Rural Strategy - Surf Coast Shire

Surf Coast Shire Rural Strategy Review
Final Report
4.3 Drivers of Change in Agriculture in the Surf Coast Shire
Farm viability and escalating land prices have been identified as major drivers of change in
the makeup of the agricultural industries in the Surf Coast Shire.
Farm Viability
For a full-time farming household, business viability is based on its capacity to:
Generate sufficient disposable income to pay living expenses, invest in farm production
and service debt;
Support more than one household as the farm is passed to the next generation; and
Grow or change over time to remain viable. Agriculture faces a long-term decline in
terms of trade and needs to increase productivity or expand to remain viable, usually
both.
Benchmarking of agricultural and horticultural industries and the Future Family Farms
Program suggests that a viable farm should generate at least $270,000 – $300,000 of gross
income. The 2001 income from farm businesses across the Shire has been segmented
based on the Estimated Value of Agricultural Operations sourced from the ABS and is
summarised in Table 4-2
This data shows that 88% of farm businesses fall into the part and small property categories.
These would include lifestyle farms where income is generated off-farm and older
businesses with little or no debt. For instance a large proportion of the part time and small
businesses run sheep and beef enterprises which are common agricultural uses for lifestyle
property owners.
In the absence of off-farm income, small and part-time businesses will need to increase
production either through farm amalgamation or intensification or they may choose to sell
the property and pursue agriculture elsewhere.
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