Borrowing within the Australian agricultural sector has grown by 5% in real terms, pushing total farm lending to $142.5 billion.
According to the latest 2023-24 lending data from the Australian Prudential Regulation Authority (APRA), this upward trend was seen across nearly every state and territory. Western Australia led the charge with an 8.2% increase, followed closely by South Australia at 7.5%. The Northern Territory was the only region to buck the trend, recording a decrease in agricultural lending.
Why Borrowing is Up
Dr. Jared Greenville, Executive Director of ABARES, noted that accessing external capital remains a healthy and necessary strategy for many agricultural enterprises.
He explained that many farmers are securing loans to invest back into their operations, adding that financing is a crucial tool for business development and maintaining ongoing working capital. However, he also acknowledged that for some producers, the increase was a matter of necessity, as they required working funds to stay afloat or were simply unable to reduce their existing loan balances.
Sector-Specific Impacts
The data revealed significant shifts within specific agricultural industries:
- Broadacre Cropping: This sector saw the largest overall dollar increase, with lending jumping by $3.3 billion.
- Egg and Poultry: Lending to this sector spiked sharply by 22%. Dr. Greenville attributed this directly to the 2024 bird flu outbreak, noting that producers faced a double-blow as sales dropped while disease-response costs soared.
Arrears Rise, but Foreclosures Remain Low
While overall borrowing levels are climbing, the data indicate that the vast majority of it remains highly manageable. Out of nearly 147,000 active farm loans, less than 0.1% are currently subject to financial mediation or foreclosure.
Despite this overall stability, there are signs of emerging financial strain. The value of loans and leases more than 90 days past due has increased significantly, rising from $1.18 billion in 2023-24 to $2.1 billion in 2024-25.
For the full annual report and interactive dashboard,
visit the Department of Agriculture’s lending survey page.