People - Adjustment - A regional classification
A regional classification
Figure 1 Map of agricultural regions derived by cluster analysis of Statistical Local Areas (Part A)
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Figure 2 Map of agricultural regions derived by cluster analysisof Statistical Local Areas (Part B)
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In order to make clearer some of the structural differences in agriculture across Australia a classification analysis of agricultural Statistical Local Areas was undertaken.
Creation of a classification analysis
Classification analysis is a tool to simplify complex data sets. The resulting groups of regions share similar characteristics and can be considered as single units in exploring data. The process of classifying agricultural regions has been used to great effect in the United States and Canada. The USDA Economic Research Service and other have published revealing classifications of US rural regions which the reader is encouraged to examine (Albrecht 1998; Economic Research Service 1999; Economic Research Service 2000; Paquette & Domon 1999). These classifications have been used to inform farm welfare policy (Whitener 2000). The power of these analysis's cannot be replicated in Australia because of the more limited social and structural data available from our Agricultural Census. Australian data lacks detail on the business structure and labour use of farm enterprises which is available in both the US and Canadian farm censuses. The Canadians have also the capacity to undertake panel studies of their agricultural census data and to link with the Population and Housing Census. These latter capacities allow much more accurate study of agricultural adjustment and of farm welfare issues (Steeves 1979).
Our classification of Australian agricultural regions was based upon the available data: farm Estimated Value of Agricultural Operations and its distribution, farm industries, farm family income and its distribution, relationships between establishment and farm numbers, land use for agriculture and regional labour use for agriculture. The classification was created using the following prcedure:
- Exclusion of all Statistical Local Areas with fewer than 15 establishments and 15 farm families in 1996. This step eliminated Statistical Local Areas likely to have extreme values in ratio measures used in the following steps.
- Principle components analysis and rotation to create nine factors which explained much of the variation in the data. These factors were farm size, broadacre industries, family income, mid-sized farms, peri-urban characteristics, fruit industries, cane, cotton and rice.
- Hierarchical Cluster Analysis of the factor scores to create 12 groups of Statistical Local Areas with generally similar characteristics. These groups did not contain all Statistical Local Areas used in the analysis.
- The group centres produced in the HCA were used to reallocate all Statistical Local Areas with more than 5 farm establishments using a K-means clustering algorithm.
The result was 12 groupings of all Statistical Local Areas with more than 15 establishments and 15 farm families in 1996.
The regions
Peri-urban:
This cluster consists of Statistical Local Areas clustered around many major cities (see Melbourne, Sydney, Adelaide and Perth) as well as around some major regional centres (such as Shepparton). These Statistical Local Areas have a heterogenous mix of small sub-commercial grazing enterprises, as well as significant highly intensive industries such as vegetable production. Farm family incomes are higher than average due to the small number of high turnover intensive establishments and the high off farm income of those living on sub-commercial grazing properties. Less than 5 per cent of the workforce nominate agriculture as their main occupation. Half of the agricultural land is not reported to the Australian Bureau of Statistics farm census.
Closer settled grazing:
This group includes Statistical Local Areas in northern Tasmania, southern Victoria, Victorian irrigation areas, the lower Murray, coastal land south of Perth, the upper Hunter and the Duaringa Shire in Queensland. Many of these regions have a history of more intensive closer settlement. Dairying is the most common industry in many of these Statistical Local Areas. Despite the small area occupied by these Statistical Local Areas, there are over 20,000 farm establishments in the cluster.
Southern Hill Country:
These Statistical Local Areas are generally found along the Great Dividing Range stretching from northern NSW to western Victoria. There are many small farms, with only 8% of establishments having an Estimated Value of Agricultural Operations greater than $300,000. Despite the small farm sizes, farm family incomes are little different from other regions, indicating a high dependence upon off-farm income. Beef and wool production are the predominant industries. Coastal Queensland: These are small Statistical Local Areas scattered along the coast of Queensland coast. Fruit, vegetables, beef and sugar production are the most common industries. Despite the small area of these Statistical Local Areas, there are over 5,000 establishments.
Northern Irrigated Cropping:
This cluster includes the Emerald, Darling Downs, Balonne, Narrabri and Moree districts in northern NSW and southern Queensland. These regions are typified by higher value cropping enterprises including cotton and rice. Many of these communities are dependent upon irrigation, or are becoming increasingly dependent on irrigation. Mixed farming heartland: This cluster includes much of the dryland farming area of the Murray Darling Basin, the Eyre Peninsula and the westerly section of the WA cropping belt. Farms here fall into mid size ranges. Wool and cereal cropping are dominant industries. Agriculture accounts for over a quarter of the regional workforce. This region has the highest proportion of farm establishments with Estimated Value of Agricultural Operations between $100,000 and $300,000. Southern Irrigated cropping: These Statistical Local Areas lie within NSW and are heavily dependent upon irrigation from the Murray and Murrumbidgee. The farm culture is a mix of traditional broadacre industries as well as irrigated crops such as rice.
