The survey sought information on irrigated agricultural production, the financial situation of irrigators and the issues faced in maintaining farm profitability.

The report states that irrigated horticulture farms realised an average rate of return to capital and management of 1.8pc compared with 0.5pc for broadacre farms and minus 0.3pc for dairy farms.

Overall, the survey results show a wide variability in financial performance across irrigation farms in all regions and industries in 2006-07.

"There is considerable diversity between irrigation farms across the Basin, in terms of area operated, the degree to which farms rely on irrigation, and the extent of on-farm investment in irrigation infrastructure," ABARE's acting executive director Karen Schneider said.

Despite receiving lower than normal water allocations in 2006-07, dairy farmers were able to irrigate nearly three-quarters of the area established for irrigation on their farms.

Horticulture producers irrigated around 70pc of the area set up for irrigation, while broadacre producers irrigated around 31pc of the area established for irrigation in 2006-07.

Ms Schneider said that prior to this survey there was little comprehensive or consistent information across the Basin on the economic characteristics of irrigators.

"This report provides economic and physical profiles of irrigators by region and industry for the 2006-07 financial year," she said.

"The current and likely future water situation in the Basin has focused attention on a range of challenging water issues.

"This report is an important step in addressing the issues facing irrigators, with the results providing a basis for examining future trends in industry performance."