Several have had to walk off their dairying properties as banks foreclosed due to income failing to meet huge debts.

“It’s not as rosy as many people think,” he said after the Tax Office this week released figures for the 2012-13 financial year.

“The truth is, farmers are struggling to make ends meet.

“Several farms in the area have gone into receivership in recent years including one which has been in the family since the 1880s.

“And when the banks sell the property it goes for half the price it was worth earlier.

“Everywhere you look dairy farmers are worried about the future.”

The tax figures revealed Scotts Creek had an average taxable income of only $22,453. Statistics show the district had 55 farms which had a net loss of $602,528 equating to an average $10,955 each.

Mr Vogels was an MP from 1999 to 2010 serving as member for Warrnambool, Western Province and Western Victoria.

He said he was tiring of persistent messages in the media talking up the profitability of dairying in the south-west.

“They talk about milk being liquid gold and Chinese wanting to invest,” he said.

“Everyone’s waiting on prices with bated breath.

“In reality it’s not paying for production costs.”

Many south-west farming districts recorded losses for the 2012-13 financial year according to tax figures. 

In the Hamilton-Byaduk postcode area 305 primary production enterprises posted a net negative $2.037 million, which equates to an average $6681 loss for each farm.

Within Warrnambool City’s boundary there were 320 primary production enterprises which had a net loss of $885,321, equating to an average $2766 each.

Among the best performing areas was Caramut district where 60 farms posted a net $889,596 result, equating to $14,826 each while Terang district had 225 farms recorded a net $2.29m, equating to a $10,955 profit.