Rural Debt Survey Report - Final July 2010

Supporting Queensland Industry
Rural Debt in Queensland

Survey results 2009
Prepared by Commissioned by
Table of Contents
EXECUTIVE SUMMARY 2
Background to the Survey ............................................................................................................ 2
Major Findings of the RDQ 07 Survey........................................................................................... 5
ADDENDUM TO EXECUTIVE SUMMARY 16
Size of Debt ............................................................................................................................... 16
Rating ........................................................................................................................................ 18
Performance............................................................................................................................... 19
Comparison of Debt to Production Volume ................................................................................. 19
Examination of Debt by Region AND Industry ............................................................................. 23
Part 1 – Debt Analysis 30
COMMENTARY ON MOVEMENT IN DEBT 30
Overview of Movement in Debt ................................................................................................... 65
BACKGROUND AND DEFINITION OF RURAL DEBT 66
Background ................................................................................................................................ 66
Definition of Rural Debt .............................................................................................................. 67
METHODOLOGY OF STUDY 68
THE EXTENT, NATURE AND SIZE OF RURAL DEBT 70
Queensland ................................................................................................................................ 70
Queensland by Region and Industry ........................................................................................... 70
Changes in sources of rural debt ................................................................................................ 72
Categorisation Of Rural Debt ...................................................................................................... 73
Levels of Non-Performing Debt ................................................................................................... 76
Gross Value of Production .......................................................................................................... 78
Type of Loan Facilities and Purpose of Loan .............................................................................. 80
Age of Borrower ......................................................................................................................... 81
COMPARISON OF PREVIOUS SURVEYS AND RDQ 07 SURVEY 82
Comparison of Debt by Industry.................................................................................................. 82
Debt by Industry ......................................................................................................................... 83
Comparison of Debt to Gross Value of Production (GVP)............................................................ 85
Comparison of Rural Debt by Region 1994 – 2009 ..................................................................... 86
PART II – APPENDIX 88
Appendix 1 – Shires And Equivalent ABARE Regions And Industries Covered ........................... 88
Appendix 2 - Industries ............................................................................................................... 90
Appendix 3 – Definitions ............................................................................................................. 91
Appendix 4 – Institutions Contacted During The RDQ 09 Survey ................................................ 92
PART III - DATABASE REPORTS 93
Page 1 of 130
EXECUTIVE SUMMARY
BACKGROUND TO THE SURVEY
In December 2009, QRAA commissioned Moore Stephens to conduct a survey of the level of
Rural Debt in Queensland at December 2009 (the RDQ 09 Survey).
This is the eleventh report commissioned by QRAA since 1994 and is used as a basis for
providing bi-annually comparisons of rural-related debt in Queensland, as well as an indicator
of trends and movements across industries and geographic locations.
Since 2000 year, the survey has been commissioned bi-annually; previous to this the survey
was commissioned annually from 1995.
The RDQ 09 Survey (and previous surveys) define rural debt as the total indebtedness of all
farmers and/or rural enterprises throughout Queensland, where the servicing of the debt
relies primarily on farm-generated income. Debt categories such as vendor and family loans
were excluded.
Under the terms of reference the survey was required to identify:
 the extent, nature and size of gross rural debt in Queensland;

 its performance and rating; and
 to provide information on debt equity levels and other relevant factors and
issues.
The availability of information of this kind and its rating by region, local government shire and
industry is essential to those needing to provide informed advice to, and on, the rural sector.
Since the RDQ 05 Survey, details of loan indebtedness at a Local Government Shire Level
have been able to be disclosed. However, up to date data from the Australian Bureau of
Statistics and Gross Value of Production details at a Shire or Regional level, is not available.
Projected data in respect of the Gross Value of Production at a Queensland State level has
been made available via the Department of Employment, Economic Development and
Innovation (“DEEDI”).
As in previous years, the RDQ 09 Survey was undertaken with the cooperation of the major
banks and Queensland-based lending institutions who provided confidential data relating to
the level of rural debt in Queensland as at December 2009. The financial institutions involved
are listed in Part III.
Page 2 of 130
In the conduct of the RDQ 09 Survey, new participants have been included in the Survey this
year; data that in previous surveys was carried forward from previous surveys but who have
not participated in the RDQ 09 Survey, were excluded in the results of the RDQ 09 Survey.
The impact of the additional and exclusion of such bodies netted, is minimal.
As data is able to be collected at the lowest geographical denominator, (being the post code
applicable to the place of operation of the entity), the RDQ Survey‟s since 2003 have been
able to provide the collation of data as follows:
State Level
Regional Level (10 Regions within Queensland)
Shire Level (73 Local Councils)
This process allows reporting to be provided both at a Regional level, and within a Region at
a Shire level.
The industry classifications used throughout the report refer to the Australian and New
Zealand Standards Industrial Classification (ANZSIC) 2006. However a number of providers
of data still use the 1993 system and in these instances, the 1993 coding system has been
used.
In the conduct of RDQ 09, the financial institutions were able to provide (in respect of industry
classification), not only the Divisional Code (e.g. Horticulture) but also the Class classification
in respect of the particular industry (e.g. within Horticulture Divisional Code, classes such as
Plant Nurseries, Cut Flower and Flower Seed Growing (being Class or a sub classification
code)).
Divisional Classification (e.g. Horticulture)
Class Classification
(e.g.
Plant Nurseries
Cut Flower and Flower Seed Growing)
Page 3 of 130
In the RDQ 07 Survey, for the first time, data was collected in relation to the Category,
“Services To Agriculture”. This data was identified in the report but was excluded in the RDQ
07 results to allow comparison to previous surveys.
In the RDQ 09 Survey, for the first time, data was collected re the Categories “Hunting and
Trapping”, Forestry and Logging”, Marine Fishing” and “Aquaculture”.
The impact of the inclusion of these categories was also not material, both in relation to the
estimate of number of borrowers and the value of loan indebtedness.
Where possible, Moore Stephens has met with industry associations and other significant
stakeholders to obtain interpretation and comment on the Survey. General comment has also
been sought from major commercial lenders regarding the survey findings and the movement
of rated debt.
Attached to this Executive Summary is an addendum containing tables and graphs, which
provide more detailed information relating to key aspects of the summary.
Page 4 of 130
MAJOR FINDINGS OF THE RDQ 07 SURVEY
Size Of Debt
The survey found that as at December 2009, the level of debt had increased by $3,241 million
to $15,061 million (an increase of 27% from December 2007).
2009
$3,241 million (27%)
Amount ($'000) 2009 2007 $ Change % Change
Total Debt $ 15,061,972 11,820,465 3,241,506 27%

Number of farm businesses 16,358 15,553 805 5%
Average $ debt per borrower 920,766 759,987 160,779 21%
Approximately 71% of the debt was funded by four (4) major lending institutions as compared
to 2007, when 81% of debt at 2007 was represented by four (4) major lending institutions.
Regions
On a regional basis, three of the ten regions in Queensland accounted for more than 65%
(2007: 47%) of the total increase in debt in the 2009 survey. These regions were:
$m % of increase
in total debt
Region 3221 Central $797m 25%
Region 3222 Maranoa/Wst Dwn $702m 22%
Region 331 Central Sth Coast $586 18%
(see Addendum Table 1; page 16)
Page 5 of 130
This compares to the position as reported in the 2007 survey, where the following three
regions accounted for more than 47% of the increase in debt over the period 2005– 2007
$m % of increase in debt
Region 3222 Maranoa/Western Downs $467m 18%
Region 331 Central Sth Coast $430m 16%
Region 321 Eastern Downs $390m 15%
The major increases in debt by Region from 1994 to 2009 were:
Region 3222 Maranoa/Western Downs $2,543m 23%
Region 331 Central Sth Coast $2,226m 20%
Region 3221 Central $2,173m 19%
Region 332 Tropical Nth Coast $1,185m 11%
Industries
The major movement of debt, per Industry, in the 2007 – 2009 period was:
Beef $2,187m 67%
Grain $388m 12%
Horticulture Trees $301m 9%
(see Addendum Table 2 ; page16)
The major movements in debt 1994 to 2009 were:

Beef $6,816m 61%
Cotton $873m 8%
Grain $701m 6%
(see Addendum Table 3 ; page17)
Page 6 of 130
Local Government Shires
The report identifies debt within 73 Local Government Councils (“Shires”) within Queensland
as at 31 December 2009.
Nine (9) Shires (2007: 9) represent approximately 52% (2007: 51%) of the rural indebtedness
at December 2009, with four (4) Shires (2007: 4) accounting for approximately 32% (2007:
29%) of this indebtedness.
Debt within Shires
Shire Shire as%

of Total Debt
Banana Shire Council 10%

Central Highlands Regional Council 9%
Dalby Regional Centre 8%
Goondiwindi Regional Council 6%
Toowoomba Regional Council 4%
Roma Regional Council 4%
Barcaldine Regional Council 4%
Isaac Regional Council 4%
Balonne Shire Council 3%
Page 7 of 130
Debt within Region by Shire
Four (4) Regions account for 71% of the RDQ 09 debt (2007: 72%), and within these
Regions, twelve (12) Shires account for 46% (2007, nine (9) Shires 47%) of this
indebtedness.
Shire as % Region as %
Of Total Debt of Total Debt
Region 331 Central South Coast 21%
Brisbane City Council 3%
Gold Coast City Council 2%
Bundaberg Regional Council 2%
Region 3222 Maranoa / Western Downs 21%

Dalby Regional Centre 6%
Goondiwindi Regional Council 4%
Roma Regional Council 4%
Region 3221 Central 17%

Central Highlands Regional Council 9%
Banana Shire Council 7%
Region 332 Tropical North Coast 13%

Burdekin Shire Council 3%
Mackay Regional Council 2%
The major movements in industry debt in the 2007 – 2009 periods were in the beef, grain and
horticulture - trees industries.
% of Total Debt Increase

Beef 67%
Grain 12%
Horticulture – Tree crops 9%
Page 8 of 130
The Local Government Shires that accounted for a major component of these industry debts
are as follows:
Industry Regional / Shire Council % of industry Debt

Beef Regional Council: Central Highlands, 38%
Barcaldine and Roma.
Shire: Banana
Grain Regional Council: Central Highlands, 62%
Barcaldine and Roma.
Shire: Banana
Horticulture – Tree crops Regional Councils: Tablelands, Cairns, 39%
North Burnett and Cassowary.
Page 9 of 130
 Rating
For the purpose of consistency of analysis and interpretation of the data, a rating system has
been established and applied to all farm business borrowers in Queensland and which has
been consistently used over the life of the Survey. While this system may be similar to that of
some lending institutions, it is independent of them.
The system is comprised of five categories:
'A' Borrowers who are considered viable under most or all circumstances;
'B+' Borrowers who are considered potentially viable long-term but are experiencing debt
servicing difficulties;
'B1' Borrowers who are experiencing debt-servicing difficulties and a deteriorating debt
situation but with continuing support from lenders;
'B2' Borrowers who are experiencing debt servicing difficulties and a deteriorating debt
situation;
'C' Borrowers who are considered non-viable.
The RDQ 09 Survey reflected the following movement in different categories:
Borrowers Movement 2007 - 2009 % Change

Number of Borrowers
'A' increased 4%
'B+' increased 125%
'B1' decreased (65%)
„B2‟ decreased (1%)
„C‟ increased 134%
Indebtedness of Borrowers
„A‟ increased 27%
„B+‟ increased 37%
'B1' decreased (2%)
„B2‟ increased 218%
„C‟ increased 125%
Page 10 of 130
The major movement in number of borrowers per category of debt, was reflected within the
„B+‟ category, which experienced an increase of 125%, and the „B1‟ category which
experienced a decrease of 65%, in the number of borrowers since 2007
The major movement in number of borrowers over the 2007 – 2009 period occurred within the
following industries:
Movement in % of Movement
Number of Borrowers 2007 - 2009
Beef 940 19%
Dairy (1,213) (73)%
Services to Agriculture 1,086 79%
The movement in rated debt from 2007 to 2009, as compared to the movement that occurred
in the 2005 – 2007 period, is reflected as follows:
% Total Debt 2009 % Total Debt 2007 % Total Debt 2005

'A' 60 61 61
'B+' 23 21 23
'B1' 12 16 14
The following industries accounted for the shift in rated debt in the 2007 – 2009 period:
„A‟ „B+‟ „B1‟ „B2” „C”

Beef 29% 38% 31% 844% 1,897%
Grain 53% 111% 74% 295% 11,893%
Grain/Grazing (13%) (12%) (7%) (43%) 299%
Horticulture - Tree crops 110% 124% 45% 176% (44%)
Page 11 of 130
 Performance
While these surveys began in 1994, all five categories of the rating system have been applied
since 1995. As a result, a longer-term comparison on the movement of debt can only be
undertaken on figures from the years 1995 - 2009.
During the 2007 – 2009 period, the overall number of rural-related borrowers increased by
805. The decrease in overall number of borrowers in the years 1995 – 2007 was 767,
reflecting a net increase of 38 borrowers in the 1995 – 2009 period.
In the period 2007 – 2009, the „B+‟ category represents a 125% increase (3,548 borrowers) in
that category, and the 'B1' category represents a decrease of 65% (3,080 borrowers) in that
category.
The total debt of borrowers during the period 1995 - 2009 increased by $11 billion, with „A'
borrowers accounting for $6.8 billion of this, and the „B+‟ and „B1‟ borrowers accounting for
$3.6 billion.
Comparison of Debt to Production Volume
In periods up to 2003, detailed statistical information on the Gross Value of Production of

Agriculture (GVP) has been obtained from the Australian Bureau of Statistics (ABS), and had
been utilised in examining the relationship between movement of debt and GVP up to and
including RDQ 03.
In the compilation of subsequent surveys, the forecasts provided by DEEDI via their
forecasting, analysis and trends reports titled “Prospects” and “Prospects Update” have been
utilised, in the provision of estimates of GVP.
In the 2001 survey the overall figures indicated that the corresponding increase in gross rural
debt was reflected in a corresponding increase in GVP, as gross rural debt reflected 92% of
GVP.
Based on DEEDI forecasts of GVP, gross rural debt as a percentage of GVP has increased to
106.4% in 2003, 102.4% in 2005, 143% in 2007 and 169% in 2009.
Page 12 of 130
Consequently it is indicated that since 2001 year, debt has outstripped the growth in GVP,
with 2005 – 2007 and 2007 – 2009 periods experiencing a major increase in the divergence
between debt and GVP.
At 2009, the beef industry debt represented 55% of total indebtedness, increasing from the
2005 – 2007 period, where beef industry debt represented 51% of total indebtedness. In the
2007 – 2009 period beef represented the major increase in debt being 67% with grain the
next largest increase in debt, being 12% of total increase in indebtedness.
In the period 1994 to 2009, overall rural-related debt increased by 289% while GVP increased
by 72%. This compares to the period 1994 – 2007, where overall rural-related debt increased
by 205% while GVP increased by only 63%.
In the period 1994 – 2009, the gross value of production has increased with improved trading
conditions within the beef industry. In the period 1994 – 2001, the yearly increase in GVP
approximated 5%, whilst the average yearly increase in the period 2003 - 2005 and 2005 –
2007 approximated 8% and the 2007 – 2009 period approximated 7%. In the 2007 – 2009
period, GVP has increased by approximately 7%, whilst debt has increased by 27%; in the
2005 – 2007 period, GVP fell by (2%), whilst debt has increased by 30%.
Agricultural GVP consists of three components - crops, livestock slaughtered and livestock
products.
From 1994 to 2009 there has been an overall increase in GVP of $3,732m with the value of
crops increasing by $1,739m, livestock products decreasing by $.845m and the value of
slaughtered livestock increasing by $2,001m.
In the 2007 – 2009 period, overall GVP increased by $644m, (compared to the 2005 – 2007
period where GVP decreased by $175m). The value of crops increased by $526m, livestock
products increasing by $95m and the value of slaughtered livestock increasing by $23m.
In the corresponding 2005 – 2007, period, there was a major change in this makeup of GVP.
In this period, overall GVP decreased by $175m, with the value of crops decreasing by $45m,
livestock products decreasing by $30m and the value of slaughtered livestock decreasing by
$100m.
Page 13 of 130
Local Government Shires
Four (4) Shires represent approximately 32% of the rural indebtedness at December 2009.
These Shires are set out below, and also include the percentage contributed to the dollar
growth of $3,241m for the 2007 – 2009 period.
Shires % of Debt % of Growth 2007 - 2009

