Farm Numbers Down - Farm Debt Up

Written by: Duncan B. on 26 November 2025

The number of farm businesses in Australia has been falling for many years. In fact, since 1974, almost 100,000 farms have gone.

In 1990 there were 83,000 broadacre farm businesses. By 2024 there were 49,000. Despite the inroads of locally owned and foreign agribusiness investors, 95% of the remaining farms are family owned.

There are many reasons for the decline in farm numbers. In the 1990’s some politicians urged farmers to “get big or get out.” Droughts and floods took their toll as did rising prices for inputs versus static or declining prices for produce. Farms were sold as farmers died or retired. The changes in Government support to farmers and de-regulation in industries such as grain growing and dairying are other factors contributing to the fall in farm numbers.

At the same time as farm numbers are falling, farm debt is increasing at a rapid rate. In the year to September 30, farm debt was about $140 billion, up from $135 billion the previous year. These figures come from the 2025 Banking in Agribusiness report by the Australian Banking Association. 

According to this report, grain and beef cattle farmers have accounted for the largest increases in rural debt, with grain growers increasing their lending by 40.1 % between 2019 and 2024, from $36.2 billion to $50.8 billion. Credit to beef cattle farmers grew by 48.1% from $21.4 billion to $31.8 billion in the same period.

In 1996 the average farm debt was $304,776. In 2024 the average farm debt was $1.2 million. Reasons for the increase in debt include farmers expanding their operations by buying more land and new equipment. No doubt some farmers incur debt to struggle to stay afloat in tough times. 

Farmers have increased their average capital from $2.4 million to $14 million, because the value of farmland has grown at a record rate in recent years. Purchases by foreign investors, particularly Canadian pension funds have helped drive the demand for farmland.

Print Version - new window Email article

-----