As a collective business sector, farming faces more than the average share of operational challenges. In addition to the interest rate movements, input prices and currency fluctuations experienced by many business sectors, agricultural producers also face commodity price fluctuations and the often unpredictable variables of the weather.
“The Australian Bureau of Agricultural Research Economics and Science (ABARES) estimates that total farm debt (for broad-acre only farms – farms with paddocks larger than 4,000 square metres – not including dairy) as at 30 June 2013 averages $476,000.[3] For the dairy industry ABARES estimates that average farm debt as of 30 June 2012 is $701,500.”’
Federal budget review 2013 – 14 index |
In April this year the federal government announced a “Farm Finance” initiative to support and assist farmers with high levels of debt and help improve their ongoing financial resilience. There are four measures to the package, as follows:
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