Banana Shire Council 10% 18%
Central Highlands Regional Council 9% 11%
Dalby Regional Centre 8% 8%
Goondiwindi Regional Council 6% 7%
Comparison to RDQ 07 Survey
In comparing results reported within the RDQ 09 Survey to the RDQ 07 Survey, please be
aware that there may be minor differences in the number(s) reported in the 2009 Survey,
when compared to RDQ 07 Survey. The reason being that in the production of the RDQ 09
Survey, data maintained in respect of financial institutions that originally participated within a
previous survey and did not participate in the RDQ 09 Survey, that information was excluded
in the RDQ 09 Survey. With the introduction of new participants in the RDQ 09 Survey, the
impact of these changes was not material to the results of the survey, but will result in minor
variances between data originally reported and that now reported within RDQ 09.
Page 14 of 130
 Conclusion
The increase in debt appears to be in line with industry expectations.
The increase in the average dollar amount of debt carried per borrower is a reflection of the
increasing debt of borrowers in all sectors of the industries, particularly within the beef
industry. This is still consistent with the results of the 2005 – 2007 survey.
Over the recent period 2007 - 2009, the number of borrowers that have increased within the
industry approximates 5%, whilst the average level of debt carried has increased by 21%. In
the 2005 – 2007 period, the average debt per borrower increased by approximately 92%.
The soundness of the rating in debt reflects the financial institutions assessment of the
current market conditions and the economic influence of continuing high commodity prices in
certain industries.
The increase in debt together with an increase of GVP in the 2007 – 2009 period, may reflect
a reconsolidation of the industry, as in the period 2005 – 2007, the industry had been
impacted by two major natural climate effects experienced within that timeframe within
Queensland, being Cyclone Larry and the drought. In the 2007 – 2009 period the impact of
the drought has reduced with good rain being received over many parts of the state.
Throughout the 2007 - 2009 period, the areas declared for drought reduced from
approximately 65% in 2008 to approximately 35% in 2009, whilst in the 2005 – 2007 period,
approximately 60% of Shires were declared in drought throughout the whole period.
Page 15 of 130
ADDENDUM TO EXECUTIVE SUMMARY
SIZE OF DEBT
Movement In Debt 2007 – 2009

Table 1
Within Region
Movement in Rural Debt - 2007 to 2009
$800,000 311 Cape &Carpentaria

$'000 debt
$700,000 313 Central Nth

$600,000
314 Central Sth
$500,000
321 Eastern Downs
$400,000
331 Central Sth Coast
$300,000
$200,000 332 Tropical Nth Coast
$100,000 3121 West
$0 3122 Sth West
3221 Central
Regions 3222 Maranoa/Wst Dwn
Table 2
Within Industry –
Movement in Rural Debt ($'000) by

Beef
Industry 2007 to 2009
Cotton
2,500,000 Dairy
2,000,000 Grain
Grain/Grazing
1,500,000
Horticulture - Tree Crops
1,000,000
Horticulture - Vegetables
500,000
Intensive Livestock
0
Other
(500,000) Sheep/Wool
Sugar
Industry
Tobacco
(Re industry debt as reported in RDQ 07)
Page 16 of 130
Movement in Rural Debt ($'000)
by Industry 2007 to 2009
200,000
Marine Fishing
150,000
100,000 Forestry & Logging
50,000
Aquaculture
-
-50,000 Hunting & Trapping
Industry Services To Agriculture
(Re additional industry debt reported in RDQ 9 for the first time)
Movement In Rural Debt by Industry 1994 – 2009

Table 3
Value ($'000) 2009 2007 2005 2003 2001 1999

Beef 8,244,881 6,057,805 4,311,527 3,149,911 2,282,014 1,860,922
Cotton 1,004,246 1,148,528 870,725 830,655 694,353 611,821
Dairy 280,088 206,877 223,919 305,799 258,349 279,623
Grain 987,038 598,865 559,471 452,723 479,808 351,215
Grain/Grazing 911,048 1,035,128 779,231 509,959 486,307 513,685
Horticulture - Tree Crops 607,834 306,871 272,092 336,509 373,744 330,308
Horticulture - Vegetables 526,950 455,977 284,741 182,044 143,834 136,572
Intensive Livestock 459,023 382,958 300,799 246,010 209,436 197,645
Other 278,917 114,262 80,069 479,211 401,740 358,066
Sheep/Wool 93,545 112,543 129,664 122,342 112,715 162,844
Sugar 890,369 776,266 796,783 1,026,865 1,179,928 1,028,407
Tobacco - 87,221 63,292 64,662 41,330 40,642
Services To Agriculture 530,052 537,164 - - - -
Aquaculture 33,369 - - - - -
Forestry & Logging 53,362 - - - - -
Hunting & Trapping 2,259 - - - - -
Marine Fishing 158,990 - - - - -
Grand Total 15,061,972 11,820,465 8,672,315 7,706,691 6,663,556 5,871,749
Page 17 of 130
Value ($'000) 1998 1997 1996 1995 1994
Beef 1,496,115 1,672,247 1,735,456 1,421,908 1,428,433
Cotton 416,195 233,655 185,738 153,170 131,069
Dairy 263,385 255,941 212,433 213,691 192,445
Grain 376,959 364,211 350,835 212,569 286,190
Grain/Grazing 504,772 396,849 598,633 552,874 466,241
Horticulture - Tree Crops 226,235 255,657 219,004 194,205 162,427
Horticulture - Vegetables 199,909 122,725 107,599 86,935 82,572
Intensive Livestock 252,206 119,107 111,357 116,084 129,620
Other 526,862 360,976 282,920 206,560 138,914
Sheep/Wool 187,316 212,498 250,742 350,687 321,098
Sugar 831,181 824,612 663,444 555,404 512,222
Tobacco 3,928 7,057 5,169 4,581 23,240
Grand Total 5,285,062 4,825,535 4,723,330 4,068,668 3,874,471
RATING
Movement 2007-2009
Table 4
% Number of % Number of
Category Borrowers - 2009 Borrowers - 2007
A 49.5% 50.1%
B+ 39.1% 18.3%
B1 10.2% 30.5%
B2 0.8% 0.8%
C 0.4% 0.2%
Table 5
Total debt as per Total debt as per % of Total Debt % of Total Debt
Category RDQ 09 Survey RDQ 07 Survey RDQ 09 Survey RDQ 07 Survey
$'000 $'000
A 9,086,010 7,181,970 60.32% 60.76%
B+ 3,429,457 2,506,891 22.77% 21.21%
B1 1,849,455 1,877,699 12.28% 15.89%
B2 428,958 134,883 2.85% 1.14%
C 268,092 119,023 1.78% 1.01%
Total 15,061,972 11,820,465 100% 100%
Page 18 of 130
Table 6
The movement of borrowers during the period 2007 – 2009 in each of the debt ratings category
is portrayed as follows.
Category Number Number % Value Value %
Of Borrowers $'000
A 296 3.8% 1,904,040 26.5%
B+ 3,548 124.6% 922,567 36.8%
B1 (3,080) (64.9)% (28,244) (1.5)%
B2 (1) (0.6)% 294,075 218.0%
C 42 133.9% 149,069 125.2%
Total 805 5.2% 3,241,507 27.4%
PERFORMANCE
Table 7
The movement of borrowers in the period 1995 – 2009 (1995 was the first year that all
categories of rating were consistently applied) is detailed as follows:
Category Number Number % Value Value %

Of Borrowers $'000
A 564 7.5% 6,873,051 310.6%
B+ (250) (3.8)% 2,112,558 160.4%
B1 96 6.1% 1,550,611 518.9%
B2 (158) (55.0)% 329,596 331.7%
C (214) (74.4)% 127,488 90.7%
Total 38 0.2% 10,993,304 270.2%
COMPARISON OF DEBT TO PRODUCTION VOLUME
Table 8
Detailed below for comparison purposes, is the gross loan indebtedness identified by the
survey over the 1994 – 2009 years, together with the GVP as per the ABS for the period 1994 -
2001. Forecast of GVP as produced by the DEEDI have been utilised for the period 2003 -
2009.
Page 19 of 130
Year Total Debt Debt as % GVP Yearly % Yearly %
Increase in
$'000 of GVP $'000 Debt Increase in GVP
2009 15,061,972 168.5% 8,939,000 27.42% 7.76%
2007 11,820,465 142.5% 8,295,000 36.30% (2.07)%
2005 8,672,315 102.4% 8,470,000 12.53% 16.94%
2003 7,706,691 106.4% 7,243,000 15.65% (0.04)%
2001 6,663,555 92.0% 7,245,627 6.32% 7.02%
2000 6,267,652 92.6% 6,770,652 6.74% 6.13%
1999 5,871,748 92.0% 6,379,713 11.10% 8.96%
1998 5,285,061 90.3% 5,854,874 9.52% 3.13%
1997 4,825,535 85.0% 5,677,093 2.16% 6.72%
1996 4,723,330 88.8% 5,319,670 16.09% (2.68)%
1995 4,068,668 74.4% 5,466,416 5.01% 4.98%
1994 3,874,471 74.4% 5,206,927
(The debt for the 2000 year has been calculated, based on a prorata movement between the 1999 and 2001 years).
Comparison of Total Debt V GVP

$'000
16,000
Thousands
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Total Debt
GVP
2009 2007 2005 2003 2001 2000 Axis

1999 Title
1998 1997 1996 1995 1994
Page 20 of 130
Comparison Debt & GVP
1995 - 2009
20,000,000
15,000,000
10,000,000
$ Value
5,000,000
-
1994
1995
1996
1997
1998
1999
Total…
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Year
Total Debt GVP
Table 9
Pictured graphically, it can be seen that the increase in debt is approximately three times
(300%) of the increase in the GVP over the same period of time.
Movement in Debt & GVP

1994 - 2009
20,000,000
10,000,000
Debt '94-'09 0
GVP '94-'09
Debt '94-'09
GVP '94-'09
Page 21 of 130
Table 10
The GVP ($m) for the years 1994 – 2009, as per the ABS and DEEDI is broken down as
follows:
Amount ($'000) 2009 2007 2005 2003 2001 2000

Crops 4,281 3,755 3,800 3,375 3,391 3,557
Livestock Slaughtered 4,153 4,130 4,230 3,357 3,368 2,668
Livestock Products 505 410 440 511 486 546
Total 8,939 8,295 8,470 7,243 7,246 6,771
Amount ($'000) 1999 1998 1997 1996 1995 1994

Crops 3,542 3,349 3,509 3,110 2,970 2,542
Livestock Slaughtered 2,270 1,881 1,614 1,643 1,916 2,152
Livestock Products 567 625 554 567 580 513
Total 6,380 5,855 5,677 5,320 5,466 5,207
The percentage increase in GVP over the period 1994 – 2009 is as follows:
Increase in GVP 1994 - 2009 %

Crops 68.4%
Livestock Slaughtered 93.0%
Livestock Products (1.6%)
Total Percentage Increase 71.7%
Page 22 of 130
EXAMINATION OF DEBT BY REGION AND INDUSTRY
Table 11
The following table and graph details the movement in debt from 1994 through to 2009.
1994 1995 1996 1997 1998 1999
Region
($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
311 Cape & Carpentaria 42,533 57,223 58,535 61,445 31,222 28,887
313 Central North 262,375 239,609 298,934 366,365 265,125 276,412
314 Central South 205,696 203,061 233,507 240,340 189,051 202,728
321 Eastern Downs 548,972 532,410 577,166 600,989 629,475 739,831
331 Central South Coast 886,302 1,053,662 1,148,707 1,197,733 1,276,704 1,553,777
332 Tropical North Coast 778,557 841,726 997,505 1,086,896 1,242,480 1,337,625
3121 West 77,156 101,618 100,546 73,715 107,467 117,806
3122 South West 126,249 100,665 151,394 129,173 83,894 83,709
3221 Central 386,778 426,482 552,639 536,911 546,376 593,369
3222 Maranoa / Western Downs 559,853 512,212 604,397 531,961 913,268 937,605
Total 3,874,471 4,068,668 4,723,330 4,825,527 5,285,062 5,871,749
2000 ** 2001 2003 2005 2007 2009

Region
($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
311 Cape & Carpentaria 46,024 63,160 125,533 116,001 165,344 255,231
313 Central North 282,815 289,218 578,645 618,229 879,492 1,158,580
314 Central South 205,186 207,644 256,304 307,181 593,755 683,250
321 Eastern Downs 795,232 850,633 798,918 753,683 1,236,752 1,527,340
331 Central South Coast 1,601,523 1,649,269 1,547,492 1,946,787 2,526,129 3,111,969
332 Tropical North Coast 1,473,710 1,609,795 1,426,125 1,312,304 1,798,284 1,963,224
3121 West 114,968 112,131 149,449 195,977 307,000 419,253
3122 South West 77,821 71,933 116,388 107,435 150,966 280,971
3221 Central 654,182 714,996 1,054,282 1,437,677 1,762,523 2,559,604
3222 Maranoa / Western Downs 1,016,191 1,094,777 1,653,555 1,877,039 2,400,220 3,102,550
Total 6,267,652 6,663,556 7,706,691 8,672,315 11,820,465 15,061,972
Page 23 of 130
** Debt for the 2000 year has been calculated based on a pro rata movement between the 1999 and 2001 years.
Debt By Region 1994-2009
3,500,000
3,000,000
2,500,000
$'000
2,000,000
1,500,000
1,000,000
500,000
-
19941995
19961997
1998 1999
2000 **2001
2003 2005
2007 2009
311 Cape & Carpentaria 313 Central North
314 Central South 321 Eastern Downs
331 Central South Coast 332 Tropical North Coast
3121 West 3122 South West
3221 Central 3222 Maranoa / Western Downs
Page 24 of 130
The following provides detailed information as to the movement of debt, by industry within region, from 1994 to 2009.
311 313 314 321 331 332 3121 3122 3221 3222 Grand Total
Movement 1994-09 ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
Beef 195,019 814,118 512,496 258,362 1,049,401 602,118 370,528 206,955 1,675,052 1,132,400 6,816,448
Cotton - (35) (876) 184,499 14,961 (1,362) - (876) 134,737 542,129 873,177
Dairy (194) 6,098 (12) 25,261 51,389 5,189 49 154 (1,439) 1,149 87,643
Grain 189 6,063 (8,860) 128,295 86,726 4,894 0 (8,831) 145,788 346,584 700,848
Grain/Grazing (5,891) (4,794) 1,920 32,402 (35,174) (42,681) (11,769) 1,128 97,921 411,745 444,807
Horticulture - Tree crops 10,712 54,019 (15) 34,910 253,514 80,738 (98) 227 21,487 (10,087) 445,407
Horticulture - Vegetables 83 12,837 - 90,977 254,254 76,249 - - 5,516 4,463 444,378
Intensive Livestock (20) 8,785 (921) 79,650 180,221 15,401 (45) 50 6,730 39,552 329,403
Other 709 5,120 (1,567) 22,731 70,837 21,183 3,492 (1,007) 16,599 1,906 140,003
Sheep/Wool (1,656) (16,091) (34,074) (15,601) (15,959) (5,471) (23,115) (45,563) (7,282) (62,741) (227,553)
Sugar 5,265 1,109 (61) 694 13,585 290,974 - (122) 3,434 63,267 378,147
Tobacco (299) (12,816) - (1,448) (7,338) (880) - 0 (209) (250) (23,240)
Services To Agriculture 4,390 14,900 9,158 129,736 155,378 80,485 2,785 2,171 67,188 63,861 530,052
Marine Fishing 1,274 3,677 - 4,452 91,547 44,389 226 40 6,211 7,175 158,990
Forestry & Logging - 563 244 3,410 46,495 566 45 - 1,007 1,032 53,362
Aquaculture 3,116 2,650 - - 14,858 12,659 - - 86 - 33,369
Hunting & Trapping - 1 122 38 972 230 - 381 - 515 2,259
Total 212,698 896,205 477,554 978,368 2,225,667 1,184,681 342,097 154,708 2,172,826 2,542,697 11,187,501
Page 25 of 130
Movement in Debt by Region By Industry 1994-2009
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
$'000
200,000
0
(200,000) 311
313
314
321
331
332
3121
3122
3221
3222
Beef Cotton Dairy Grain Grain/Grazing Horticulture - Tree crops Horticulture - Vegetables Intensive Livestock Other Sheep/Wool Sugar Tobacco
Page 26 of 130
Our review of debt over the past fourteen years indicates that debt has increased significantly
in Maranoa/Western Downs ($2,543m), Central Sth Coast ($2,226m), Central ($2,173m), and
Tropical North Coast ($1,185m).
Region 3222 – Maranoa / Western Downs
Growth in debt over the period 1994 – 2009 totalled $2,543m (1994 - 2007: $1,751m), with the
movement from 2007 to 2009 totalling $702m (2005 – 207: $467m).
The major movements in debt in the 2007 – 2009 period were as follows:
Beef $367m (1994 - 2009: 1,132m)

Grain $204m (1994 - 2009: $347m)
Region 331 - Central South Coast
The increase in debt of $2,226m over the fourteen-year period 1994 – 2009 is reflected via an
increase in debt for the period 1994 – 2001 of $763m, which was decreased by a reduction in
debt of ($102m) for the 2001 – 2003 period, an increase in debt of $399m for the 2003 – 2005
period, $430m for the 2005 – 2007 period and $586m for the 2007-2009 period.
In the period 2007 – 2009, the debt increase of $586m was reflected in major industry
increases being beef of $155m, horticulture- tree crops of $176m and a decrease in cotton of
($167m).
The increase over the 1994 – 2009 periods incorporated the following major industries:
Beef $1,049m (1994 – 2007: $895m)

