Net Farm Income Analysis (2019/20)
The results of budgeted Net Farm Income per hectare, for both the top 20% of clients plus average for the group, ranked on Return on Assets is shown below:
Attention to management of costs rather than income, has the greatest impact on Net Farm Income, is the conclusion from the above.
These figures illustrate the importance of having costs appropriate for realistic expected output, not necessarily the lowest costs in absolute terms.
Despite the top 20% of clients having slightly lower trading income per hectare, they have considerably lower operating costs and similar interest costs per hectare, resulting in this group having Net Farm Income per hectare, 21% higher than the average figure for the client group.