Land productivity improvements drive up farm debt: Rabobank
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Most debt is merely keeping drought stricken properties running. (ABC TV)
A rural lender says moves to improve efficiency and productivity on the land are the main drivers behind rising farm debt.
Rabobank says farm debt across Australia has almost doubled in the past five years to $58 billion.
The Victorian manager of Rabobank, Mark Bennett, says a many farmers are buying up more land and investing in water and infrastructure in an effort to improve their viability.
But he says some of the overall debt is merely keeping drought-stricken properties running.
"In a lot of cases farmers will owe more but the balance sheets may be healthier, they may be equally as viable or more profitable than they used to be but others may not," he said.
"So you're going to get a mixed bag as you look at it collectively."