Horticulture – Tree Crops $254m (1994 – 2007: $77m)
Horticulture – Vegetables $254m (1994 – 2007 : $193m)
Page 27 of 130
Region 3221 – Central
The Central region debt increased by $2,173m (2007: $1,320m) over the period 1994 – 2009,
with the major increases being:
1996 year - $126m

2000 year - $61m
2003 year - $339m
2005 year - $384m
2007 year - $270m
2009 year - $797m
In the 1994 – 2009 period, the major increase was Beef $1,675m (1994 – 2007: $1,053m) and
Grain $146m (1994 – 2007: $67m), with the Beef industry being the major contributor to the
increase in debt over the period 2007 – 2009.
Region 332 – Tropical North Coast
Increase in debt during the period 1994 – 2009 totalled $1,185m (1994 – 2007: $910m), with a
reduction in debt occurring in the period 2003 – 2005 of ($113m).
The increase in the period 1994 – 2009 consisted of:
Sugar $291m (1994 - 2007: $262m)

Beef $602m (1994 - 2007: $546m)
The major industries which incurred an increase/(decrease) in debt in the 2007 – 2009 period
were:
Beef $56m (2005 – 2007: $310m)

Sugar $29m (2005 – 2007: decrease ($26m))
Page 28 of 130
Region 321 – Eastern Downs
Increase in debt over the period 1994 – 2009 was $978m (1994 - 2007: $595m), with the main
influences being:
Beef $258m (1994 - 2007: $182m)
Cotton $184m (1994 - 2007: $184m)
Grain $128m (1994 - 2007: $86m)
The major industries which incurred an increase/(decrease) in debt in the 2007 – 2009 period
were:
Horticulture – Tree Crops $50m (2005 -2007: decrease ($5m))

Beef $76m (2005 - 2007: $136m)
Region 311 – Cape & Carpentaria

Region 313 – Central North
Region 314 – Central South
Region 3121 – West
Region 3122 – South West
The five regions noted above represent approximately two thirds of the total area of the State,
but only account for debt of $2,797m (2007: $2,022m), or 19% (2007: 18%) of the total debt.
The period 1994 – 2009 showed an overall increase in debt of $2,083m (1994 –
2007:$1,307m).
Page 29 of 130
PART 1 – DEBT ANALYSIS
COMMENTARY ON MOVEMENT IN DEBT

Movement in commodity price index, from 1994 to 2009, have been obtained for the following major
industries:
 Beef
 Wool
 Cotton
 Sugar
 Wheat
Index movements have also been obtained for:
 Agricultural index, and

 Commodities index.
In respect of the above industries for which information has been obtained in relation to the price
index, this has been compared to the movement in the rating of debt from the RDQ 2007 (RDQ 07)
survey to the RDQ 2009 (RDQ 09) survey.
In relation to those industries for which we were not able to determine a comparative price index, the
movement in debt rating has been reviewed as per the previous paragraph.
Representatives of industry bodies and Moore Stephens have provided comments as to the reasons
for the movement in debt rating compared to the movement in the price index, where appropriate.
Page 30 of 130
Set out graphically below, is the overall movement in debt from 1994 – 2009.
% Movement Gross Rural Debt &

Agricultural Index
1994-2009
50.0%
0.0%
-50.0%
Debt Years
Index
Movement in Debt by Rating

2007-2009
A
4,000,000
B+
$'000
2,000,000
B1
0
B2
(2,000,000)
C
Debt Rating
Total
In a majority of instances, in the RDQ 07 survey a correlation between the movement in the price
index, the movement in gross rural debt and the individual industry movement in debt rating, was
observed re RDQ 07. This correlation is still reflected in the RDQ 09 results.
Page 31 of 130
Beef
% Movement Gross Rural Beef Debt & Index

1994-2009
50.0%
Debt
0.0% Index
-50.0%
Years

2007-2009
2,500,000
2,000,000
A
1,500,000
B+
$'000
1,000,000 B1
500,000 B2
0 C
Debt Rating - Beef Total
Amount ($'000) Loan Rating 2009 2007

Region A B+ B1 B2 C Grand Total Grand Total
311 Cape & Carpentaria 140,650 46,906 11,202 18,706 - 217,464 129,459
313 Central Nth 480,896 297,963 134,425 53,239 5,378 971,901 694,183
314 Central Sth 436,579 119,932 86,145 1,407 - 644,062 430,246
321 Eastern Downs 181,466 101,409 75,574 14,751 13,158 386,358 310,104
331 Central Sth Coast 821,828 281,955 241,811 29,994 6,670 1,382,259 1,227,734
332 Tropical Nth Coast 513,200 132,932 54,088 25,742 24,545 750,507 694,863
3121 West 270,323 74,368 20,061 41,131 4,550 410,433 267,973
3122 Sth West 157,459 64,910 23,923 3,096 118 249,506 59,368
3221 Central 1,428,836 304,401 94,271 54,838 6,700 1,889,046 1,267,298
3222 Maranoa/Wst Dwn 719,125 393,176 199,059 25,179 6,807 1,343,346 976,578
Grand Total 5,150,364 1,817,952 940,558 268,082 67,926 8,244,881 6,057,805
Page 32 of 130
Comments Highlights:
Since 1994, beef debt has increased four hundred and thirty eight percent (438%)  Increase in debt
to reach $8,244 million, compared to the RDQ 07 Survey, whereby beef debt had since 1994: 438%
increased by three hundred and twenty four percent (324%).  Increase in debt
2007 – 2009:
$2,187m being a
In 2007 – 2009 period, debt increased by $2,187m representing an 36% increase of 36% increase
the 2007 debt, as compared to 2005 – 2007, when debt increased by 41%.
 Major increase in
debt within three (3)
Beef debt represents 55% of total RDQ 09 debt as compared to 2007 where it Regions
represented 54% and 2005, where it represented 50% of total debt. The number of  Four Shires
beef borrowers increased by 904 borrowers and represents 36% of total rural represent 38% of
Beef debt
borrowers at 2009, as compared to 35% of total rural borrowers at 2007.
Major increase/(decrease) in debt in 2007 – 2009,was seen in the following Regions:
313 Central North $278m (2007: $178m)

3222 Maranoa / Western Downs $367m (2007: $218m)
3221 Central $622m (2007: $249m)
Of the increase in debt from 2007 – 2009, „A‟ category debt represented increase of 53%. In 2005 –
2007 “A‟ category debt represented 65% of increase in debt. The „B+‟ category debt increased by
23% and the „B1‟ category debt increased by 10%
38% of debt in the Beef industry is represented in four (4) Shires (2007: four Shires represented
33%), being:
2009 2007
Shire $'000 $'000
Banana Shire Council 1,128,340 653,633
Central Highlands Regional Council 985,257 722,473
Barcaldine Regional Council 533,203 255,346
Roma Regional Council 459,488 378,614
Page 33 of 130
In the conduct of RDQ 09, for the first time, details of Sub Industry Classification was able to be
obtained.
The industry debt at 2009 of $8,244m consists of:
Sub Industry Total ($’000)

Beef Cattle Farming 7,671,315
Sheep-Beef Cattle Farming 572,767
Beef Cattle Feedlots (Specialised) 799
Grand Total 8,244,881
Industry Comment – AgForce
Main reasons for increase in debt in 2007-08

 Rising costs of production
 Cost of feed during drought very high, especially nutritional supplements
 Exorbitant road freight costs
 Rising vehicle registration fees
 Increases to electricity prices
 Exorbitant increases to insurance premiums
 Increased council rates bills
 Subdued commodity prices over the review period – prices have not grown at the same level as
input costs have
 Drought resulting in destocking and therefore lower incomes to service debts
 Destocking and then restocking later meant increased debt load as it is more expensive to
restock than to retain stock. Also, some destocking funds have been used to sustain core
breeding herds during drought
 Drought encouraged more farmers to run cattle rather than plant grain crops. Change in
production focus may mean debt associated with previous grain enterprises is now recorded as
cattle debt
 Encouragement of farmers to capitalise on high land values by increasing their borrowings
 The global financial crisis has led to a tightening of banks’ lending criteria and a calling in of
many debts. Interest rate rises have also meant greater interest repayments, affecting cash
reserves
 Capital gains in rural areas have plateaued
Page 34 of 130
 Region-specific comments
 Severe floods resulting in stock losses and extensive pasture damage, particularly in the Gulf
and Central Queensland regions
Page 35 of 130
Wool
% Movement Gross Rural Beef Debt & Index

1994-2009
50.0%
Debt
0.0% Index
-50.0%
Years

2007-2009
5,000
0 A
(5,000) B+
$'000
(10,000)
B1
(15,000)
(20,000) B2
(25,000)
C
Total
Debt Rating - Sheep / Wool

313 Central Nth 3,122 - 121 - - 3,244 3,269
314 Central Sth 17,144 3,267 3,612 - - 24,023 23,479
321 Eastern Downs 5,296 3,437 1,815 1,459 - 12,007 10,963
331 Central Sth Coast 119 1,864 3,590 - 152 5,726 36,917
332 Tropical Nth Coast - - - - - - 1,518
3121 West 624 199 249 - - 1,071 1,142
3122 Sth West 15,635 4,662 232 853 2,984 24,366 16,759
3222 Maranoa/Wst Dwn 14,975 6,403 1,729 - - 23,108 18,497
Grand Total 56,916 19,833 11,348 2,312 3,137 93,545 112,543
Page 36 of 130
In the conduct of RDQ 09, for the first time, details of Sub Industry Classification Highlights:
was able to be obtained.  Debt fallen 71%
since 1994.
The industry debt at 2009 of $93m consists of:  Debt decreased
from 2007 by $19
million
Sheep Farming 39,551  Four Shires
Sheep Farming (Specialised) 53,994 represent 55% of
Grand Total 93,545 Wool debt
Comments
Over the period 1994 – 2009, indebtedness by borrowers has fallen from a level of $321m in 1994 to
$94m in 2009; percent wise, having fallen by 71% over the 1994-2009 period.
Debt represents 0.6% of total RDQ 09 debt (2007: 1%).
Debt decreased in the 2007 – 2009 period by ($19m) (2005 – 2007: decrease ($17m)).
This decrease in debt is reflected in the „A‟ rated debt of $20m, and with corresponding decrease in
„B1 and B2‟ rated debt of $5m.
55% of debt in the Wool industry is represented in four Shires (2007: 59%):
2009 2007
Shire $'000 $'000
Barcaldine Regional Council 20,237 13,933
Paroo Shire Council 12,647 8,533
Balonne Shire Council 10,803 4,374
Page 37 of 130
Industry Comment – Agforce
 The number and size of loans have both decreased which indicates that industry rationalisation
has seen those remaining producers as being good operators who understand how to manage
drought and volatile commodity prices
 This is also reflected in the high amount of ‘viable’ debt that is in the industry and the dramatic
increase in B+ debt rating from 2007
 Drought and supplementary feeding costs have been a continuing financial burden on
producers, however recent favourable climatic conditions will see this easing
 Increasing sheep meat prices over the past 18 months have seen a moderate selloff of non-
breeding stock
 Region 321 which produces the majority of fine wool in Qld is showing that depressed fine wool
markets are having an effect with a significant increase in overall debt and a dramatic increase in
B2 debt rating that is reflecting those traditional wool growers who are continuing be paid very
poorly for their product
Page 38 of 130
- Cotton
Cotton - % Movement Gross Rural Debt &

Cotton Index
1994-2009
100.0%
50.0%
Debt
0.0%
-50.0% Index
-100.0%
Years

2007-2009
200,000
150,000
100,000
A
50,000
0 B+
(50,000)
$'000
(100,000) B1
(150,000)
B2
(200,000)
(250,000) C
(300,000)
Total
Debt Rating - Cotton

321 Eastern Downs 143,475 45,123 32,995 840 222,433 222,028
331 Central Sth Coast 15,563 4,155 6,844 26,562 193,067
332 Tropical Nth Coast 1,037 1,037 -
3221 Central 109,688 31,757 18,885 2,514 14 162,858 127,726
3222 Maranoa/Wst Dwn 216,656 114,418 79,258 51,832 129,192 591,356 605,707
Grand Total 486,418 195,453 137,982 55,186 129,205 1,004,246 1,148,528
Page 39 of 130
Highlights:
Comments
Cotton debt represents 7% of total RDQ 09 debt (2007: 10%).  Cotton debt of
$1,004 million
represents 7% of
In the 2007 – 2009 period debt has decreased by $144m, whilst in the 2005-2007 total debt
period, debt increased by $278m.  Debt fell from 2007

by $144 million
The major decrease in debt occurred in the Central South Coast Region (331) of  Four Shires
$167m, representing 115% on the total decrease in debt. represent 78% of
Cotton debt
The decrease in debt from 2007 to 2009 represents an decrease of 13%, whilst in
the 2005 – 2007 period debt increased by 32%.
78% of the debt in the Cotton industry resides in four Shires:
2009 2007
Shire $'000 $'000
Balonne Shire Council 265,576 327,567
Goondiwindi Regional Council 234,017 183,663
Dalby Regional Centre 155,036 168,356
Toowoomba Regional Council 124,042 99,326
Industry Comment – Queensland Farmers’ Federation
The total debt of Queensland cotton farmers declined by 13 percent between 2007 and 2009 and this
is consistent with the industry trends that saw production severely curtailed during the drought with
both dryland and irrigated production reduced. The gross value of Queensland‟s cotton crop was an
historic low of only $79 million in 2007-08, and this was when industry debt peaked at $1,148 million
across 573 farmers. Cotton output in 2009-10 is estimated to have a gross value of $355 million,
Page 40 of 130
compared to $340 million in 2008-09 and these more normal sized crops are providing many farmers
with the opportunity to reduce debt levels.
The improvement now underway for the Queensland cotton industry because of better seasonal
conditions and replenished water storages will continue to flow through to higher cash incomes in
2010-2011. The average cotton farm debt of $2.5 million reflects the financing requirements of a
commercial scale cotton farm.
Page 41 of 130
- Sugar
Sugar - % Movement Gross Rural Debt &

Sugar Index
1994-2009
50.0%
.0%
(50.0%)
Years
Debt Index

2007-2009
120,000
100,000
80,000
$'000
60,000
40,000
20,000
0
A B+ B1 B2 C Total Debt Rating - Sugar

Region A B+ B1 B2 C Grand Grand Total
Total
311 Cape & Carpentaria 7,262 6,935 629 - 22 14,848 15,762
313 Central Nth 14,570 3,592 1,043 - - 19,205 20,885
321 Eastern Downs 694 - - - - 694 -
331 Central Sth Coast 60,777 11,659 10,536 2,307 900 86,178 64,235
332 Tropical Nth Coast 492,898 171,082 37,109 727 344 702,159 673,576
3221 Central 4 3,599 - - - 3,602 1,808
3222 Maranoa/Wst Dwn 243 - 63,438 - - 63,681 -
Grand Total 576,448 196,866 112,755 3,033 1,266 890,369 776,266
Page 42 of 130
Sugar debt represents 6% of total RDQ 09 debt (2007: 7%)  Sugar debt of $890
million represents
In the period 1994 – 2003, the sugar rural debt increased by $515m (2001: $668m). 6% of total debt
In the 2003 – 2005 period, the debt decreased by ($230m).  Debt increased from
2007 by $114
million
In the period 2005 – 2007, the debt decreased by ($20m); in the period 2007 –
2009, the debt increased by $114m.  Region 3222
accounts for 56% of
increase in debt
Region 3222, Maranoa / Western Downs, accounts for approximately 56% of the from 2007
increase of $114m in debt between the 2007 and 2009 surveys. The same region in  Three Shires
2005 – 2007 accounted for a decrease in debt of ($20m). represent 63% of
Sugar debt
Three Shires represent approximately 63% of debt.
Shire 2009 2007

Burdekin Shire Council 290,490 269,221
Mackay Regional Council 174,003 148,170
Isaac Regional Council 95,907 84,253
Industry Comment – Canegrowers
The latest Rural Debt Survey shows that cane growers‟ debt has
increased by 14% since 2008. This increase in debt has occurred
at a time when sugarcane growing has consolidated; in 2002 we
estimate there were around 6500 cane growing enterprises, that
figure is now around 3500. This consolidation has therefore taken
place without incurring significantly increased levels of debt.
It is noted that 65% of industry debt is rated A and 87% A or B+

and that a remarkable 94% of borrowers have debt rated A or B+. This is an increase from 67% of
debt in the A and B+ rating in 2007 and reflects the conservative nature of many sugarcane
enterprises. Even while expanding, there is still a strong desire to retain asset backing. The
improvement in debt rating since 2007 is no doubt due to improved returns, which are likely to
continue into 2010
In the future, it is considered that bank lending to the sugarcane industry can continue to be based on
assured cash flows. This is because cane growers are now able to forward price a proportion of their
Page 43 of 130
product up to three years in the future. This provides the basis for ensuring that that proportion of the
crop can be produced at cost or above and allows a strong case to be made when loans are sought.
Page 44 of 130
- Grain
Wheat - % Movement Gross Rural Debt &

Wheat Index
1994-2009
100.0%
0.0%
-100.0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Years
Debt Wheat Index

