Queensland Rural Debt Survey

About the report

Over time, farmers and rural enterprises have financed debt through commercial credit providers, principally by the major trading banks and lending institutions including QRIDA. Rural businesses operate in a dynamic environment and debt levels continue to be impacted by many factors such as asset price, markets and weather.

QRIDA has delivered the 2023 Survey in collaboration with the Queensland Government Statistician's Office (QGSO) and with data from all the major rural lending institutions in Queensland.

This survey plays an important role in shaping government and industry policy relating to primary production enterprises in Queensland. The final report was tabled on 3 September 2024 by the Minister for Agricultural Industry Development and Fisheries, the Hon Mark Furner MP.

Legislation passed by the Queensland Parliament on 22 March 2017 requires QRIDA to undertake a rural debt survey in Queensland for the period January 2012 to December 2017, and subsequently every two years thereafter, subject to the establishment of a national rural debt survey.

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

Report summary

Total rural debt in Queensland is $29.37 billion as at 31 December 2023, up 8.82 per cent from the previous 2021 survey. The average debt per borrower is $1.75 million, up 12.14 per cent and the number of rural borrowers is 16,799 down 2.96 per cent on 2021.

The December 2021 to December 2023 period for Queensland agriculture has been remarkable in terms of the growth in the State Rural Gross Value of Product (GVP) by $3,298.96 million or 20.81 per cent. 

This increase in state rural GVP performance is a result of improved seasonal conditions, increased agricultural production, trade resumptions and strong demand for Queensland and Australian agriculture products post COVID-19. However, the changing market and seasonal conditions did not translate into improved net farm cash income, with Queensland farm cash income declining over the reporting period by 30.69 per cent. This reduction can in some respects be attributed to the significant increase in Queensland farm cash cost increasing by 43.44 per cent over the same period. 

While overall rural debt has grown, the quality of that debt has improved slightly. In the period 2021 to 2023 the overall value of rural debt rated viable (A) and potentially viable long term (B+) had increased by 1.39 per cent to 96.35 per cent. There was a reduction in value of in B1, B2 and C risk categories by a combined 2.53 per cent. 

Nine industry sectors recorded an increase in debt, with beef recording the largest, a $2.54 billion increase. This increase can be attributed to a combination of improved farm gate prices for beef and the significant increase in rural land values. The second largest increase was the grain/grazing sector with an increase of $292 million. A number of industries reported a reduction in debt levels, led by the cotton and sugar industries with reductions of $219 million and $178 million respectively. 

Over the survey period, the total number and total value of rural property sales in Queensland declined by 37.86 per cent and 18.15 per cent, respectively. The average value of Queensland rural property sales has increased since 2021 by 31.89 per cent, reflecting the recent trend where the number of sales is decreasing faster than total sales value.