September 18, 2026
Primary producer debt in Queensland rose by 17 per cent to $36.47 billion between 2022-2025, according to Queensland Rural Industry Development Authority (QRIDA) data released last week.
QRIDA found that the average debt of the 15,125 rural borrowers had risen to $2.41 million.
The most heavily indebted industries were the beef, grain/grazing and grain sectors, which accounted for three-quarters of all rural borrowing.
However, the increase in demand for beef sector loans was reflected in rises in the value of output.
The Gross Value of Production of the Queensland beef sector rose 21 per cent between 2021 and 2025.
Rising rural land values also contributed to the demand for farm loans.
QRIDA concluded that 96 per cent of rural loans were viable, or potentially viable in the long-term.
Kingaroy-based economist Dr Les Henning said debt levels were high for many rural borrowers; the overall ratio of gross debt to GVP was 167 per cent (up from 151 per cent in 2023).
“While most debt is currently viable, borrowers may come under pressure from future shocks such as product price falls, including exchange rate depreciation, adverse weather conditions, rising interest rates and other input cost rises such as diesel and fertiliser prices,” Dr Henning sad.
“Therefore, caution in further borrowing may be advisable for many rural borrowers.”
- External link: Queensland Rural Debt Survey
