T.G.F.P. Per Total S.U. $91 $93.05 $124.55 $95.78 $88.86
T.G.F.P. Per Effective Ha $499.33 $540.56 $797.94 $495.75 $438.44
C.F.W.E. as a % of T.G.F.P. 50.0 37.2 46.9 41.2 44.9
Interest & Rent as a % of T.G.F.P. 21.0 16.0 9.6 20.4 19.3
C.F.W.E. per S.U. $45.33 $34.8 $60.16 $39.1 $40.26
C.F.W.E. per Effective Ha $249.33 $204.29 $388.3 $205.42 $223.11
Operating Surplus per S.U. $46.33 $60.08 $64.39 $56.68 $48.6
Operating Surplus per Ha $249.67 $336.26 $409.64 $290.34 $267.33
Return on Capital (%) 7.3 12.1 4.5 10.8 9.0
Total Debt Term & Current $438,166 $311,648 $433,866 $552,047 $698,788

Dairy Factory Supply

All properties factory supply.

Net farm profit — group average vs top three

Operating surplus per Ha — group average vs top three

Total debt — group average vs top three

Group average results (2015–2021)

Metric 2015201620172018201920202021
Avg Number Cows Milked 737 676 793 892 753 859 860
Effective Milking Area (Ha) 216 194 224 249 215 230 238
Net Farm Profit ($100,242) ($621,475) $93,364 $338,662 $175,166 $560,053 $731,398
Av Sale Value per Kg Milksolids $5.41 $3.64 $5.51 $6.34 $6.36 $7.12 $7.21
Milksolids per Cow Milked (Kg) 439.3 482.3 465.1 469.3 473.8 481.6 489.3
Milksolids per Ha of Milking Area (Kg) 1,598.7 1,632.2 1,585.3 1,674.4 1,656.4 1,704.2 1,637.9
Gross Income per Milking Area $8,688.2 $5,910.43 $8,747.75 $10,586.45 $10,676.96 $12,190.7 $11,707.14
T.G.F.P. per Effective Farming Ha $5,831.18 $4,935.38 $6,894.13 $8,123.85 $8,519.81 $9,570.72 $10,143.73
C.F.W.E. as a % of T.G.F.P. 72 96 64 60 65 61 58
Interest & Rent as a % of T.G.F.P. 25 28 23 20 20 16 15
C.F.W.E. per Kg Milksolids $4.38 $4.03 $3.85 $4.2 $4.49 $4.66 $4.35
Supplementary Feed per Kg Milksolids $0.89 $0.88 $0.69 $0.79 $0.87 $0.9 $0.91
Interest & Rent per Kg Milksolids $1.44 $1.55 $1.42 $1.45 $1.43 $1.38 $1.19
Operating Surplus per Kg Milksolids $1.66 $0.26 $2.19 $2.84 $2.4 $3.1 $3.19
Operating Surplus per Effective Ha $1,633.35 $255.91 $2,516.63 $3,236.88 $2,848.29 $3,931.86 $4,606.81
Irrigation Expenses per Irrigated Ha $329.39 $473.92 $590.7 $689.02 $651.84
Fertiliser Expenses per Effective Ha $475.23 $520.77 $558.52 $545.15 $504.03
Total Debt Term & Current $6,956,077 $7,164,806 $9,004,939 $10,655,003 $7,865,566 $9,142,788 $9,041,605
Debt per Kg Milksolids $20.94 $20.86 $23.13 $25.7 $19.68 $20.71 $19.79

Top three average results (2017–2021)

Metric 20172018201920202021
Avg Number Cows Milked 1,035 872 1,199 1,035 1,013
Effective Milking Area (Ha) 280 228 324 285 281
Net Farm Profit $316,070 $373,746 $201,093 $818,193 $1,111,369
Av Sale Value per Kg Milksolids $5.49 $6.23 $6.37 $7.17 $7.31
Milksolids per Cow Milked (Kg) 467.0 497.0 468.3 486.8 475.6
Milksolids per Ha of Milking Area (Kg) 1,746.0 1,897.4 1,767.0 1,797.8 1,695.0
Gross Income per Milking Area $9,574.33 $11,791.76 $11,263.13 $12,881.72 $12,325.85
T.G.F.P. per Effective Farming Ha $6,955.33 $8,550.32 $9,354.69 $9,913.01 $12,185.38
C.F.W.E. as a % of T.G.F.P. 57 59 64 57 52
Interest & Rent as a % of T.G.F.P. 22 19 21 15 14
C.F.W.E. per Kg Milksolids $3.39 $4.16 $4.35 $4.43 $4.17
Supplementary Feed per Kg Milksolids $0.67 $0.98 $0.87 $0.93 $0.94
Interest & Rent per Kg Milksolids $1.35 $1.38 $1.48 $1.25 $1.11
Operating Surplus per Kg Milksolids $2.57 $2.87 $2.45 $3.39 $3.83
Operating Surplus per Effective Ha $2,989.67 $3,509.91 $3,302.13 $4,248.68 $5,730.08
Irrigation Expenses per Irrigated Ha $206.3 $586.09 $515.53 $677.36 $576.56
Fertiliser Expenses per Effective Ha $495.09 $607.31 $639.85 $541.55 $493.22
Total Debt Term & Current $11,332,088 $10,986,770 $13,602,146 $10,882,681 $10,861,918
Debt per Kg Milksolids $24 $25.14 $23.78 $25.12 $22.05
Download survey PDFs (archive)

Farm Statistical Survey 30 June 2021

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Farm Statistical Survey 30 June 2020

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Farm Statistical Survey 30 June 2019

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Farm Statistical Survey 30 June 2018

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Farm Statistical Surveys 30 June 2017

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