2007-2009
400,000
300,000
200,000
$'000
100,000
0
Debt Rating - Grain
A B+ B1 B2 C Total

311 Cape & Carpentaria 434 - - - - 434 531
313 Central Nth 2,316 5,920 - - - 8,235 9,304
314 Central Sth - 5 - - - 5 -
321 Eastern Downs 172,916 46,697 22,037 6,437 1,260 249,346 206,668
331 Central Sth Coast 75,565 35,786 5,452 362 750 117,916 58,161
332 Tropical Nth Coast 11,454 2,695 7,336 - - 21,485 16,760
3122 Sth West - 34 - - - 34 433
3221 Central 108,117 36,595 32,056 832 29 177,629 98,852
3222 Maranoa/Wst Dwn 327,467 34,756 42,529 7,201 - 411,954 208,156
Grand Total 698,268 162,488 109,411 14,833 2,039 987,038 598,865
Page 45 of 130
Comments
Highlights:
Grain debt represents 7% of total RDQ 09 debt (2007: 5%)  Debt of $987 million
represents 7% of
total debt
In 2007 – 2009 debt increased by $388m being an increase of 65%, compared to
 Debt increased from
2005 – 2007, when the increase in debt represented 7% of the increase in grain 2007 by $389
debt. million
 Three Regions
From 1994 to 2001, debt on average increased by 13%, whilst since 2001, debt account for 88% of
increase in debt
has progressively increased on average by 15%, with the increase in 2007 – 2009 from 2007
period being 65%.
 Four Shires
represent 62% of
Major increase (decrease) in debt in the 2007 – 2009 period occurred within the Grain debt
following regions:
Region 3222 Maranoa/Wst Dwn $204m (2007: Increase $23m)

Region 3221 Central $79m (2007: Decrease ($34m))
Region 331 Central Sth Coast $60m (2007: Decrease ($69m))
The main increase in debt in 2007 – 2009 period is reflected in „A ‟ rated debt of $243m.
Four Shires account for 62% of the total „Grain‟ debt:
2009 2007
Shire $'000 $'000
Dalby Regional Council 247,695 156,257
Page 46 of 130
In the conduct of RDQ 09, for the first time, details of Sub Industry Classification was able to be
obtained.
The industry debt at 2009 of $987m consists of:

Grain Growing 573,168
Other Grain Growing 413,871
Grand Total 987,038
(Note: „Other Grain Growing‟, This class consists of units mainly engaged in growing cereal or coarse
grains or other cereal crops (except rice). Also included are units mainly engaged in growing oilseeds,
pasture seeds, lupins, field peas or beans).
The data is relatively consistent with the seasons experienced across the main grain growing regions
of Queensland.
 Some of the decrease would be due to revaluation of land by the financial institutions
 Some growers only got to plant either a summer or winter crop due to rainfall
 All grain prices have been at almost historical lows for at least the last twelve months, making
some grain not worth selling at current prices
 Due to low returns some growers are probably having to extended borrowing further as “normal”
returns weren‟t gained.
 If prices continue further increase will be more than likely.
Page 47 of 130
- Dairy
Dairy - % Movement in Gross Rural Debt

1994-2009
50.0% Debt
0.0%
-50.0%
Years
Debt Rating - Dairy

2007-2009
80,000
70,000
A
60,000
50,000 B+
$'000
40,000 B1
30,000 B2
20,000
C
10,000
0 Total
Debt Rating - Dairy

311 Cape & Carpentaria - 337 - - - 337 283
313 Central Nth 5,768 3,972 - - - 9,741 12,662
314 Central Sth - - - - - - 686
321 Eastern Downs 39,169 17,646 10,749 300 6,218 74,081 61,105
332 Tropical Nth Coast 22,951 10,815 2,565 61 - 36,392 32,112
3121 West 49 - - - - 49 6
3122 Sth West 156 - - - - 156 156
3221 Central 8,457 1,097 402 884 5 10,845 6,824
3222 Maranoa/Wst Dwn 2,066 124 51 - - 2,241 1,151
Grand Total 170,032 53,606 34,032 15,586 6,833 280,088 206,877
Page 48 of 130
Comments
Highlights:
 Debt of $280 million

Dairy debt represents 2% of total RDQ 09 debt (2007: 2%)
represents 2% of
total debt
In the period 2007 – 2009, debt increased by $73m and in the period 2005 – 2007,
decreased by ($17m). In the period 1994 – 2009, debt has increased by $87m. 2007 by $73 million
 Increase in debt
In the period 2007– 2009 debt increased (decreased) within the following region: evenly spread
across highly rated
debt
Region 331 Central South Coast $54m (2007: Decrease ($27m))
 Four Shires
represent 44% of
The increase of debt in the 2007 – 2009 period of $73m, was spread evenly within Dairy debt
the „A‟ and „B+‟ representing an increase in these categories of 38% and 27%
respectively.
Four Shires account for approximately 44% of the „dairy‟

debt:
2009 2007
Shire $'000 $'000
Tablelands Regional Council 43,106 39,045
Logan City Council 27,418 15,048
Fraser Coast Regional Council 24,578 17,291
Page 49 of 130
Industry Comment – Queensland Dairy Farmers
The 2009, 2007, 2005, 2003 and 2000 Rural Debt Surveys have covered a period of significant
change for the dairy industry.
During this period the industry has experienced further structural change with farm numbers falling
and further rationalisation of the processing sector.
During the first three quarters of the last decade milk production has declined with impacts from
severe drought, poor price signals largely due to the loss of industry margins from the retail sector,
increasing input and operational costs and falling farm numbers.
In the last quarter of the decade price signals have started to increase with milk production falling
below the demand line for the Southern Queensland market. This improvement in price signals
combined with improved seasonal conditions across many dairying regions of Queensland over the
last two years has seen milk production starting to grow again after it reached a low of 485 million
litres in the 2007/08 financial year. It is forecast that the production this year will approximate 530
million litres, with a farm population of approximately 600 dairying enterprises.
The industry currently has a gross value of production of nearly $300 M and an estimated retail value
of production of $820 M and it is estimated that the industry value chain contributes up to 6,000 jobs
in Queensland.
With population and per capita growth forecasts for Queensland, there will be increased demand for
milk and dairy products. It is estimated that the Queensland dairy industry will need to grow
production by more then 25% to meet this growing demand over the next decade.
The latest dairy industry survey of dairy farmer, carried out at the end of 2008, presented that nearly
half of respondents had decreased their farm debt, just less then half had kept it the same and 9
percent had taken on more farm debt.
However many farmers took on more debt and investment on farm at the end of the 2008/09 financial
year with the improved seasonal conditions and cash flows, provision of accelerated depreciation
provisions, and some section of the dairy farm population receiving proceeds from co-operative
assets sales.
Page 50 of 130
The 2009 QRAA Debt Survey presents a slight increase debt for the Queensland dairy industry from
the previous survey period and a significant decrease in the total number of borrowers. This trend
would reflect the above mentioned factors, decline in overall farm numbers and the increase in size
and production of dairy enterprises which remain in the industry.
The average level of debt presented in the QRAA survey of $612,884 approximates that presented in
the 2009 Queensland Dairy Accounting Scheme report of $588,209 across 67 reference farms.
Page 51 of 130
- Grain / Grazing
Grain/Grazing -
% Movement in Gross Rural Debt
1994-2009 Debt
100.0%
50.0%
0.0%
-50.0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Years
2007
2008
2009
Grain / Grazing

2007-2009
20,000
0 A
(20,000)
B+
(40,000)
B1
$'000
(60,000)
(80,000) B2
(100,000) C
(120,000)
Total
(140,000)
Debt Rating - Grain/Grazing

311 Cape & Carpentaria 155 29 117 - - 301 160
313 Central Nth 1,512 7,864 741 - - 10,118 43,846
314 Central Sth 1,669 1,885 1,459 - - 5,013 92,241
321 Eastern Downs 32,607 42,846 26,682 4,170 210 106,515 95,610
331 Central Sth Coast 36,771 27,322 15,891 1,809 - 81,792 88,658
332 Tropical Nth Coast 7,571 1,655 71 - - 9,296 11,515
3121 West 925 104 90 - - 1,120 35,395
3122 Sth West 532 45 1,927 - - 2,504 71,325
3221 Central 112,635 52,391 7,849 - - 172,875 157,657
3222 Maranoa/Wst Dwn 264,967 138,284 95,552 11,297 11,414 521,514 438,722
Grand Total 459,344 272,425 150,378 17,276 11,625 911,048 1,035,128
Page 52 of 130
was able to be obtained.  Debt of $911 million
represents 6% of
total debt
The industry debt at 2009 of $911m consists of:
 Debt decreased
from 2007 by $124
Sub Industry Total ($000) million
Grain-Sheep or Grain-Beef Cattle Farming 910,938
Rice Growing 111
 Debt decrease
mainly in „A‟ rated
Grand Total 911,048
debt
Comments  Two Regions
account for major
movement in debt
Debt represents 6% of total RDQ 07 debt (2007: 10%).
 Four Shires
represent 64% of
Debt decreased in the 2007 - 2009 period by ($124)m (2005 – 2007: $256m). Dairy debt
The decrease in debt of $124m, is reflected in the major movement in „A‟ rated debt
of ($70m) and a lesser degree, to „B+‟ and „B1‟ rated debt of ($37m) and ($12m) respectively.
Major movements of debt occurred in the following regions
3222 Maranoa/Western Downs Increased $83m (2005 – 2007: $118m)

314 Central South Decreased ($87m) (2005 – 2007: $4m)
Four Shires account for 64% of the debt, being:
2009 2007
Shire $'000 $'000
Dalby Regional Centre 220,576 181,926
Page 53 of 130
The data is relatively consistent with the seasons experienced across the main grain growing regions
of Queensland.
 Some of the decrease would be due to revaluation of land by the financial institutions
 Some growers only got to plant either a summer or winter crop due to rainfall
 All grain prices have been at almost historical lows for at least the last twelve months, making
some grain not worth selling at current prices
 Due to low returns some growers are probably having to extended borrowing further as “normal”
returns weren‟t gained.
 If prices continue further increase will be more than likely.
Page 54 of 130
- Horticulture – Tree Crops
Horticulture Tree Crops - % Movement in

Gross Rural Debt
1994-2009
200.0%
0.0% Debt
-200.0%
Years

2007-2009
350,000
300,000 A
250,000
B+
200,000
$'000
150,000 B1
100,000 B2
50,000
C
0
(50,000) Total
Debt Rating - Horticulture - Tree Crops

311 Cape & Carpentaria 5,090 3,207 2,796 - - 11,093 7,902
313 Central Nth 38,819 13,968 7,878 1,712 951 63,328 40,730
321 Eastern Downs 57,681 5,878 10,889 - 1,619 76,067 25,818
332 Tropical Nth Coast 108,671 18,511 12,987 393 190 140,752 106,771
3122 Sth West 59 168 - - - 227 -
3221 Central 20,878 747 687 - - 22,311 14,370
3222 Maranoa/Wst Dwn 1,916 6,724 595 - - 9,236 3,291
Grand Total 397,965 109,708 82,566 14,121 3,475 607,834 306,871
Page 55 of 130
was able to be obtained.
represents 4% of
The industry debt at 2009 of $608m consists of: total debt
 Majority of increase
in debt of $301
Sub Industry Total ($’000) million occurred in
Apple and Pear Growing 40,554 Region 331
Citrus Fruit Growing 34,947
Fruit Growing n.e.c. 328,138  Four Shires
represent 33% of
Grape Growing 53,621
Horticulture – tree
Kiwifruit Growing 2,895
crop debt
Olive Growing 41
Other Fruit and Tree Nut Growing 135,461
Stone Fruit Growing 12,177
Grand Total 607,834
Comments
Debt represents 4% of total RDQ 09 debt (2007: 3%)
There has been an increase of $301m in the 2007 - 2009 debt level (2005 – 2007:$35m).
The majority of the increase in debt of $177m, occurred in Region 331 Central Sth Coast.
The increase in debt is reflected in the movement of the „A‟ rated debt, which increased by $208m,
and „B+‟ rated debt increased by $61m.
Four Shires account for 39% of the debt, being:
2009 2007
Shire $'000 $'000
Cairns Regional Council 57,539 39,813
North Burnett Regional Council 57,332 40,651
Cassowary Coast Regional Council 51,557 41,490
Page 56 of 130
Industry Comment – Growcom
Overall debt levels have remained fairly steady and seem to reflect industry trends rather than
dramatic events.
The overall number of borrowers has reduced to 792 from 980 in 2003, being a measure of
consolidation in the industry and associated departures from the land.
This trend has also seen an improvement in the quality of debt, and this may reflect the rationalisation
of properties; past investments in on-farm assets; and better management techniques in the industry.
However the level of non-performing debt continues to be an issue for growers, particularly as farm-
gate commodity prices have not increased to meet costs.
Fruit and vegetable growers are likely to experience further consolidation until prices improve.
Page 57 of 130
- Horticulture – Vegetables
Horticulture Vegetables -
1994-2009 Debt
100.0%
0.0%
-100.0%
Years

2007-2009
80,000
60,000 A
40,000 B+
$'000
20,000 B1
0 B2
(20,000)
C
(40,000)
Total
Debt Rating - Horticulture - Vegetables

Grand
Region A B+ B1 B2 C Grand Total Total
311 Cape & Carpentaria 91 11 - - - 102 1,518
313 Central Nth 10,248 8,391 389 39 - 19,067 14,434
321 Eastern Downs 38,277 52,472 7,133 2,094 5 99,980 83,839
331 Central Sth Coast 162,759 69,361 48,372 5,532 17,951 303,975 243,115
332 Tropical Nth Coast 66,658 24,048 1,153 153 - 92,012 98,430
3121 West - - - - - - -
3122 Sth West - - - - - - 138
3221 Central 6,753 43 - - - 6,796 3,578
3222 Maranoa/Wst Dwn 166 4,675 178 - - 5,019 10,925
Grand Total 284,951 159,002 57,224 7,817 17,955 526,950 455,977
Page 58 of 130
was able to be obtained.
represents 3% of
The industry debt at 2009 of $527m consists of: total debt

2007 by 13%
Cut Flower and Flower Seed Growing 15,444
Floriculture Production (Outdoors) 1,103  Majority of increase
Floriculture Production (Under Cover) 2,165 in debt occurred in
Nursery Production (Outdoors) 20,382 two Regions
Nursery Production (Under Cover) 1,055
Plant Nurseries 84,566
in debt in „B+‟ rated
Turf Growing 1,315 debt
Vegetable Growing 400,919
Grand Total 526,950  Four Shires
represent 51% of
Comments Horticulture –
vegetables debt
Debt represents 3% of total RDQ 09 debt (2007: 4%)
In the period 2007 - 2009, debt increased by $71m (2007 – 2009: $171m)
The majority of the increase / (decrease) occurred in the following regions:
Region 331 Central South Coast $61m (2005 – 2007: $68m)

Region 332 Tropical Nth Coast ($6m) (2005 – 2007: $55m)
Region 321 Eastern Downs $16m (2005 – 2007: $34m)
The increase in debt of $71m was in the main, represented by

an increase in „A‟ rated debt of $39m and „B+‟ rated debt of
$65m.
Four Shires represent 51% of debt.
2009 2007
Shire $'000 $'000
Bundaberg Regional Council 87,024 66,112
Lockyer Valley Regional Council 81,533 62,511
Southern Downs Regional Council 49,391 40,485
Page 59 of 130
Industry Comment – Growcom
Vegetables are included in this category, along with cut flowers and flower-seed growing; other fruit &
nut tree growing; and plant nurseries. While vegetables are only about 58% of the category it is
difficult to provide definitive commentary on the figures, however in general terms it seems that these
sections of the industry have also experienced considerable consolidation/rationalisation since 2007.
With almost 200 less borrowers over the period, the data indicates that those left in the industry have
made substantial improvements to their quality of debt.
However the high level of unviable borrowings (B1 & B2) means that, like fruit growers, the vegetable
industry is facing years of further consolidation unless prices can improve, or productivity can be
increased.
Page 60 of 130
- Intensive Livestock
Intensive Livestock -
1994-2009
Debt
200.0%
0.0%
1995
1996
-200.0%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Years
Intensive Livestock

2007-2009
100,000
A
50,000 B+
$'000
B1
0
B2
(50,000) C
Total
Debt Rating - Intensive Livestock

