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Survey shows rural debt rise since 2019

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Rural debt has increased by $3.34 billion, or 13.89 per cent, on the Eastern Darling Downs regions according to the 2021 Queensland Rural Debt Survey.

Over the same period, total rural debt in Queensland has risen to $24.06 billion, an increase of 25.97 per cent.

At the same time, the quality of that rural debt has remained strong with almost 95 per cent rated viable or long term viable, despite challenging times for rural businesses.

Rural debt is defined as the total indebtedness of all farmers and rural enterprises throughout Queensland, where the servicing of the rural debt relies primarily on rural generated income.

Minister for Agricultural Industry Development and Fisheries, Mark Furner said the average debt per borrower rose by 32.67 per cent to $1.39 million.

“Debt funding remains the principal source of capital for Queensland primary producers including for working capital, infrastructure, property, and other investment purposes,” Mr Furner said.

“Debt in the beef industry accounts for the largest proportion of rural debt across Queensland, growing by more than $3 billion and accounting for around 60 per cent of the increase in total debt.

“This is followed by cotton debt, growing 53.1 per cent to $1.69 billion.

“Grain/grazing also saw a large increase, totalling $1.68 billion and recording a 40.9 per cent growth since the 2019 survey.”

The total number of rural borrowers has decreased by 920 to 17,312 borrowers, down 5.05 per cent on 2019.

The Western Downs and Central Highlands region represented the largest portion, just over 35 per cent, of total rural debt in Queensland totalling $8.51 billion.

Since the survey was conducted in December 2021, much of the State has experienced an extended La Niña season with several major flooding events, particularly in South East Queensland.

See the 2021 Rural Debt Survey full report and interactive dashboard at qrida.qld.gov.au/queensland-rural-debt-survey

On Our Selection News 25 August 2022

This article appeared in On Our Selection News, 25 August 2022.

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