Water Use on Australian Farms methodology

1 This publication contains final estimates for data items relating to water collected in the 2017-18 Rural and Agricultural Commodities Survey (REACS). Included are statistics on water use, water sources and irrigation expenditure.

2 National and state/territory level estimates are presented in this release. Data at sub-state levels including Australian Statistical Geography Standard (ASGS) (2016 edition) Statistical Area Level 4 (SA4), Natural Resource Management (NRM) regions and the Murray Darling Basin region will be released as data cubes (Excel xls) and comma separated value (csv) files attached to the publication.

3 The survey is conducted annually in between the five yearly Agricultural Census.

4 Estimates in this publication were compiled from information obtained from the survey for the financial year ended 30 June 2018. Administrative data from non-Australian Bureau of Statistics (ABS) sources was also used to supplement reported data. A copy of the 2017-18 survey form can be found in the Data downloads section of the publication Agricultural Commodities, Australia, 2017-18 (cat. no. 7121.0).

5 The scope of the 2017-18 survey was all businesses undertaking agricultural activity recorded on the Australian Bureau of Statistics' Business Register (ABSBR) above a minimum threshold applied to the estimated value of their agricultural operations.

6 For the purposes of the survey a business (statistical unit) is identified as undertaking agricultural activity if any of the primary or secondary productive activities of that business fall within the Agriculture Subdivision (Subdivision 01) as defined by the 2006 edition of the Australian and New Zealand Standard Industrial Classification (ANZSIC). For more information, please refer to Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0).

7 The ABSBR is based on the Australian Business Register (ABR). Most businesses and organisations in Australia are required to obtain an Australian Business Number (ABN) from the Australian Taxation Office (ATO) for their business operations. The ABR stores details about businesses and organisations when they register for an ABN.

8 Estimated Value of Agricultural Operations (EVAO) was used to determine whether an agricultural business operation was in-scope for the 2017-18 survey. EVAO is an ABS construct used to estimate the relative size of agricultural activity undertaken by a business. Three-year average weighted prices are applied to livestock sales and livestock numbers on the farm, and to area and production data for crops. The resultant aggregation of these commodity values is the EVAO. It is not an indicator of the value of receipts of individual farms (turnover) but rather an indicator of the size or extent of agricultural activity. A three year average weight price is used to minimise the effects of both large movements in commodity prices and seasonal conditions which may otherwise unduly influence a business’ EVAO. For businesses, below the threshold, or with no previously reported agricultural activity a derived value of operations based on turnover reported in its Businesses Activity Statement (BAS) is used as a proxy with only those businesses with an in-cycle EVAO above the minimum threshold contributing to estimates.

9 The scope for the 2017-18 survey was all agricultural businesses with an EVAO of $40,000 or greater. This is a change from previous surveys, where a scope of EVAO of $5,000 or greater was used, and is a continuation of the scope used in the 2015-16 Agricultural Census.

10 As a result of the change in scope, the estimates from the 2017-18 survey will not be directly comparable to previous published survey outputs. To address this, additional estimates have been produced from a number of rural environment and agricultural commodity collections from 2010-11 to 2014-15 using an EVAO of $40,000 or greater. These estimates are now available at the national, state/territory levels and sub-state levels on the ABS website.

11 The 2017-18 survey final estimates are based on the achieved target response rate of 77.1% from a sample of 29,315 agricultural businesses selected.

12 The estimates in this publication are based on information obtained from agricultural businesses that responded to the survey. However, since not all of the businesses that were selected provided data, the estimates are subject to sampling variability; that is, they may differ from the figures that would have been produced if information had been collected from all businesses.

13 One measure of the likely difference is given by the standard error (SE) which indicates the extent to which an estimate might have varied by chance because only a sample was taken or received. There are approximately two chances in three that a 'sample' estimate will differ by less than one SE from the figure that would have been obtained if all establishments had responded or been reported for, and approximately 19 chances in 20 that the difference will be less than two SEs.

14 In this publication, 'sampling' variability of the estimates is measured by the relative standard error (RSE) which is obtained by expressing the SE as a percentage of the estimate to which it refers. Most published estimates have RSEs less than 10%. For some states and territories with limited production of certain commodities, RSEs are greater than 10%. Estimates that have an estimated RSE between 10% and 25% should be used with caution as they are subject to sampling variability too high for some purposes. Estimates with an RSE between 25% and 50% should also be used with caution as they are subject to sampling variability too high for most practical purposes. Estimates with an RSE greater than 50% are considered too unreliable for general use.

15 RSEs for all published estimates are available on request.

16 A table with RSEs for selected commodities follows:

17 Where figures for individual states or territories have been suppressed for reasons of confidentiality, they have been included in relevant totals.

18 Where figures have been rounded, discrepancies may occur between sums of the component items and totals.

19 Final estimates from the survey for agricultural land use, crop and horticultural area and production, livestock numbers and farm management and demographics are available in Agricultural Commodities, Australia, (cat. no. 7121.0) in April 2019.

20 Final estimates of the gross value of agricultural commodities from the 2017-18 Value of Agricultural Commodities Produced (VACP) Collection are available in Value of Agricultural Commodities Produced, Australia, (cat. no. 7503.0) in April 2019.

21 Final estimates for the gross value of agricultural commodities that are produced with the assistance of irrigation will be released in May 2019 in Gross Value of Irrigated Agricultural Production, (cat. no. 4610.0.55.008).

22 ABS publications related to this survey and related environment and agricultural surveys can be accessed under the Statistics page on the ABS website. The ABS also issues a daily Release Advice on the website which details products to be released in the week ahead.

23 As well as the statistics included in this and related publications, the ABS may have other relevant data available on request. Inquiries should be made to the National Information and Referral Service on 1300 135 070.

24 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated. Without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.

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