311 Cape & Carpentaria - 27 - - - 27 6,208
313 Central Nth 5,653 4,696 1,836 - - 12,184 9,280
314 Central Sth 178 145 - - - 323 787
321 Eastern Downs 52,717 50,229 16,961 3,871 - 123,778 106,963
331 Central Sth Coast 150,707 57,170 12,634 13,045 4,460 238,016 163,369
332 Tropical Nth Coast 5,771 8,344 8,542 - - 22,656 14,325
3121 West 33 0 - - - 33 131
3122 Sth West 606 103 - - - 709 447
3221 Central 8,783 6,069 126 - - 14,977 15,445
3222 Maranoa/Wst Dwn 25,073 18,340 1,653 1,255 - 46,320 66,003
Grand Total 249,519 145,123 41,752 18,170 4,460 459,023 382,958
Page 61 of 130
Debt represents 3% of total RDQ 09 debt (2007: 3%)  Debt of $459 million
represents 3% of
total debt
Total debt increased in the 2007 - 2009 period by $76m (2005 – 2007: $82m)
2007 by 20%
The increase in debt occurred in Region:
in debt occurred in
331 Central Sth Coast $75m two Regions
321 Eastern Downs $17m
in debt in „B+‟ rated
For the first time, details of Sub Industry Classification has been obtained. debt
 Four Shires
The industry debt at 2009 of $459m consists of: represent 48% of
Horticulture –
Sub Industry Total ($’000) vegetables debt
Beekeeping 270
Horse Farming 65,775
Livestock Farming n.e.c. 46,272
Other Livestock Farming n.e.c. 31,664
Pig Farming 111,066
Poultry Farming (Eggs) 70,003
Poultry Farming (Meat) 133,974
Grand Total 459,023
The increase in debt of $76m was in the main, represented by

an increase in „A‟ rated debt of $9m and „B+‟ rated debt of
$97m and a decrease in „B1‟ rated debt of ($44)m.
Five Shires represent 48% of the debt.
2009 2007
Shire $'000 $'000
Redland City Council 53,433 29,099
Southern Downs Regional Council 35,510 19,814
Scenic Rim Regional Council 30,944 16,984
Page 62 of 130
Industry Comment – Queensland Farmers’ Federation
The twenty percent rise in farm debt to $459 million carried by the intensive livestock sector in
Queensland is in line with the overall trend in Queensland agriculture and reflects the general
confidence in the steady expansion of these industries, especially the poultry sector. The number of
farm borrowers in this category has declined slightly to 458 and this likely reflects some consolidation
in the pig industry which is partly offset by continuing growth of the chicken meat industry. The
average farm debt in the intensive livestock sector has been in an upward trend for a decade or more
and has now reached the million dollar mark.
Such debt is well within the servicing range when viewed in the context of annual turnover. The
principle industries involved are pigs (GVP $240 million), chickens (meat GVP $355 million) and
chickens (eggs GVP $110 million).
Page 63 of 130
- Agricultural Index
% Movement Gross Rural Debt &

Agricultural Index
1994-2009
40.0%
20.0%
0.0%
-20.0%
Debt Index Years
- Commodities
% Movement Gross Rural Debt & Commodities

Index 1994-2009
60.0%
40.0%
20.0%
0.0%
-20.0%
Debt Index Years
Comments
In the period 2005 – 2007, there was a major downward movement in the Agricultural index, whilst
there appeared to be a corresponding gain in the percentage movement of debt. In the 2007 – 2009
period the reverse has occurred, with a decline in the movement of debt, whilst the movement in
agricultural index has increased, with a resultant that over the four year period 2005 – 2009, the
movement in debt and agricultural index has been consistent.
This provides optimism for continued growth and development within the rural sector.
Page 64 of 130
OVERVIEW OF MOVEMENT IN DEBT
a) The number of borrowers has increased by 805 from the 2007 survey.
b) Debt has increased by $3,241 million.
c) The increase in debt has been reflected by an overall increase of „A‟ and „B+‟ rated debt of
$2,827m (87% increase), with the vast majority of the remaining increase reflected within „B2‟
rated debt (218% increase). This compares to the shift that occurred in the 2005 – 2007
period which saw a major shift in the „A‟ and „B+‟ rated category of approximately $1,906m.
d) The „B1‟ and „B2‟ borrowers (combined) have increased by approximately $265m compared
to the increase in the 2005 – 2007 period of approximately $690m.
e) There has been an increase in the level of borrowing of the „C‟ rated borrowers, in the period
2007 – 2009 of $149m. which is reflected within the increase in the beef and cotton industry
„C‟ rated debt of $65m and $35m respectively.
f) Gross debt for the period 1994 – 2009 has increased by $10,993m, whilst GVP has only
increased by $3,473m in the same period.
g) In December 1994, $1 of debt equated to $1.34 of GVP. At December 2009, $1 of debt

equates to $0.59 of GVP; at December 2007, $1 of debt equated to $0.74 of GVP.
h) In the period 2007 – 2009, three Regions accounted for 65% of the increase in debt for the
period, being Region 3221 Central $797m, Region 3222 Maranoa/Western Downs $702m
and Region 331 Central Sth Coast $586m.
i) At Dec 2009, 81% of total rural debt was represented by five (5) Regions, being:
 Region 331 Central Sth Coast $3,112m 21%

 Region 3222 Maranoa/Western Downs $3,103m 21%
 Region 3221 Central $2,560m 17%
 Region 332 Tropical North Coast $1,963m 13%
 Region 321 Eastern Downs $1,527m 10%
j) Nine Shires represent approximately 52% of rural indebtedness in Queensland at December

2009; three Shires represented approximately 27% of rural indebtedness at December 2009.
Page 65 of 130
BACKGROUND AND DEFINITION OF RURAL DEBT
BACKGROUND
In December 2009, QRAA commissioned Moore Stephens to conduct a survey of the level of
Rural Debt in Queensland during 2009 (the RDQ 09 Survey).
A survey has been conducted previously in respect of the years 1994, 1995, 1996, 1997, 1998,
1999, 2001, 2003, 2005 and 2007.
In the 2000 year, QRAA took the decision to conduct the survey bi-yearly, due to the efforts
required by the participating financial institutions in providing the base data. As such, the
survey was not conducted in the 2000, 2002 and 2004 years.
The terms of reference are set out in Appendix 1 but can be summarised as follows:
At the State and Regional levels, and by Rural Industry:
 Identify the extent, nature and size of current gross rural indebtedness in Queensland
 Categorise rural loans into five debt rating categories based on debt servicing ability
and
long term profitability and long term viability prospects
 For each debt rating category, establish a profile of debt to equity ratios
 Seek comment from lending institutions as to the number or percentage in imminent

danger of foreclosure
 Update information on the current total farm population in Queensland and the value of
farm operating income used to determine this
 Endeavour to source information on the number of farms in Queensland without debt
 Endeavour to categorise farm debt by
type of loan facility

and
purpose of loan facility.
Page 66 of 130
In the 2003 year, the financial institutions were requested to provide their information, not at a
Regional level, but at a postcode level, which would then allow reporting at a Shire Level.
This process, as from the 2003 year onwards, allows reporting to be provided both at a
Regional level, and within a Region, at a Shire level.
DEFINITION OF RURAL DEBT
Consistent with the prior surveys
 Rural debt is defined as the total indebtedness of all farmers / rural enterprises
throughout Queensland, where the servicing of the rural debt relies primarily on rural
generated income.
 The major source of debt was through commercial credit providers principally by the
major trading banks, their finance company subsidiaries and specialist rural debt
agencies and institutions. With the co-operation of these lending institutions, it was
possible to quantify the major components of rural debt.
 Elements of rural debt which have been specifically excluded include:
Vendor financing of rural property purchases.

Personal and intra-family loans.
Borrowings for farm investment purposes, by persons / business whose principal
occupation is other than primary production, enabling debt servicing from other
income streams.
Page 67 of 130
METHODOLOGY OF STUDY
The methodology outlined and adopted in the previous surveys of 1994 – 2007, have been
preserved and expanded in this survey, to accommodate additional requirements. This permits
comparisons with statistical data from other established sources such as ABARE, ABS
Queensland Statistician Office, Department of Employment, Economic Development and
Innovation, as well as providing a basis of comparison between previous surveys and the RDQ
09 Survey.
Information was obtained by the input by the lending institutions, of data into a
 computerised database; or
 computerised spreadsheet; or
 manual completion of pro-forma input sheets.
Data from each of the above has been input in a database management system, which allows
comparisons to be drawn on the 1994 – 2007 periods, as previously reported.
The information has been recorded in such a way to protect the confidentiality of the data
made available by the financial institutions.
Maps of shires and ABARE regions in Queensland and a list of industries covered are included
as Part III.
As in previous years, many institutions had difficulty in compiling the information so required,
especially in relation to the profiling of the loan, such as:
 type of loan facility

 purpose of loan facility
 interest rate
 average age of borrower
 equity to debt ratio applied to each loan facility.
The lending institutions surveyed, as in previous years, were requested to adapt or interpret
their internal rating system to conform to the rating scale as set out below.
Page 68 of 130
The rating scale used for 2009 outlined below, is comparable to 1994 – 2007 surveys.
A Considered viable under most / all circumstances
B+ Experiencing debt servicing difficulties under present circumstances –

potentially viable long term
B1 Experiencing debt servicing difficulties under present circumstances -debt situation

deteriorating and in danger of becoming non-viable will continue to receive support of
lender (top 50% of category)
B2 Experiencing debt servicing difficulties under present circumstances - debt situation

deteriorating and in danger of becoming non-viable (bottom 50% of category)
C Considered non-viable;
As explained previously, in the conduct of the 2003 Survey, for the first time in the life of the
Survey, the financial institutions data was collected and recorded
 by postcode basis, by rating and industry

which was then
 converted to ABARE statistical regions
The data has been aggregated into regions defined by ABARE, allowing direct comparisons
with ABARE data.
Page 69 of 130
THE EXTENT, NATURE AND SIZE OF RURAL DEBT
QUEENSLAND
In relation to Queensland Gross Rural Debt, ABARE regions demographically locate the debt
as follows:
Source: RDQ 09 Survey
Gross Rural Debt 2009
4,000,000
3,000,000
2,000,000
$'000
1,000,000
Region
311 Cape & Carpentaria 313 Central Nth 314 Central Sth
321 Eastern Dwns 331 Central Sth Coast 332 Tropical Nth Coast
3121 West 3122 Sth West 3221 Central
3222 Maranoa/Wst Dwn
QUEENSLAND BY REGION AND INDUSTRY
Table I illustrates the spread of debt across the state by region. Detailed reports are contained
in Part II, which provide more detailed information by region, rating and industry.
Page 70 of 130
Table I: Total Debt by Region
Region Number % of Amount % of
Borrowers Borrowers $'000 Total
311 Cape & Carpentaria 212 1.3% 255,231 1.7%
313 Central Nth 742 4.5% 1,158,580 7.7%
314 Central Sth 476 2.9% 683,250 4.5%
321 Eastern Downs 2,280 13.9% 1,527,340 10.1%
331 Central Sth Coast 4,181 25.6% 3,111,969 20.7%
332 Tropical Nth Coast 3,473 21.2% 1,963,224 13.0%
3121 West 196 1.2% 419,253 2.8%
3122 Sth West 219 1.3% 280,971 1.9%
3221 Central 1,850 11.3% 2,559,604 17.0%
3222 Maranoa/Wst Dwn 2,729 16.7% 3,102,550 20.6%
Total 16,358 100.0% 15,061,972 100%
An alternate perspective of rural debt is by each industry.
Table II: Total debt by Industry Source: RDQ 09 Survey

Industry Number of % of Amount % of
Borrowers Borrowers $'000 Total
Beef 5,956 36.4% 8,244,881 55%
Cotton 402 2.5% 1,004,246 7%
Dairy 457 2.8% 280,088 2%
Grain 743 4.5% 987,038 7%
Grain/Grazing 1,020 6.2% 911,048 6%
Horticulture - Tree crops 792 4.8% 607,834 4%
Horticulture - Vegetables 802 4.9% 526,950 3%
Intensive Livestock 458 2.8% 459,023 3%
Other 431 2.6% 278,917 2%
Sheep/Wool 111 0.7% 93,545 1%
Sugar 2,145 13.1% 890,369 6%
Tobacco 0 0.0% - 0%
Services To Agriculture 2,457 15.0% 530,052 4%
Marine Fishing 354 2.2% 158,990 1%
Forestry & Logging 163 1.0% 53,362 0%
Aquaculture 44 0.3% 33,369 0%
Hunting & Trapping 22 0.1% 2,259 0%
Grand Total 16,358 100.0% 15,061,972 100.0%
Page 71 of 130
CHANGES IN SOURCES OF RURAL DEBT
There has been no change in the source of rural debt in Queensland over the past ten years
(being 1994 – 1999, 2001, 2003, 2005, 2007 and 2009 years). Approximately 88% (2007:
95%) of the present Queensland rural debt was provided by the banking sector.
Page 72 of 130
CATEGORISATION OF RURAL DEBT
The terms of reference of the RDQ 09 Survey required that debt be categorised based on debt
servicing ability and long term profitability / viability. The categories, as per previous years,
were:
A Considered viable under most / all circumstances
B+ Experiencing debt servicing difficulties under present circumstances - potentially viable

long term
Bl Experiencing debt servicing difficulties under present circumstances - debt situation

deteriorating and in danger of becoming non-viable will continue to receive support of
lender (top 50% of category)
B2 Experiencing debt servicing difficulties under present circumstances - debt situation

deteriorating and in danger of becoming non-viable (bottom 50% of category)
C Considered non-viable
These debt categories are summarised in Table III and also in Part II - Database Reports.
Table III: Total identified rural debt Source: RDQ 09 Survey
Loan Amount
Rating Number % $ '000 %
A 8,093 49.5% 9,086,010 60.3%
B+ 6,394 39.1% 3,429,457 22.8%
B1 1,669 10.2% 1,849,455 12.3%
B2 129 0.8% 428,958 2.8%
C 73 0.4% 268,092 1.8%
Total 16,358 100% 15,061,972 100%
The financial institutions were requested to provide information only on those businesses
where rural debt was serviced primarily from rural production. This is broadly in line with the
ABS definition of a farm business and effectively excludes hobby farms.
Page 73 of 130
As stated in previous RDQ surveys, the number of borrowers is a subjective estimate as some
of the farm businesses obtain finance from more than one source.
Institutions were requested to consolidate all types of borrowing by customers before the
information was forwarded to the authors. Additionally an adjustment factor was arrived at after
consultation with the responding institutions to eliminate farm businesses that borrowed from
multiple finance providers.
One minor finance institution that participated in the 1996 survey was not able to provide
information for the 1997 and subsequent years. Also another institution that has supplied data
for the 1999 and previous survey years was not able to do so for the 2001,2003, 2005 and
2007 year. As such to ensure consistency of data and comparisons, the information supplied
by these institutions in respect of the years nominated, have been included in 2007, 2005,
2003, 2001 and 1999 information. In the 2009 survey, this data has been eliminated as other
institutions have provided data for the first time this year; the elimination and introduction of
new data offset each other to the degree that the variance was not material to the results
disclosed.
In relation to reporting by Shire, this has the impact that „Shire‟ data is not available for this
category of debt that has been included in the RDQ 07, RDQ 05 and RDQ 03 Survey.
The RDQ 09 Survey identifies that of Queensland farm business borrowers:
• Category “A”. - Borrowers who are considered viable under most / all circumstances –
approximately 60% (2007: 50%).
• Category “B+” - Borrowers who are considered potentially viable long term but are
experiencing debt servicing difficulties – approximately 23% (2007: 16%).
• Category “B1” - Borrowers who are experiencing debt servicing difficulties and a
deteriorating debt situation but with continuing support from lenders. – 12% (2007:
32%).
• Category “B2” - Borrowers who are experiencing debt servicing difficulties and a
deteriorating debt situation. – 3% (2007: 2%).
• Category “C - Borrowers who are considered non-viable – 2% (2007: 0.2%).
Page 74 of 130
Figure 1 illustrates the number of Queensland farmers with debt in each of the rating
categories.
o Figure 1 : Numbers of Queensland Farmers with Debt by Rating Category
Source: RDQ 09Survey
2009 - No. Queensland Farmers With Debt by Rating

10,000
Number Farmers
8,000
6,000
4,000
2009
2,000
2007
-
A
B+
B1
B2
C
Rated Debt
o Figure 2 : Value of Rural Debt by Rating Category
2009 - Loan Debt by Rating

10,000,000
8,000,000
6,000,000
4,000,000
$'000
2009
2,000,000 2007
A
B+
B1
B2
C
Rated Debt
Page 75 of 130
LEVELS OF NON-PERFORMING DEBT
Previous surveys identify the non-performing debt as comprising all the "B2” and "C" rated
categories of debt (either potentially, or actually, non-viable).
In the RDQ 09 Survey these debt categories include 202 (2007: 146) borrowers representing
$697 million (2007: $250 million) or 5% (2007: 2%) of the rural debt. The RDQ 09 Survey also
identifies a further 10% of total debt comprising 1,669 borrowers (2007: 4,559) and $1,849
million (2007: $1,844 million) debt at the “B1” rated level and by definition the debt has the
potential to become non-performing.
The definition of "B1" and "B2" categories of debt includes borrowers who are experiencing
deteriorating debt with the danger of becoming non-viable both with and without continuing
support of lender.
Set out below is a breakdown, by industry, of debt in categories “B1”, “B2”and “C”.
Table IV: Category B1, B2 and C Debt by Industry
Industry B1 B2 C Total
($'000) ($'000) ($'000) ($'000)
Beef 940,558 268,082 67,926 1,276,565
Cotton 137,982 55,186 129,205 322,374
Dairy 34,032 15,586 6,833 56,451
Grain 109,411 14,833 2,039 126,282
Grain/Grazing 150,378 17,276 11,625 179,279
Horticulture - Tree crops 82,566 14,121 3,475 100,162
Horticulture - Vegetables 57,224 7,817 17,955 82,997
Intensive Livestock 41,752 18,170 4,460 64,381
Other 16,301 2,076 8,912 27,289
Sheep/Wool 11,348 2,312 3,137 16,796
Sugar 112,755 3,033 1,266 117,054
Tobacco - - - -
Services To Agriculture 110,248 6,157 7,701 124,107
Marine Fishing 38,452 4,125 789 43,367
Forestry & Logging 3,259 144 2,269 5,672
Aquaculture 3,138 40 500 3,678
Hunting & Trapping 51 - - 51
Grand Total 1,849,455 428,958 268,092 2,546,505
Page 76 of 130
This is graphically represented as follows:
Loan Rating B1, B2 C Categories
Hunting & Trapping

