Queensland rural lending increases to $11 billion
Published Tuesday, 17 June, 2008 at 10:04 AM
Minister for Primary Industries and Fisheries
The Honourable Tim Mulherin
The future for Queensland’s primary industries continued to be bright with the financial sector increasing borrowings to the sector by $2.61 billion or 30 per cent over the past two years to a total of $11.28 billion, Minister for Primary Industries and Fisheries Tim Mulherin said today.
Mr Mulherin, who delivered the QRAA 2007 Rural Debt Survey results at a formal presentation in Brisbane today, said he was encouraged by the survey’s findings.
“Queensland producers have been forced to deal with many financial hardships over the past two years as a result of the drought,’’ Mr Mulherin said.
“Despite this, over 80% of the total debt was classified by the banks as ‘A’ and ‘B+' rated debt, indicating borrowers are considered to be viable or potentially viable in the long-term”.
Despite a decrease of 13% in the number of borrowers during the 2005 – 2007 period, the average debt per borrower has grown to $795,599 – an increase of 50% from 2005.
“Eighty-seven per cent of the 2005 – 2007 increase in rural debt is represented by three industries – beef, cotton and grain/grazing,’’ Mr Mulherin said .
“Due to the size of the beef industry, estimated to be worth $3.44 billion to Queensland in 2007-08, increases in cattle property prices and production costs have largely contributed to the 41% increase of $1.7 billion in debt over the past two years.
“As a result, total rural debt for the beef industry has now reached $6 billion”.
The cotton industry recorded the second highest level of rural debt, with a total of $1.1 billion – 10% of total debt in Queensland.
Mr Mulherin said from a regional perspective, three of Queensland’s 10 ABARE regions accounted for more than 47% of the total increase in debt in 2007.
“These regions were the Maranoa/Western Downs ($467 million increase; 18% of the total debt increase), Central South Coast ($430 million; 16%) and Eastern Downs ($390 million; 15%).’’
The Rural Debt Survey, which is commissioned by QRAA and prepared by Moore Stephens, is based on information supplied by rural lending institutions and includes all Queensland primary producers with borrowings.
QRAA’s website, www.qraa.qld.gov.au, provides further information regarding the level of rural debt within each region and industry, as well as the facility to download the full report of the 2007 Rural Debt Survey and lodge requests for more detailed reports.
Media:
Minister’s office David Potter 3239 6530
QRAA Colin Holden, Chief Executive Officer 3032 0122
NB. Images of the 2007 Rural Debt Survey presentation with the Minister of Primary Industries and Fisheries are available upon request. Please contact: QRAA – Nichola Chellingworth 3032 0145.
Mr Mulherin, who delivered the QRAA 2007 Rural Debt Survey results at a formal presentation in Brisbane today, said he was encouraged by the survey’s findings.
“Queensland producers have been forced to deal with many financial hardships over the past two years as a result of the drought,’’ Mr Mulherin said.
“Despite this, over 80% of the total debt was classified by the banks as ‘A’ and ‘B+' rated debt, indicating borrowers are considered to be viable or potentially viable in the long-term”.
Despite a decrease of 13% in the number of borrowers during the 2005 – 2007 period, the average debt per borrower has grown to $795,599 – an increase of 50% from 2005.
“Eighty-seven per cent of the 2005 – 2007 increase in rural debt is represented by three industries – beef, cotton and grain/grazing,’’ Mr Mulherin said .
“Due to the size of the beef industry, estimated to be worth $3.44 billion to Queensland in 2007-08, increases in cattle property prices and production costs have largely contributed to the 41% increase of $1.7 billion in debt over the past two years.
“As a result, total rural debt for the beef industry has now reached $6 billion”.
The cotton industry recorded the second highest level of rural debt, with a total of $1.1 billion – 10% of total debt in Queensland.
Mr Mulherin said from a regional perspective, three of Queensland’s 10 ABARE regions accounted for more than 47% of the total increase in debt in 2007.
“These regions were the Maranoa/Western Downs ($467 million increase; 18% of the total debt increase), Central South Coast ($430 million; 16%) and Eastern Downs ($390 million; 15%).’’
The Rural Debt Survey, which is commissioned by QRAA and prepared by Moore Stephens, is based on information supplied by rural lending institutions and includes all Queensland primary producers with borrowings.
QRAA’s website, www.qraa.qld.gov.au, provides further information regarding the level of rural debt within each region and industry, as well as the facility to download the full report of the 2007 Rural Debt Survey and lodge requests for more detailed reports.
Media:
Minister’s office David Potter 3239 6530
QRAA Colin Holden, Chief Executive Officer 3032 0122
NB. Images of the 2007 Rural Debt Survey presentation with the Minister of Primary Industries and Fisheries are available upon request. Please contact: QRAA – Nichola Chellingworth 3032 0145.