Grain in good shape: Bankwest

A run of good seasons has put Western Australian grain farmers in an improved position, according to the latest Planfarm Bankwest Benchmarks data.

Although not as strong a performance as in the 2013-14 season, 2014-15 was a good year for grain farmers with near record production.

Debt to income levels have fallen, while the average farm has 80 per cent equity.

Yields and profitability were slightly down on the previous year, but well up compared with 2012-13.

Wheat yields were 37 per cent higher than two years previously, while barley was stronger by a third.

Canola yields were 50 per cent higher than 2012-13.

The average farm earned an operating profit of $184 a hectare, which compared to $238/ha the year previously.

Return on capital, excluding appreciation, was above average for the industry at 5 per cent.

Bankwest rural and regional banking state manager John Sgambelluri said WA agriculture was at a very positive point.

“The best performing regions were located in a diagonal band through the Central Wheatbelt, stretching from Northam to Jerramungup,” he said.

“The southern regions generally experienced a very good season, while the north of the state was below average.

“The net effect over the whole state was an average season in terms of profitability – a little better than average when you consider total state grain receivals of 14.5mmt.”