Aquaculture
Forestry & Logging
Marine Fishing
Services To Agriculture
Tobacco
Sugar
Sheep/Wool
Other B1
Intensive Livestock
B2
Horticulture - Tree crops C
Grain/Grazing
Grain
Dairy
Cotton
Beef
-
500,000
1,000,000
1,500,000
$'000
Page 77 of 130
GROSS VALUE OF PRODUCTION
Comparison of Debt to Production Volume
As noted previously, detailed statistical information has been obtained from the Australian
Bureau of Statistics (ABS), in relation to the gross value of production of agriculture (GVP) for
the 2001 year and previous.
We have detailed below for comparison purposes, the gross loan indebtedness identified by
the survey over 1994 – 2001 years, together with the GVP as per the ABS.
The Department of Employment, Economic Development and Innovation (“DEEDI”) via their
forecasting, analysis and trends reports titled “Prospects” and “Prospects Update”, provide
forecasts of gross value of production. This information has been utilised within the RDQ 09
survey, in the provision of estimates of GVP for the 2002, 2003, 2004, 2005, 2007 and 2009
years.
Page 78 of 130
Year Total Debt Debt as % GVP Yearly % Yearly %
$'000 of GVP $'000 Increase in Debt Increase in GVP
2009 15,061,972 168.5% 8,939,000 27.42% 7.76%
2007 11,820,465 142.5% 8,295,000 36.30% (2.07)%
2005 8,672,315 102.4% 8,470,000 12.53% 16.94%
2003 7,706,691 106.4% 7,243,000 15.65% (0.04)%
2001 6,663,555 92.0% 7,245,627 6.32% 7.02%
2000 6,267,652 92.6% 6,770,652 6.74% 6.13%
1999 5,871,748 92.0% 6,379,713 11.10% 8.96%
1998 5,285,061 90.3% 5,854,874 9.52% 3.13%
1997 4,825,535 85.0% 5,677,093 2.16% 6.72%
1996 4,723,330 88.8% 5,319,670 16.09% (2.68)%
1995 4,068,668 74.4% 5,466,416 5.01% 4.98%
1994 3,874,471 74.4% 5,206,927
Comparison of Total Debt v GVP

16,000
14,000
12,000
$'000
10,000
8,000
6,000
4,000
2,000
-
Total Debt GVP
2009 2007 2005 2003 2001 2000
The GVP for the 1994 – 2009 years is broken down as follows:
Details 2009 2007 2005 2003 2001
Crops 4,281 3,755 3,800 3,375 3,391
Livestock Slaughtered 4,153 4,130 4,230 3,357 3,368
Livestock Products 505 410 440 511 486
Total 8,939 8,295 8,470 7,243 7,246
Details 2000** 1999 1998 1997 1996 1995 1994

Crops 3,557 3,542 3,349 3,509 3,110 2,970 2,542
Livestock Slaughtered 2,668 2,270 1,881 1,614 1,643 1,916 2,152
Livestock Products 546 567 625 554 567 580 513
Total 6,771 6,380 5,855 5,677 5,320 5,466 5,207
Page 79 of 130
The overall increase in GVP from 1994 to 2009 of $3,732 million (1994 – 2007: $3,088m),
consists of two major areas, being:
Crops – Increased by $1,739m (1994-2007: $1,213m)

Livestock slaughtered – Increased by $2,001m (1994-2007: $1,978m)
Movement in GVP 1994-2009

4,000,000
3,500,000
3,000,000
2,500,000
$'000
2,000,000
1,500,000
1,000,000
500,000
0
(500,000)
Gross Value Production

Crops Livestock Slaughtered Livestock Products Total Movement
TYPE OF LOAN FACILITIES AND PURPOSE OF LOAN
Financiers were requested to provide if possible, details of:
 the form of the loan facility provided

 the original purpose of the loan
and
 the interest rate applied.
As in the 2007, 2005, 2003, 2001 and 1999 survey, not all financial institutions were able to
provide details as requested, due mainly to the differing management information systems of
their own structures. The level of information varied from each institution, as to the details that
could be provided about the type of loan facility and the purpose of the loan.
Page 80 of 130
- Loan Facility Type –
Loan type Total ($’000)

Asset Finance 184,496
Bill Facility 2,927,443
Bill<1yr 7,466
Bill>1<5 yrs 231,564
Equipment Finance 173,911
Bill >5yrs 154,786
overdraft 747,098
Term Loan 2,225,737
Term Loan < 5 Years 867,305
Term Loan > 5 years 5,202,973
Grand Total 12,722,779
AGE OF BORROWER
As in 2005, 2003, 2001 and 1999, the financial institutions were also requested to provide
information in relation to the average age of the borrower. As explained previously, the degree
of data able to be provided by each institution varied, in relation to the age of borrower.
In the conduct of RDQ 09, the financial institutions were not able to provide this information.
Page 81 of 130
COMPARISON OF PREVIOUS SURVEYS AND RDQ 07 SURVEY
A summary of information obtained via the nine surveys, being 1994 – 1999, 2001, 2003,
2005, 2007 and 2009 is provided in the following tables.
The movement of borrowers and debt levels between the most recent two surveys is included
and expressed in absolute and in percentage terms in the tables.
COMPARISON OF DEBT BY INDUSTRY
As stated in previous surveys, when comparing the borrowers and debt levels by industry
between surveys, allowance needs to be made for inadvertent changes which may have been
made by lending institutions when categorising borrowers into industry types.
Page 82 of 130
DEBT BY INDUSTRY
- Number of Borrowers
Number 2009 2007 2005 2003 2001

Beef 5,956 5,016 5,393 5,606 4,849
Cotton 402 573 673 655 676
Dairy 457 1,670 1,761 2,206 954
Grain 743 638 643 1,129 1,865
Grain/Grazing 1,020 1,423 1,989 1,375 956
Horticulture - Tree Crops 792 512 903 980 1,164
Horticulture - Vegetables 802 986 934 633 465
Intensive Livestock 458 473 613 658 486
Other 431 718 537 1,705 3,210
Sheep/Wool 111 114 274 409 486
Sugar 2,145 1,764 2,209 2,760 2,751
Tobacco 0 295 376 485 212
Services To Agriculture 2,457 1,371 - - -
Aquaculture 44 - - - -
Forestry & Logging 163 - - - -
Hunting & Trapping 22 - - - -
Marine Fishing 354 - - - -
Grand Total 16,358 15,553 16,305 18,601 18,074
Number 1999 1998 1997 1996 1995 1994

Industry Total Total Total Total Total Total
Beef 5,143 5,157 5,270 4,852 4,981 5,311
Cotton 722 589 418 311 263 222
Dairy 997 1,233 1,173 956 970 912
Grain 1,712 1,653 1,382 1,502 1,129 1,344
Grain/Grazing 1,344 1,778 1,390 3,022 2,629 2,174
Horticulture - Tree Crops 1,270 648 976 811 713 759
Horticulture - Vegetables 584 868 555 351 325 414
Intensive Livestock 624 656 449 410 457 495
Other 3,091 3,655 1,698 1,395 1,357 1,055
Sheep/Wool 563 651 700 810 1,233 1,224
Sugar 2,784 2,844 3,127 2,379 2,236 2,365
Tobacco 290 32 37 31 27 257
Grand Total 19,124 19,764 17,175 16,830 16,320 16,532
Page 83 of 130
- Dollar Value of Borrowings
Value ($'000) 2009 2007 2005 2003 2001 1999
Beef 8,244,881 6,057,805 4,311,527 3,149,911 2,282,014 1,860,922
Cotton 1,004,246 1,148,528 870,725 830,655 694,353 611,821
Dairy 280,088 206,877 223,919 305,799 258,349 279,623
Grain 987,038 598,865 559,471 452,723 479,808 351,215
Grain/Grazing 911,048 1,035,128 779,231 509,959 486,307 513,685
Horticulture - Tree Crops 607,834 306,871 272,092 336,509 373,744 330,308
Other 278,917 114,262 80,069 479,211 401,740 358,066
Sheep/Wool 93,545 112,543 129,664 122,342 112,715 162,844
Sugar 890,369 776,266 796,783 1,026,865 1,179,928 1,028,407
Tobacco - 87,221 63,292 64,662 41,330 40,642
Services To Agriculture 530,052 537,164 - - - -
Aquaculture 33,369 - - - - -
Forestry & Logging 53,362 - - - -
Hunting & Trapping 2,259 - - - - -
Marine Fishing 158,990 - - - - -
Grand Total 15,061,972 11,820,465 8,672,315 7,706,691 6,663,556 5,871,749
Value ($'000) 1998 1997 1996 1995 1994

Beef 1,496,115 1,672,247 1,735,456 1,421,908 1,428,433
Cotton 416,195 233,655 185,738 153,170 131,069
Dairy 263,385 255,941 212,433 213,691 192,445
Grain 376,959 364,211 350,835 212,569 286,190
Grain/Grazing 504,772 396,849 598,633 552,874 466,241
Horticulture - Tree Crops 226,235 255,657 219,004 194,205 162,427
Horticulture - Vegetables 199,909 122,725 107,599 86,935 82,572
Intensive Livestock 252,206 119,107 111,357 116,084 129,620
Other 526,862 360,976 282,920 206,560 138,914
Sheep/Wool 187,316 212,498 250,742 350,687 321,098
Sugar 831,181 824,612 663,444 555,404 512,222
Tobacco 3,928 7,057 5,169 4,581 23,240
Grand Total 5,285,062 4,825,535 4,723,330 4,068,668 3,874,471
Page 84 of 130
COMPARISON OF DEBT TO GROSS VALUE OF PRODUCTION (GVP)
Table V: Comparison of Rural Debt to GVP

Source: RDQ 94, 95, 96, 97, 98, 99, 01, 03, 05, 07,09 Surveys
Year Loan Debt Gross Value of Production

$'000 Crops Lvstk Slght Lvstk Prdct Total
2009 15,061,972 4,281,000 4,153,000 505,000 8,939,000
2007 11,820,465 3,755,000 4,130,000 410,000 8,295,000
2005 8,672,315 3,800,000 4,230,000 440,000 8,470,000
2003 22,057,388 3,375,000 3,357,000 511,000 7,243,000
2001 14,350,697 3,391,263 3,368,422 485,942 7,245,627
2000 6,267,652 3,557,068 2,667,858 545,725 6,770,652
1999 5,871,748 3,542,496 2,269,934 567,283 6,379,713
1998 5,285,061 3,349,106 1,881,034 624,734 5,854,874
1997 4,825,535 3,508,770 1,613,881 554,442 5,677,093
1996 4,723,330 3,110,336 1,642,764 566,569 5,319,670
1995 4,068,668 2,970,394 1,915,639 580,384 5,466,416
1994 3,874,471 2,541,911 2,151,559 513,458 5,206,927
Comparison of Total Debt v GVP

16,000
14,000
12,000
10,000
$'000
8,000
6,000
4,000
2,000
-
Total Debt
GVP
2009 2007 2005 2003 2001 2000
1999 1998 1997 1996 1995 1994
Page 85 of 130
COMPARISON OF RURAL DEBT BY REGION 1994 – 2009
2009 2007 2005 2003
Region Number $'000 Number $'000 Number $'000 Number $'000
311 212 255,231 160 165,344 205 116,001 223 125,533
313 742 1,158,580 660 879,492 680 618,229 862 578,645
314 476 683,250 430 593,755 439 307,181 517 256,304
321 2,280 1,527,340 2,284 1,236,752 2,451 753,683 2,727 798,918
331 4,181 3,111,969 4,528 2,526,129 4,668 1,946,787 5,347 1,547,492
332 3,473 1,963,224 2,985 1,798,284 3,057 1,312,304 3,649 1,426,125
3121 196 419,253 227 307,000 200 195,977 189 149,449
3122 219 280,971 182 150,966 229 107,435 311 116,388
3221 1,850 2,559,604 1,826 1,762,523 1,915 1,437,677 1,985 1,054,282
3222 2,729 3,102,550 2,271 2,400,220 2,461 1,877,039 2,791 1,653,555
Totals 16,358 15,061,972 15,553 11,820,465 16,304.52 8,672,315 18,601 7,706,691
2002 2001 2000 1999

311 278 94,347 334 63,160 334 46,024 160 28,887
313 686 433,931 509 289,218 509 282,815 718 276,412
314 544 231,974 570 207,644 570 205,186 648 202,728
321 2,585 824,776 2,441 850,633 2,441 795,232 2,590 739,831
331 5,609 1,598,380 5,869 1,649,269 5,869 1,601,523 6,383 1,553,777
332 3,966 1,517,960 4,282 1,609,795 4,282 1,473,710 4,085 1,337,625
3121 189 130,790 190 112,131 190 114,968 271 117,806
3122 249 94,160 187 71,933 187 77,821 243 83,709
3221 1,774 884,639 1,562 714,996 1,562 654,182 1,603 593,369
3222 2,461 1,374,166 2,130 1,094,777 2,130 1,016,191 2,423 937,605
Totals 18,341 7,185,123 18,074 6,663,556 18,074 6,267,652 19,124 5,871,749
1998 1997 1996 1995

311 81 31,222 182 61,445 153 58,535 142 57,223
313 841 265,125 950 366,365 816 298,934 734 239,609
314 679 189,051 622 240,340 549 233,507 574 203,061
321 2,845 629,475 2,532 600,989 2,667 577,166 2,656 532,410
331 5,976 1,276,704 5,270 1,197,733 5,154 1,148,707 5,271 1,053,662
332 4,309 1,242,480 3,573 1,086,896 3,444 997,505 3,268 841,726
3121 235 107,467 196 73,715 215 100,546 232 101,618
3122 317 83,894 313 129,173 323 151,394 266 100,665
3221 1,696 546,376 1,569 536,911 1,451 552,639 1,223 426,482
3222 2,785 913,268 1,968 531,961 2,051 604,397 1,954 512,212
Totals 19,764 5,285,062 17,175 4,825,527 16,823 4,723,330 16,320 4,068,668
Page 86 of 130
1994 Movement 94-09 % Movement 94-09
Region Number $'000 Region Number $'000 Number $'000
311 154 42,533 311 58 122,811 37.3% 288.7%
313 852 262,375 313 (110) 617,117 (13)% 235.2%
314 554 205,696 314 (78) 388,059 (14)% 188.7%
321 2,887 548,972 321 (607) 687,780 (21)% 125.3%
331 4,852 886,302 331 (671) 1,639,827 (14)% 185.0%
332 3,223 778,557 332 250 1,019,727 8% 131.0%
3121 142 77,156 3121 54 229,844 38% 297.9%
3122 360 126,249 3122 (141) 24,717 (39)% 19.6%
3221 1,195 386,778 3221 655 1,375,745 55% 355.7%
3222 2,312 559,853 3222 417 1,840,367 18% 328.7%
Totals 16,531 3,874,471 Totals (173) 7,945,994 (1)% 205.1%
Page 87 of 130
PART II – APPENDIX
APPENDIX 1 – SHIRES AND EQUIVALENT ABARE REGIONS AND INDUSTRIES
COVERED
LISTING OF SHIRES AND EQUIVALENT ABARE REGIONS
Aurukun Shire Council 311 Ipswich City Council 331
Balonne Shire Council 3222 Issac Regional Council 3221
Banana Shire Council 3222 Kowanyama Aboriginal Shire Council 311
Barcaldine Regional Council 3122 Lockhart River Aboriginal Shire Council 311
Barcoo Shire Council 3122 Lockyer Valley Regional Council 331
Blackall-Tambo Regional Council 314 Logan City Council 332
Boulia Shire Council 3121 Longreach Regional Council 3122
Brisbane City Council 331 Mackay Regional Council 332
Bulloo Shire Council 3122 Mapoon Aboriginal Shire Council 311
Bundaberg Regional Council 3221 McKinlay Shire Council 323
Burdekin Shire Council 332 Moreton Bay Regional Council 332
Burke Shire Council 3121 Mornington Shire Council 311
Cairns Regional Council 332 Mount Isa City Council 3121
Carpentaria Shire Council 332 Murweh Shire Council 3222
Cassowary Coast Regional Council 332 Napranum Aboriginal Shire Council 311
Central Highlands Regional Council 3221 North Burnett Regional Council 332
Charters Towers Regional Council 332 Northern Penisular Area Regional Council 311
Cherbourg Aboriginal Shire Council 331 Palm Island Aboriginal Shire Council 332
Cloncurry Shire Council 3121 Paroo Shire Council 3122
Cook Shire Council 311 Pormpuraaw Aboriginal Shire Council 311
Croyden Shire Council 313 Quilpie Shire Council 3122
Dalby Regional Centre 3222 Redland City Council 331
Diamantina Shire Council 3121 Richmond Shire Council 313
Doomadgee Aboriginal Shire Council 311 Rockhampton Regional Council 3221
Etheridge Shire Council 13 Roma Regional Council 3222
Flinders Shire Council 313 Scenic Rim Regional Council 331
Fraser Coast Regional Council 332 Somerset Regional Council 331
Gladstone Regional Council 331 South Burnett Regional Council 331
Gold Coast City Council 331 Southern Downs Regional Council 321
Goondiwindi Regional Council 3222 Sunshine Coast Regional Council 331
Gympie Regional Council 331 Tablelands Regional Council 332
Hinchinbrook Shire Council 332 Toowoomba Regional Council 321
Hope Vale Aboriginal Shire Council 311 Torres Shire Council 311
Torres Strait Island Regional Council 311 Woorabinda Aboriginal Shire Council 3221
Townsville City Council 332 Wujal Wujal Aboriginal Shire Council 311
Page 88 of 130
Whitsunday Regional Council 332 Yarrabah Aboriginal Shire Council 332
Winton Shire Council 3121 Woorabinda Aboriginal Shire Council 3221
Torres Strait Island Regional Council 311
Page 89 of 130
APPENDIX 2 - INDUSTRIES
The rural industries in Queensland were segregated using the following classifications:
 Beef
 Cotton
 Dairy
 Grain (summer and winter)
 Grain/Grazing (sheep and/or cattle)
 Horticulture – Vegetables
 Horticulture – Tree crops (mangoes, pawpaws, bananas, citrus etc)
 Intensive Livestock (Pigs, Poultry etc)
 Other (not elsewhere covered)
 Sheep/Wool
 Sugar
 Services to Agriculture
 Marine Fishing
 Forestry & Logging
 Aquaculture
 Hunting & Trapping
Page 90 of 130
APPENDIX 3 – DEFINITIONS
Farm business - farm Lending institutions were requested to provide information by industry type
establishments vs and borrower without reference to individual properties. Consequently
management units there may be more than one rural property or location per business
borrower. This treatment is consistent with ABS, ABARE and DEEDI
treatments.
Indicative equity This term is used to emphasise that values of rural properties and/or plant
are volatile and consequently debt to equity ratios relying on valuations of
equity are also subject to a degree of subjectivity.
Industry Lending institutions were supplied with a listing of rural industries

