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Record Qld rural debt 'shows confidence'
25 Jun 2004
Queensland primary producers have been encouraged to borrow record amounts from financiers due to high commodity prices, low interest rates and an easing of drought conditions, the 2004 Rural Debt in Queensland survey shows. Farm lending increased to $7.7 billion by the end of December 2003, up 16 per cent on 2001. The number of healthy debtors increased by 144 per cent, so that almost two-thirds of Qld's farm debts were categorised as "A" class.
The major movement in debt between 2001 and 2003 came from the cattle, cotton and sugar industries. In the cattle industry, 5,608 producers accounted for $3.15 billion or 40.9 per cent of total rural borrowings. The industry increased its overall debt level by 83 per cent or $868 million between 2001 and 2003. The sugar industry remained in second place with $1.03 billion in borrowings, but was down 15 per cent or $153 million over the two years.
Primary Industries Minister Henry Palaszczuk said the survey results showed Qld's farming sector is very resilient and the banking sector is very confident in lending to it.
The Courier-Mail, 24/6/04, page 4.
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