Rural debt soars as farmers battle
Rural debt has surged to more than $19 billion, as Queensland farmers continue to battle the effects of “very challenging circumstances” of the past two years. One farmer has described her family’s ongoing suffering and the painful decisions they’ve had to make, saying COVID was “nothing in comparison”.
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Rural debt has surged to more than $19 billion, as Queensland farmers continue to battle drought and rebuild from the devastating 2019 monsoon.
New figures compiled for the Queensland Rural Debt Survey reveal the average debt per borrower in rural Queensland has shot to $1.05 million – up 11.3 per cent from 2017.
Total rural debt in Queensland has also increased by a massive 10.75 per cent since 2017 and is now sitting at $19.1 billion.
Beef farmers are among those struggling the most, with the total beef debt increasing by $1.3 billion over the past two years to $10.6 billion and the average beef debt hitting $1.4 million.
According to the report, compiled by the Queensland Rural and Industry Development Authority, the Western Downs and Central Highlands region owes the most, carrying about 33 per cent of the state’s entire rural debt.
Agriculture Minister Mark Furner said the debt increase reflected the “very challenging circumstances” rural businesses had faced in the past two years, including the ongoing drought and the historic 2019 monsoon trough.
He said the government had already invested more than $745 million in drought affected industries and communities, including subsidies for affected primary producers and emergency water infrastructure rebates.
“Another $74.6 million was allocated over four years in the 2019–20 budget to continue the Drought Assistance Package and there’s an additional $100 million for concessional loans to primary producers,” he said.
“The Palaszczuk Government also introduced the Farm Business Debt Mediation Program and the Farm Debt Restructure Office to help farm businesses that are struggling financially.”
Opposition Leader Deb Frecklington said the report was another stark reminder that the state’s farmers were doing it tough.
“They need more help to produce the locally grown food and fibre Queensland needs,” she said.
“Queensland’s food supply chain supports around one in seven Queensland jobs, but that is at risk without an economic plan.
“Now more than ever we should be backing our farmers to create a decade of secure jobs and grow the food and fibre we need to be self-sufficient and boost exports.”
Ms Frecklington pointed to the LNP’s plan to build a New Bradfield Scheme as a way to droughtproof the state.
Following the beef industry, the grain industry carries the second most amount of rural debt, owing about $1.28 billion.
QRIDA warned in its report that Queensland agriculture was experiencing even more uncertainty, including rapidly changing market conditions and supply chain constraints.
Their report covers debts owed by farmers and rural enterprises, where the servicing of the debt relies primarily on rural generated incomes.
Scenic Rim Dairy farmer Kay Tommerup, 43, said her family was still suffering from the drought with the pandemic feeling like “nothing in comparison”.
“Everything we’ve gone through with COVID has been nothing in comparison with what happened to us through the droughts,” Ms Tommerup told The Courier-Mail.
“It is something I’ll never get over, it was soul-destroying.”
And with the continuing dry conditions, farmers’ pockets have been left dry, too, forcing Ms Tommerup to sell more than half her stock, now down to only 20 cows.
“There was nothing wrong with those cows, but we had to make a decision whether we were going to look after some of them or watch all of them starve,” she said.
“It’s like losing a friend … we’re just assuming the seasons will be bad from now on … I can’t go through that again.”