classifications for the purposes of the RDQ 09 Survey. The RDQ 09 Survey
has relied on the classifications submitted by the lending institutions. In
cases where businesses engaged in more than one type of rural industry
the institutions were requested to classify the business by the predominant
activity.
Intensive livestock Generally rural businesses involved with raising of pigs and poultry (see
definitions of industries in Appendix 2), and specifically excludes beef
feedlots.
Long term viability Whether a rural business is self sustaining on a long term basis. Measures
include ability to maintain farm capital stock and provide funds for both
growth and personal cashflow needs of principals.
Non performing debt Describes debts where there is no principal reduction and inadequate or nil
interest repayments. For the RDQ 09 Survey this comprised the entire "C"
rated category of debt (non-viable) as confirmed by the responding
institutions.
Page 91 of 130
APPENDIX 4 – INSTITUTIONS CONTACTED DURING THE RDQ 09 SURVEY
Major Contributors
Australia and New Zealand Banking Group

Bank of Queensland
Bank West
Commonwealth Bank
National Australia Bank
Rabobank
Rural Bank
Westpac Banking Corporation
Suncorp
Other Major Industry Lenders
QRAA
Page 92 of 130
PART III - DATABASE REPORTS
The following reports have been produced from the database:
DEBT BY RATING AND I NDUSTRY REPORT NO.
 Number of Farm Business Borrowers .............................................................. DB 1

 Amount of Farm Business Borrowings ............................................................. DB 2
 Proportion of Borrowers by Industry ................................................................. DB 3
 Proportion of Borrowings by Industry ............................................................... DB 4
 Proportion of Borrowers by Rating ................................................................... DB 5
 Proportion of Borrowings by Rating.................................................................. DB 6
DEBT BY RATING AND REGION

 Proportion of Borrowers by Region .................................................................. DB 9
 Proportion of Borrowings by Region................................................................. DB 10
 Proportion of Borrowers by Rating ................................................................... DB 11
 Proportion of Borrowings by Rating.................................................................. DB 12
DEBT BY REGION AND INDUSTRY

 Proportion of Borrowers by Industry ................................................................. DB 15
 Proportion of Borrowings by Industry ............................................................... DB 16
 Proportion of Borrowers by Region .................................................................. DB 17
 Proportion of Borrowings by Region................................................................. DB 18
DEBT BY INDUSTRY , RATING AND REGION
 Number of Beef Business Borrowers ............................................................... DB 19

 Amount of Beef Business Borrowings .............................................................. DB 20
 Number of Cotton Business Borrowers ............................................................ DB 21
 Amount of Cotton Business Borrowings ........................................................... DB 22
 Number of Dairy Business Borrowers .............................................................. DB 23
 Amount of Dairy Business Borrowings ............................................................. DB 24
 Number of Grain Business Borrowers .............................................................. DB 25
 Amount of Grain Business Borrowings ............................................................. DB 26
 Number of Grain/Grazing Business Borrowers ................................................. DB 27
 Amount of Grain/Grazing Business Borrowings ................................................ DB 28
 Number of Horticulture – Tree Crops Business Borrowers ............................... DB 29
 Amount of Horticulture – Tree Crops Business Borrowings .............................. DB 30
Page 93 of 130
 Number of Horticulture – Vegetables Business Borrowers ............................... DB 31
 Amount of Horticulture – Vegetables Business Borrowings .............................. DB 32
 Number of Intensive Livestock Business Borrowers ......................................... DB 33
 Amount of Intensive Livestock Business Borrowings ........................................ DB 34
 Number of Other Business Borrowers .............................................................. DB 35
 Amount of Other Business Borrowings ............................................................. DB 36
 Number of Sheep/Wool Business Borrowers.................................................... DB 37
 Amount of Sheep/Wool Business Borrowings .................................................. DB 38
 Number of Sugar Business Borrowers ............................................................. DB 39
 Amount of Sugar Business Borrowings ............................................................ DB 40
 Number of Service to Agriculture Business Borrowers ..................................... DB41
 Amount of Service to Agriculture Borrowings ................................................... DB42
DEBT BY REGION, RATING AND I NDUSTRY
 Number of Borrowers in Region 311 ................................................................ DB 43

 Amount of Borrowings in Region 311 ............................................................... DB 44
 Number of Borrowers in Region 3121 .............................................................. DB 55
 Amount of Borrowings in Region 3121 ............................................................. DB 56
Page 94 of 130
DEBT BY RATING AND INDUSTRY
Number of Farm Business Borrowers (DB1)
[Total rural borrowers (numerical) rated by debt categories for each industry]
Grand
Industry A B+ B1 B2 C Total
Beef 3,126 2,049 708 58 15 5,956
Cotton 203 127 62 4 7 402
Dairy 280 134 37 4 2 457
Grain 444 192 100 6 2 743
Grain/Grazing 467 390 141 17 5 1,020
Horticulture - Tree
Crops 449 267 68 5 3 792
Horticulture -
Vegetables 470 283 37 8 5 802
Other 261 125 34 4 6 431
Sheep/Wool 62 37 12 - - 111
Sugar 1,236 773 132 3 1 2,145
Tobacco - - - - - -
Services To Agriculture 612 1,596 225 7 17 2,457
Marine Fishing 188 116 45 4 2 354
Forestry & Logging 52 89 16 1 6 163
Aquaculture 19 18 7 1 - 44
Hunting & Trapping 9 13 1 - - 22
Grand Total 8,093 6,394 1,669 129 73 16,358
Number of Borrowings - Industry

Hunting & Trapping
Aquaculture
Forestry & Logging
Marine Fishing
Tobacco
Sugar
Sheep/Wool
Other
Intensive Livestock
Grain/Grazing
Grain
Dairy
Cotton
Beef
-
1,000
2,000
3,000
4,000
5,000
6,000
Number of Borrowers
Page 95 of 130
Amount of Farm Business Borrowings (DB2)
[Total rural borrowers (value) rated by debt categories for each industry]
Grand
Industry A B+ B1 B2 C
Total
Beef 5,150,364 1,817,952 940,558 268,082 67,926 8,244,881
Cotton 486,418 195,453 137,982 55,186 129,205 1,004,246
Dairy 170,032 53,606 34,032 15,586 6,833 280,088
Grain 698,268 162,488 109,411 14,833 2,039 987,038
Grain/Grazing 459,344 272,425 150,378 17,276 11,625 911,048
Horticulture - Tree 397,965 109,708 82,566 14,121 3,475 607,834
Crops
Horticulture - 284,951 159,002 57,224 7,817 17,955 526,950
Vegetables
Other 201,188 50,440 16,301 2,076 8,912 278,917
Sheep/Wool 56,916 19,833 11,348 2,312 3,137 93,545
Sugar 576,448 196,866 112,755 3,033 1,266 890,369
Tobacco - - - - - -
Services To Agriculture 219,544 186,401 110,248 6,157 7,701 530,052
Marine Fishing 88,379 27,245 38,452 4,125 789 158,990
Forestry & Logging 26,476 21,213 3,259 144 2,269 53,362
Aquaculture 18,879 10,812 3,138 40 500 33,369
Hunting & Trapping 1,317 891 51 - - 2,259
Grand Total 9,086,009 3,429,457 1,849,455 428,958 268,092 15,061,972
Value of Borrowings - Industry

Hunting & Trapping
Aquaculture
Forestry & Logging
Marine Fishing
Tobacco
Sugar
Sheep/Wool
Other
Intensive Livestock
Grain/Grazing
Grain
Dairy
Cotton
Beef
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Amount ($'000) of Borrowings
Page 96 of 130
Proportion of Borrowers by Industry (DB3)
[Total borrowers (numerical) for each industry proportioned by debt rating categories]
Industry A B+ B1 B2 C Grand Total

Beef 3,126 2,049 708 58 15 5,956
Cotton 203 127 62 4 7 402
Dairy 280 134 37 4 2 457
Grain 444 192 100 6 2 743
Grain/Grazing 467 390 141 17 5 1,020
Horticulture - Tree Crops 449 267 68 5 3 792
Other 261 125 34 4 6 431
Sheep/Wool 62 37 12 0 0 111
Sugar 1,236 773 132 3 1 2,145
Tobacco 0 - - - - 0
Services To Agriculture 612 1,596 225 7 17 2,457
Marine Fishing 188 116 45 4 2 354
Aquaculture 19 18 7 1 0 44
Hunting & Trapping 9 13 1 - - 22
Grand Total 8,093 6,394 1,669 129 73 16,358
Industry Borrowers by B1, B2 & C Categories
Hunting & Trapping

Aquaculture
Forestry & Logging
Marine Fishing
Tobacco
Sugar
Sheep/Wool
Other B1
Intensive Livestock
B2
Horticulture - Tree Crops C
Grain/Grazing
Grain
Dairy
Cotton
Beef
0%
20%
40%
60%
80%
100%
Percentage
Page 97 of 130
Proportion of Borrowings by Industry (DB4)
[Total borrowings (value) for each industry proportioned by debt rating categories]

Beef 62% 22% 11% 3% 1% 100%
Cotton 48% 19% 14% 5% 13% 100%
Dairy 61% 19% 12% 6% 2% 100%
Grain 71% 16% 11% 2% 0% 100%

Grain/Grazing 50% 30% 17% 2% 1% 100%
Horticulture - Tree Crops 65% 18% 14% 2% 1% 100%
Horticulture - Vegetables 54% 30% 11% 1% 3% 100%
Intensive Livestock 54% 32% 9% 4% 1% 100%
Other 72% 18% 6% 1% 3% 100%
Sheep/Wool 61% 21% 12% 2% 3% 100%
Sugar 65% 22% 13% 0% 0% 100%
Tobacco 0% 0% 0% 0% 0% 0%
Services To Agriculture 41% 35% 21% 1% 1% 100%
Marine Fishing 56% 17% 24% 3% 0% 100%
Forestry & Logging 50% 40% 6% 0% 4% 100%
Aquaculture 57% 32% 9% 0% 1% 100%
Hunting & Trapping 58% 39% 2% 0% 0% 100%
Grand Total 60% 23% 12% 3% 2% 100%
Industry Borrowers by B1, B2 & C Categories
Hunting & Trapping

Aquaculture
Forestry & Logging
Marine Fishing
Tobacco
Sugar
Sheep/Wool
Other B1
Intensive Livestock B2
Horticulture - Tree Crops C
Grain/Grazing
Grain
Dairy
Cotton
Beef
0%
20%
40%
60%
80%
100%
Page 98 of 130
Proportion of Borrowers by Rating (DB5)
[Debt rating category proportioned by industry borrowers (numerical)]

Beef 39% 32% 42% 45% 21% 36%
Cotton 3% 2% 4% 3% 9% 2%
Dairy 3% 2% 2% 3% 2% 3%
Grain 5% 3% 6% 5% 2% 5%
Grain/Grazing 6% 6% 8% 13% 6% 6%
Other 3% 2% 2% 3% 8% 3%
Sheep/Wool 1% 1% 1% 0% 0% 1%
Sugar 15% 12% 8% 2% 2% 13%
Tobacco 0% 0% 0% 0% 0% 0%
Marine Fishing 2% 2% 3% 3% 3% 2%
Aquaculture 0% 0% 0% 0% 0% 0%
Grand Total 100% 100% 100% 100% 100% 100%

Proportion of Borrowings by Rating (DB6)
[Debt rating category proportioned by industry borrowings (value)]

Beef 57% 53% 51% 62% 25% 55%
Cotton 5% 6% 7% 13% 48% 7%
Dairy 2% 2% 2% 4% 3% 2%
Grain 8% 5% 6% 3% 1% 7%
Grain/Grazing 5% 8% 8% 4% 4% 6%
Other 2% 1% 1% 0% 3% 2%
Sheep/Wool 1% 1% 1% 1% 1% 1%
Sugar 6% 6% 6% 1% 0% 6%
Tobacco 0% 0% 0% 0% 0% 0%
Marine Fishing 1% 1% 2% 1% 0% 1%
Aquaculture 0% 0% 0% 0% 0% 0%
Grand Total 100% 100% 100% 100% 100% 100%
Page 99 of 130
Debt By Rating And Region
[Total rural borrowers (numerical) rated by debt categories for ABARE region]
Number Loan Rating

Region A B+ B1 B2 C Grand Total
311 Cape & Carpentaria 99 87 24 1 0 212
313 Central North 358 282 91 5 6 742
314 Central South 257 167 50 1 1 476
321 Eastern Downs 948 1,032 269 23 9 2,280
331 Central South Coast 2,098 1,614 410 34 25 4,181
332 Tropical North Coast 1,873 1,354 231 10 6 3,473
3121 West 117 68 10 0 1 196
3122 South West 118 77 21 1 1 219
3221 Central 1,149 504 169 22 7 1,850
3222 Maranoa / Western Downs 1,075 1,209 395 32 18 2,729
Grand Total 8,093 6,394 1,669 129 73 16,358

[Total rural borrowings (value) rated by debt categories for each ABARE region]
Amount ($'000) Loan Rating

311 Cape & Carpentaria 160,238 61,120 15,145 18,706 22 255,231
313 Central North 586,225 362,214 148,644 55,002 6,494 1,158,580
314 Central South 459,698 130,617 91,528 1,407 - 683,250
321 Eastern Downs 779,567 401,320 284,426 38,913 23,114 1,527,340
331 Central South Coast 1,814,847 688,509 476,378 83,462 48,774 3,111,969
332 Tropical North Coast 1,351,570 422,439 134,769 27,942 26,504 1,963,224
3121 West 273,592 79,581 20,399 41,131 4,550 419,253
3122 South West 176,388 71,191 26,092 4,177 3,122 280,971
3221 Central 1,865,784 463,663 162,472 60,218 7,468 2,559,604
3222 Maranoa / Western Downs 1,618,101 748,803 489,601 98,001 148,045 3,102,550
Grand Total 9,086,010 3,429,457 1,849,455 428,958 268,092 15,061,972
Page 100 of 130

Proportion of Borrowers by Region (DB9)
[Total borrowers (numerical) for each ABARE region proportioned by debt rating categories]
Region Loan Rating

