The 2016-17 Livestock Farm Monitor Report released last week analysed the financial performance of 75 farms in Victoria’s key livestock regions, including ones in the Horsham area.

It found some farms achieved record profits during that period, with sheep producers experiencing the greatest improvement in economic performance.

The report noted high commodity prices for wool, lamb and cattle, coupled with above average rainfall and pasture growth in parts of the state, played a major role in profit increases.

The report also noted above average spring and autumn rainfall in 2016-17 and subsequent pasture growth across the state was the best in more than a decade.

It found the dryland, mixed cropping and livestock zones in the Wimmera and Mallee were among the areas to benefit most from the higher than average rainfall.

Horsham Regional Livestock Exchange manager Paul Christopher said the improved conditions were welcome after some tough years.

“There's been some good rains for the past couple of years, which has meant plenty of feed around our area,” he said.

“Other areas of Australia have had their hottest winter on record and haven't been as lucky as us.”

Mr Christopher said generally, wool producers in the area were faring better than previous years.

He said lamb prices were also helping producers in that sector.

“I don't know if the industry can afford for it to be so expensive though, as far as selling it goes,” he said.

“Even if it comes back to $6 a kilogram, you'd think there would still be good money in it. The results are a nice change for people running stock, as they’ve done it hard for probably the last 10 years or so, so anyone with cattle, wool and prime stock is getting some good returns now.

“Even goat meat is doing really well.”

Agriculture Victoria farm business economist Paul Deane said sheep producers looked set for another good year, with both lamb and merino wool prices closing 2017 about 30 per cent higher than the previous year.

“Consecutive years of strong cash flows for sheep and cattle producers provides an opportunity to re-invest in the farm business, rebuild the farm balance sheet by reducing debt, and consider Farm Management Deposits or other off-farm investments to diversify wealth and investment risk,” he said.

Agriculture Victoria has run the Livestock Farm Monitor Project survey in south-west Victoria since 1971, and statewide in its current format since 2009. 

Mr Deane said people could visit http://go.vic.gov.au/koZMlh to see the report.