Canterbury arable cropping

This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 arable monitoring programme. The full Horticulture and Arable Monitoring Report 2008 will be available in September 2008.

Key points

  • Gross farm revenue per hectare increased 28 percent in 2007/08 due to improved crop prices. However, farmers who set contracts at the start of the season were unable to capitalise on increasing cereal prices throughout the 2007/08 season. Crop prices are forecast to further improve in 2008/09, increasing revenue by 20 percent.
  • Farm working expenses per hectare increased 15 percent in 2007/08 due mainly to energy and fertiliser price rises, moderated by improvements in efficiency of use. The forecast 23 percent rise in farm working expenses in 2008/09 is likely to be conservative given recent general input price increases.
  • The arable model reflects a general trend towards increasing crop areas and reducing sheep numbers, with a greater focus on supplying the growing dairy industry with feed and grazing.
  • Intensive arable farms are in a sound financial position and the outlook for the arable sector is positive. Farmers are responding to the current global lift in grain prices in a positive but prudent way by investing time and capital in improving the efficiency of their businesses.

Table 1: Key parameters, financial results and forecast for the Canterbury arable cropping model

(Amended 16 July 2008)

Table 2: Canterbury arable cropping model crop areas

Canterbury arable cropping model budget and expenditure

Table 3: Canterbury arable cropping model budget

Table 4: Canterbury arable cropping model expenditure

Canterbury arable cropping model profitability trends

Figure 1: Canterbury arable cropping model profitability trends

(Amended 16 July 2008)

Figure 1: Canterbury arable cropping model profitability trends

Information about the model

Canterbury is the largest arable cropping area in New Zealand. The Canterbury arable cropping model represents about 500 properties larger than 100 hectares located throughout Canterbury, of which about half are in the mid Canterbury region.

The model is created from information drawn from 20 arable farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average arable farm for Canterbury. Budget figures are averaged from the contributing properties and adjusted to represent a real arable farm. Income figures include off-farm income, new borrowing, and other cash income. Expenditure figures include costs of management, production, debt, leasing, drawings, and development and capital purchases.

The monitored farms generate more than 50 percent of their income from growing crops. They are generally either more than 75 percent irrigated, or are located in normally reliable rainfall areas. Most properties grow a combination of crops, which are grouped in the budget into cereals, small seeds (including grass, clover and vegetable seeds), process vegetables, silage and other crops. Most have some type of stock enterprise as an integral part of the system, for example, grazing, trading and/or breeding stock.

For more information on the models contact murray.doak@maf.govt.nz.

Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720

Web: www.maf.govt.nz

ISSN 1178-2765 (Online)

© Crown copyright - Ministry of Agriculture and Forestry 2008

The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.

 

Contact for Enquiries

Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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