Irrigated Horticultural Settlements:
These Statistical Local Areas include the Riverland, Swan Hill, Sunraysia and Griffith regions. Many farm businesses in these Statistical Local Areas are irrigated fruit blocks. Major commodities are grapes and other fruit. Only 10 per cent of the workforce nominates agriculture as their main occupation. Rangelands: This cluster includes many Statistical Local Areas within the rangelands region of Australia. The majority of these businesses have gross incomes greater than $300,000. These larger businesses managed the majority of the grazed land. The low ratio of farm families to farm establishments indicates the presence of a larger than average number of corporate farms with often unmarried management and employees.
Northern Beef Zone:
This cluster includes many Statistical Local Areas in inland SE Queensland or northern NSW as well as parts of the Gascoyne Murchison. Beef production is the predominate industry. This zone differs significantly from the rangeland cluster because of its generally smaller farm sizes. Together with the mixed farming heartland, this cluster has the lowest farm family income average over the 1986,91 and 96 censuses. Despite having similar farm sizes to the high rainfall beef region, the capacity to earn off-farm income is possibly lower in this region. West Australian cropping zone: This is the most recently settled part of the West Australian wheat belt. This cluster has the highest average farm gross incomes, and the highest proportion of the landscape managed by large farms. Farm family incomes are little different to the Australian average, indicating a lower dependence upon off-farm work and high dependence upon farm income.
Tropical horticulture:
This is a small number of Statistical Local Areas which includes the Ord region, Carnarvon and Mareeba. These Statistical Local Areas have a mix of rangeland and horticultural industries. In effect, each of these Statistical Local Areas contains very different landscapes which would belong in quite different clusterings if Statistical Local Area boundaries more closely aligned industry variations.
Table 1 Establishments, farmers and farm families in each cluster region
| Region | Total establishments with EVAO greaterthan $5k (1996$) in 1996 | Total Farmers in 1996 | Total Farm Families in 1996 |
|---|---|---|---|
| Peri-urban | 12,031 | 21,097 | 11,537 |
| Closer Settled Grazing | 22,332 | 33,842 | 16,919 |
| Southern Hill Country | 24,329 | 26,253 | 13,753 |
| Coastal Queensland | 6,386 | 8,538 | 4,574 |
| Northern Irrigated Cropping | 4,415 | 6,001 | 2,846 |
| Broadacre heartland | 28,866 | 38,268 | 19,098 |
| Southern Irrigated Cropping | 2,912 | 4,334 | 2,130 |
| Irrigated Horticultural Settlements | 6,164 | 7,358 | 4,059 |
| Rangelands | 2,002 | 3,067 | 1,116 |
| Northern Beef | 19,814 | 22,589 | 11,118 |
| West Australian Cropping | 4,834 | 7,940 | 3,462 |
| Tropical Horticulture | 815 | 1,303 | 569 |
Table 2 Agricultural inustries by cluster region (averaged over Statistical Local Areas within each cluster)
| Region | Establishments with industry as a % of all establishments in 97 | ||||
|---|---|---|---|---|---|
| Sheep | Wool | Beef | Dairy | Cereals | |
| Peri-urban | 13 | 12 | 27 | 8 | 8 |
| Closer Settled Grazing | 18 | 17 | 49 | 50 | 10 |
| Southern Hill Country | 67 | 66 | 68 | 6 | 33 |
| Coastal Queensland | 0 | 0 | 28 | 3 | 0 |
| Northern Irrigated Cropping | 27 | 25 | 60 | 5 | 76 |
| Broadacre heartland | 85 | 83 | 39 | 2 | 73 |
| Southern Irrigated Cropping | 63 | 60 | 48 | 5 | 78 |
| Irrigated Horticultural Settlements | 18 | 17 | 9 | 2 | 16 |
| Rangelands | 19 | 19 | 90 | 0 | 5 |
| Northern Beef Zone | 22 | 22 | 75 | 11 | 32 |
| West Australian Cropping | 88 | 87 | 17 | 0 | 94 |
| Tropical Horticulture | 6 | 6 | 20 | 1 | 6 |
