A Longitudinal Examination of Broadacre Farm Size and Performance in Western Australia

Tim Lefroy, James Key and Ross Kingwell
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Tim Lefroy: University of Western Australia
James Key: Business School, University of Western Australia
Ross Kingwell: Department of Agriculture and Food, Western Australia and School of Agricultural and Resource Economics, University of Western Australia

No 16-17, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: Using convergence analysis, we examine changes in the relative size, output composition and financial performance of small and large farms in Western Australia over the decade from 2002 to 2011. Fitted exponential growth rates in key variables allow us to determine whether differences between small and larger farms are narrowing or widening. The analysis draws on a balanced panel of 250 farms in Western Australia. Farms in each size category grew on average, and financial performance ratios indicated that larger farms in absolute terms were more profitable. Contrasting with earlier studies, smaller farms displayed a relative improvement in their performance.

Pages: 31 pages
Date: 2016
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