Queensland mirrors national farm performance and debt

Australian farm performance was one of the key highlights of the 2023 ABARES Outlook Conference held in Canberra earlier this month.

?The ABARES presentation on Australian Farm performance provided an overview of how farm businesses across Australia had performed in terms of debt and income levels.

?It was also an opportunity to compare the performance of Queensland’s primary industry sectors to those at the national level using data from QRIDA’s?2021 Queensland Rural Debt Survey Report?last year.

?In the presentation, it was reported that Australian farm debt increased significantly, with an expansion in debt from land purchases reported as the primary driver. At the same time, Australian Farm business cash incomes in the broadacre cropping, dairy and livestock sectors saw growth over the past few years.

These findings at the national level mirrored what was reported in the 2021 Rural Debt Survey Report, with Queensland rural debt increasing by 25.97% over the December 2019 to December 2021 period.

?At both the Queensland and National level, a concurrent increase in farm cash income and debt was experienced. In past years, this has not always been the case, with instances of high farm cash incomes often correlating with the paying down of debt.

?On this occasion, a key factor was the record low interest rates experience at the time, with access to cheap credit, increasing the appeal of additional land purchases and on-farm capital investment. Whilst the purchase of additional land and on-farm investment has likely led to increased opportunities and viability for many of the farm businesses that took this step, these actions have not been without risk.

?Over the last year, some of the conditions in the industry have started to shift. Interest rates have risen significantly, commodity and livestock prices have dropped from their high points and there is uncertainty around future seasonal conditions.

?As these changes occur Farmers must take advantage of all the options available to them to protect their business and ensure they remain well-placed to face any challenges in the times ahead.

?QRIDA currently manages a range of schemes available to primary producers in Queensland to help them better prepare for these challenges. These include our Farm Management Grants, which provides a rebate on professional advice to establish a Farm Business Resilience Plan and the Drought Preparedness Grants which offer up to $50,000 as a co-contribution grant to assist primary producers to undertake measures that will improve the drought preparedness of their property.

?Information on these schemes and more is available on QRIDA’s website.