Table 2 (contd) Agricultural inustries by cluster region (averaged over Statistical Local Areas within each cluster)
| Region | Establishments with industry as a % of all establishments in 97 | |||||
|---|---|---|---|---|---|---|
| Grapes | Other Fruit | Vegetables | Rice | Cane | Cotton | |
| Peri-urban | 4 | 18 | 23 | 0 | 0 | 0 |
| Closer Settled Grazing | 2 | 4 | 7 | 0 | 0 | 0 |
| Southern Hill Country | 2 | 3 | 3 | 0 | 0 | 0 |
| Coastal Queensland | 0 | 20 | 11 | 0 | High | 0 |
| Northern Irrigated Cropping | 1 | 1 | 1 | 0 | 0 | 22 |
| Broadacre heartland | 2 | 1 | 2 | 0 | 0 | 0 |
| Southern Irrigated Cropping | 3 | 5 | 3 | 47 | 0 | 0 |
| Irrigated Horticultural Settlements | 63 | 39 | 6 | 2 | 0 | 0 |
| Rangelands | 1 | 1 | 2 | 0 | 0 | 0 |
| Northern Beef Zone | 1 | 7 | 6 | 0 | 0 | 1 |
| West Australian Cropping | 0 | 0 | 0 | 0 | 0 | 0 |
| Tropical Horticulture | 3 | 64 | 35 | 0 | Moderate | 1 |
Table 3 Some structural characteristics of cluster regions averaged over Statistical Local Area within each cluster
| Region | Ratio of establishment area to agricultural area 1996 | % workforce with agriculture as main occupation 1996 | Ratio of farm families to establishments in 1996 | Median EVAO (5k cut-off) 1996 in 1996$ |
|---|---|---|---|---|
| Peri-urban | 50 | 4 | 200 | 65 |
| Closer Settled Grazing | 93 | 14 | 116 | 86 |
| Southern Hill Country | 100 | 13 | 96 | 56 |
| Coastal Queensland | 100 | 9 | 93 | 117 |
| Northern Irrigated Cropping | 100 | 19 | 79 | 143 |
| Broadacre heartland | 93 | 27 | 76 | 157 |
| Southern Irrigated Cropping | 100 | 27 | 81 | 172 |
| Irrigated Horticultural Settlements | 87 | 12 | 81 | 95 |
| Rangelands | 100 | 10 | 56 | 350 |
| Northern Beef Zone | 100 | 20 | 83 | 89 |
| West Australian Cropping | 82 | 33 | 76 | 388 |
| Tropical Horticulture | 91 | 9 | 76 | 147 |
Table 3 (contd) Some structural characteristics of cluster regions averaged over Statistical Local Area within each cluster
| Region | Establishments with EVAO less than $32k as a % of establishments with EVAO above $32k in 1996 | % Establishments with EVAO between $32k and $100k in 1996 | % Establishments with EVAO between $100k and $300k in 1996 | % Establishments with EVAO > $300k in 1996 |
|---|---|---|---|---|
| Peri-urban | 67 | 45 | 33 | 22 |
| Closer Settled Grazing | 49 | 36 | 47 | 16 |
| Southern Hill Country | 59 | 57 | 34 | 9 |
| Coastal Queensland | 32 | 33 | 48 | 20 |
| Northern Irrigated Cropping | 22 | 31 | 36 | 33 |
| Broadacre heartland | 13 | 28 | 50 | 21 |
| Southern Irrigated Cropping | 11 | 22 | 48 | 30 |
| Irrigated Horticultural Settlements | 29 | 45 | 41 | 14 |
| Rangelands | 8 | 11 | 30 | 58 |
| Northern Beef Zone | 51 | 44 | 38 | 17 |
| West Australian Cropping | 3 | 8 | 30 | 62 |
| Tropical Horticulture | 17 | 24 | 47 | 29 |
Table 3 (contd) Some structural characteristics of cluster regions averaged over Statistical Local Area within each cluster
| Region | % of farm establishment area held by establishments with EVAO greater than $300k in 1996 | Median farmer age 1996 | Average median farm family income 86,91,96 | Average % families with income less than $20k 1986,91,96 | Average % families with income > $50k 1986,91,96 |
|---|---|---|---|---|---|
| Peri-urban | 21 | 48 | 40 | 36 | 17 |
| Closer Settled Grazing | 24 | 48 | 36 | 31 | 22 |
| Southern Hill Country | 18 | 52 | 34 | 28 | 24 |
| Coastal Queensland | 32 | 50 | 37 | 34 | 21 |
| Northern Irrigated Cropping | 42 | 47 | 32 | 29 | 29 |
| Broadacre heartland | 38 | 47 | 29 | 24 | 31 |
| Southern Irrigated Cropping | 56 | 47 | 31 | 27 | 32 |
| Irrigated Horticultural Settlements | 34 | 47 | 37 | 32 | 21 |
| Rangelands | 76 | 47 | 38 | 33 | 23 |
| Northern Beef Zone | 24 | 49 | 28 | 22 | 34 |
| West Australian Cropping | 79 | 44 | 35 | 34 | 25 |
| Tropical Horticulture | 76 | 47 | 42 | 41 | 17 |
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