Number % A B+ B1 B2 C Grand Total
311 Cape & Carpentaria 47% 41% 11% 0% 0% 100%
313 Central North 48% 38% 12% 1% 1% 100%
314 Central South 54% 35% 11% 0% 0% 100%
321 Eastern Downs 42% 45% 12% 1% 0% 100%
331 Central South Coast 50% 39% 10% 1% 1% 100%
332 Tropical North Coast 54% 39% 7% 0% 0% 100%
3121 West 60% 35% 5% 0% 0% 100%
3122 South West 54% 35% 10% 0% 1% 100%
3221 Central 62% 27% 9% 1% 0% 100%
3222 Maranoa / Western Downs 39% 44% 14% 1% 1% 100%
Grand Total 49% 39% 10% 1% 0% 100%

Proportion of Borrowings by Region (DB10)
[Total borrowings (value) for each ABARE region proportioned by debt rating categories]
Amount % Loan Rating

Region A B+ B1 B2 C Grand
Total
313 Central North 51% 31% 13% 5% 1% 100%
314 Central South 67% 19% 13% 0% 0% 100%
321 Eastern Downs 51% 26% 19% 3% 2% 100%
3121 West 65% 19% 5% 10% 1% 100%
3122 South West 63% 25% 9% 1% 1% 100%
3221 Central 73% 18% 6% 2% 0% 100%
Grand Total 60% 23% 12% 3% 2% 100%
Page 101 of 130

Proportion of Borrowers by Rating (DB11)
[Debt rating category proportioned by ABARE region (numerical)]
Loan
Number %
Rating
313 Central North 5% 3% 4% 5% 4% 4%
314 Central South 3% 6% 2% 2% 2% 3%
321 Eastern Downs 17% 5% 12% 15% 21% 15%
3121 West 1% 5% 2% 1% 1% 1%
3122 South West 1% 1% 1% 1% 1% 1%
3221 Central 11% 25% 11% 6% 6% 11%
Grand Total 100% 100% 100% 100% 100% 100%

Proportion of Borrowings by Rating (DB12)
[Debt rating category proportioned by ABARE region (value)]
Amount % Loan Rating

313 Central North 6% 11% 8% 13% 2% 8%
314 Central South 5% 4% 5% 0% 0% 5%
321 Eastern Downs 9% 12% 15% 9% 9% 10%
3121 West 3% 2% 1% 10% 2% 3%
3122 South West 2% 2% 1% 1% 1% 2%
3221 Central 21% 14% 9% 14% 3% 17%
Grand Total 100% 100% 100% 100% 100% 100%
Page 102 of 130

Debt By Region And Industry
[Total rural borrowers (numerical) for each industry by ABARE regions]
Number Region
Industry 311 313 314 321 331 332 3121 3122 3221 3222 Total Borrowers
Beef 107 417 392 509 1,374 404 165 155 1,181 1,253 5,956
Cotton - - - 141 14 1 - - 68 179 402
Dairy 2 9 - 151 218 48 - 1 20 7 457
Grain 1 6 1 254 102 18 - 1 134 227 743
Grain/Grazing 1 11 10 238 123 20 3 4 134 476 1,020
Horticulture - Tree Crops 23 121 - 61 308 248 - 2 15 14 792
Horticulture - Vegetables 3 36 - 133 471 145 1 - 6 7 802
Intensive Livestock 1 19 6 114 215 21 1 2 31 48 458
Other 5 28 1 50 202 80 2 2 44 18 431
Sheep/Wool - 2 21 26 7 - 3 27 - 24 111
Sugar 37 19 - 1 214 1,867 - - 2 5 2,145
Tobacco - - - - 0 - - - - - 0
Services To Agriculture 18 58 42 566 617 476 19 22 202 439 2,457
Marine Fishing 12 7 - 12 177 118 1 1 8 17 354
Forestry & Logging - 6 1 24 112 7 1 - 2 10 163
Aquaculture 2 4 - - 20 16 - - 2 - 44
Hunting & Trapping - 1 3 1 6 4 1 2 - 5 22
Total Borrowers 212 742 476 2,280 4,182 3,473 196 218 1,850 2,729 16,358
Page 103 of 130

[Total rural borrowings (value) for each industry by ABARE regions]
Amount ($'000) Region

Industry 311 313 314 321 331 332 3121 3122 3221 3222 Grand Total
Beef 217,464 971,901 644,062 386,358 1,382,259 750,507 410,433 249,506 1,889,046 1,343,346 8,244,881
Cotton - - - 222,433 26,562 1,037 - - 162,858 591,356 1,004,246
Dairy 337 9,741 - 74,081 146,247 36,392 49 156 10,845 2,241 280,088
Grain 434 8,235 5 249,346 117,916 21,485 - 34 177,629 411,954 987,038
Grain/Grazing 301 10,118 5,013 106,515 81,792 9,296 1,120 2,504 172,875 521,514 911,048
Horticulture - Tree Crops 11,093 63,328 - 76,067 284,820 140,752 - 227 22,311 9,236 607,834
Horticulture - Vegetables 102 19,067 - 99,980 303,975 92,012 - - 6,796 5,019 526,950
Intensive Livestock 27 12,184 323 123,778 238,016 22,656 33 709 14,977 46,320 459,023
Other 1,844 19,765 300 38,445 129,228 48,613 3,492 862 24,173 12,195 278,917
Sheep/Wool - 3,244 24,023 12,007 5,726 - 1,071 24,366 - 23,108 93,545
Sugar 14,848 19,205 - 694 86,178 702,159 - - 3,602 63,681 890,369
Tobacco - - - - - - - - - - -
Services To Agriculture 4,390 14,900 9,158 129,736 155,378 80,485 2,785 2,171 67,188 63,861 530,052
Marine Fishing 1,274 3,677 - 4,452 91,547 44,389 226 40 6,211 7,175 158,990
Forestry & Logging - 563 244 3,410 46,495 566 45 - 1,007 1,032 53,362
Aquaculture 3,116 2,650 - - 14,858 12,659 - - 86 - 33,369
Hunting & Trapping - 1 122 38 972 230 - 381 - 515 2,259
Grand Total 255,231 1,158,580 683,250 1,527,340 3,111,969 1,963,238 419,253 280,957 2,559,604 3,102,550 15,061,972
Page 104 of 130

Proportion of Borrowers by Industry (DB15)
[Total rural borrowers (numerical) for each industry by ABARE regions expressed as a percentage]
Number % Region
Industry 311 313 314 321 331 332 3121 3122 3221 3222 Total Borrowers
Beef 2% 7% 7% 9% 23% 7% 3% 3% 20% 21% 100%
Cotton 0% 0% 0% 35% 3% 0% 0% 0% 17% 45% 100%
Dairy 1% 2% 0% 33% 48% 11% 0% 0% 4% 2% 100%
Grain 0% 1% 0% 34% 14% 2% 0% 0% 18% 30% 100%
Grain/Grazing 0% 1% 1% 23% 12% 2% 0% 0% 13% 47% 100%
Horticulture - Tree Crops 3% 15% 0% 8% 39% 31% 0% 0% 2% 2% 100%
Horticulture - Vegetables 0% 5% 0% 17% 59% 18% 0% 0% 1% 1% 100%
Intensive Livestock 0% 4% 1% 25% 47% 5% 0% 1% 7% 11% 100%
Other 1% 6% 0% 12% 47% 18% 1% 0% 10% 4% 100%
Sheep/Wool 0% 1% 19% 23% 7% 0% 3% 25% 0% 22% 100%
Sugar 2% 1% 0% 0% 10% 87% 0% 0% 0% 0% 100%
Tobacco 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100%
Services To Agriculture 1% 2% 2% 23% 25% 19% 1% 1% 8% 18% 100%
Marine Fishing 3% 2% 0% 3% 50% 33% 0% 0% 2% 5% 100%
Forestry & Logging 0% 4% 1% 14% 69% 5% 1% 0% 1% 6% 100%
Aquaculture 5% 8% 0% 0% 46% 36% 0% 0% 4% 0% 100%
Hunting & Trapping 0% 3% 14% 4% 27% 18% 4% 8% 0% 22% 100%
All Borrowers 1% 5% 3% 14% 26% 21% 1% 1% 11% 17% 100%
Page 105 of 130

Proportion of Borrowings by Industry (DB16)
[Total rural borrowings (value) for each industry by ABARE regions expressed as a percentage]
Amount % Region
Beef 3% 12% 8% 5% 17% 9% 5% 3% 23% 16% 100%
Cotton 0% 0% 0% 22% 3% 0% 0% 0% 16% 59% 100%
Dairy 0% 3% 0% 26% 52% 13% 0% 0% 4% 1% 100%
Grain 0% 1% 0% 25% 12% 2% 0% 0% 18% 42% 100%
Grain/Grazing 0% 1% 1% 12% 9% 1% 0% 0% 19% 57% 100%
Other 1% 7% 0% 14% 46% 17% 1% 0% 9% 4% 100%
Sheep/Wool 0% 3% 26% 13% 6% 0% 1% 26% 0% 25% 100%
Sugar 2% 2% 0% 0% 10% 79% 0% 0% 0% 7% 100%
Tobacco 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Marine Fishing 1% 2% 0% 3% 58% 28% 0% 0% 4% 5% 100%
Aquaculture 9% 8% 0% 0% 45% 38% 0% 0% 0% 0% 100%
All Borrowers 2% 8% 5% 10% 21% 13% 3% 2% 17% 21% 100%
Page 106 of 130

Proportion of Borrowers by Region (DB17)
[Total rural borrowers (numerical) for each industry expressed as a percentage of all rural industries within ABARE regions]
Number % Region
Beef 50% 56% 82% 22% 33% 12% 84% 71% 64% 46% 36%
Cotton 0% 0% 0% 6% 0% 0% 0% 0% 4% 7% 2%
Dairy 1% 1% 0% 7% 5% 1% 0% 0% 1% 0% 3%
Grain 0% 1% 0% 11% 2% 1% 0% 0% 7% 8% 5%
Grain/Grazing 1% 1% 2% 10% 3% 1% 1% 2% 7% 17% 6%
Other 2% 4% 0% 2% 5% 2% 1% 1% 2% 1% 3%
Sheep/Wool 0% 0% 5% 1% 0% 0% 2% 12% 0% 1% 1%
Sugar 17% 3% 0% 0% 5% 54% 0% 0% 0% 0% 13%
Tobacco 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Marine Fishing 6% 1% 0% 1% 4% 3% 1% 0% 0% 1% 2%
Aquaculture 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Grand Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Page 107 of 130

Proportion of Borrowings by Region (DB18)
[Total rural borrowings (value) for each industry expressed as a percentage of all rural industries within ABARE regions]
Amount % Region
Beef 85% 84% 94% 25% 44% 38% 98% 89% 74% 43% 55%
Cotton 0% 0% 0% 15% 1% 0% 0% 0% 6% 19% 7%
Dairy 0% 1% 0% 5% 5% 2% 0% 0% 0% 0% 2%
Grain 0% 1% 0% 16% 4% 1% 0% 0% 7% 13% 7%
Grain/Grazing 0% 1% 1% 7% 3% 0% 0% 1% 7% 17% 6%
Other 1% 2% 0% 3% 4% 2% 1% 0% 1% 0% 2%
Sheep/Wool 0% 0% 4% 1% 0% 0% 0% 9% 0% 1% 1%
Sugar 6% 2% 0% 0% 3% 36% 0% 0% 0% 2% 6%
Tobacco 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Marine Fishing 0% 0% 0% 0% 3% 2% 0% 0% 0% 0% 1%
Aquaculture 1% 0% 0% 0% 0% 1% 0% 0% 0% 0% 0%
Grand Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Page 108 of 130

DEBT BY INDUSTRY, RATING AND REGION
Number of Beef Business Borrowers (DB19)
Number Loan Rating

311 Cape & Carpentaria 55 33 18 1 0 107
313 Central Nth 197 149 66 3 3 417
314 Central Sth 218 132 41 1 0 392
321 Eastern Downs 241 193 66 8 1 509
331 Central Sth Coast 695 502 160 16 2 1,374
332 Tropical Nth Coast 230 111 57 5 2 404
3121 West 108 47 9 0 1 165
3122 Sth West 83 51 19 0 1 155
3221 Central 779 280 101 17 4 1,181
3222 Maranoa/Wst Dwn 520 552 171 7 2 1,253
Grand Total 3,126 2,049 708 58 15 5,956

Amount of Beef Business Borrowings (DB20)

311 Cape & Carpentaria 140,650 46,906 11,202 18,706 - 217,464
313 Central Nth 480,896 297,963 134,425 53,239 5,378 971,901
314 Central Sth 436,579 119,932 86,145 1,407 - 644,062
321 Eastern Downs 181,466 101,409 75,574 14,751 13,158 386,358
331 Central Sth Coast 821,828 281,955 241,811 29,994 6,670 1,382,259
332 Tropical Nth Coast 513,200 132,932 54,088 25,742 24,545 750,507
3121 West 270,323 74,368 20,061 41,131 4,550 410,433
3122 Sth West 157,459 64,910 23,923 3,096 118 249,506
3221 Central 1,428,836 304,401 94,271 54,838 6,700 1,889,046
3222 Maranoa/Wst Dwn 719,125 393,176 199,059 25,179 6,807 1,343,346
Grand Total 5,150,364 1,817,952 940,558 268,082 67,926 8,244,881
Page 109 of 130

Number of Cotton Business Borrowers (DB21)
Number Loan Rating

321 Eastern Downs 87 41 12 1 - 141
331 Central Sth Coast 9 2 4 - - 14
332 Tropical Nth Coast 1 - - - - 1
3221 Central 44 16 8 1 1 68
3222 Maranoa/Wst Dwn 64 68 38 3 6 179
Grand Total 203 127 62 4 7 402

Amount of Cotton Business Borrowings (DB22)

321 Eastern Downs 143,475 45,123 32,995 840 222,433
331 Central Sth Coast 15,563 4,155 6,844 26,562
332 Tropical Nth Coast 1,037 1,037
3221 Central 109,688 31,757 18,885 2,514 14 162,858
3222 Maranoa/Wst Dwn 216,656 114,418 79,258 51,832 129,192 591,356
Grand Total 486,418 195,453 137,982 55,186 129,205 1,004,246
Page 110 of 130

Number of Dairy Business Borrowers (DB23)
Number Loan Rating

311 Cape & Carpentaria - 2 - - - 2
313 Central Nth 8 1 - - - 9
321 Eastern Downs 76 60 15 1 1 151
331 Central Sth Coast 153 47 15 2 1 218
332 Tropical Nth Coast 28 15 5 0 - 48
3121 West - - - - - -
3122 Sth West 1 - - - - 1
3221 Central 13 4 1 1 1 20
3222 Maranoa/Wst Dwn 2 4 1 - - 7
Grand Total 280 134 37 4 2 457

Amount of Dairy Business Borrowings (DB24)

313 Central Nth 5,768 3,972 - - - 9,741
314 Central Sth - - - - - -
321 Eastern Downs 39,169 17,646 10,749 300 6,218 74,081
331 Central Sth Coast 91,415 19,615 20,266 14,341 610 146,247
332 Tropical Nth Coast 22,951 10,815 2,565 61 - 36,392
3121 West 49 - - - - 49
3122 Sth West 156 - - - - 156
3221 Central 8,457 1,097 402 884 5 10,845
3222 Maranoa/Wst Dwn 2,066 124 51 - - 2,241
Grand Total 170,032 53,606 34,032 15,586 6,833 280,088
Page 111 of 130

Number of Grain Business Borrowers (DB25)
Number Loan Rating

311 Cape & Carpentaria 1 - - - - 1
313 Central Nth 1 5 - - - 6
314 Central Sth - 1 - - - 1
321 Eastern Downs 156 70 26 2 1 254
332 Tropical Nth Coast 10 2 5 - - 18
3122 Sth West - 1 - - - 1
3221 Central 95 29 9 1 1 134
3222 Maranoa/Wst Dwn 114 60 50 3 - 227
Grand Total 444 192 100 6 2 743

Amount of Grain Business Borrowings (DB26)

311 Cape & Carpentaria 434 - - - - 434
313 Central Nth 2,316 5,920 - - - 8,235
314 Central Sth - 5 - - - 5
321 Eastern Downs 172,916 46,697 22,037 6,437 1,260 249,346
331 Central Sth Coast 75,565 35,786 5,452 362 750 117,916
332 Tropical Nth Coast 11,454 2,695 7,336 - - 21,485
3122 Sth West - 34 - - - 34
3221 Central 108,117 36,595 32,056 832 29 177,629
3222 Maranoa/Wst Dwn 327,467 34,756 42,529 7,201 - 411,954
Grand Total 698,268 162,488 109,411 14,833 2,039 987,038
Page 112 of 130

Number of Grain/Grazing Business Borrowers (DB27)
Number Loan Rating

Total
311 Cape & Carpentaria - 1 1 - - 1
313 Central Nth 3 7 1 - - 11
314 Central Sth 3 4 3 - - 10
321 Eastern Downs 91 111 33 3 1 238
331 Central Sth Coast 59 52 12 1 - 123
3121 West 1 2 - - - 3
3122 Sth West 2 1 1 - - 4
3221 Central 84 37 13 - - 134
3222 Maranoa/Wst Dwn 214 168 76 13 4 476
Grand Total 467 390 141 17 5 1,020

Amount of Grain/Grazing Business Borrowings (DB28)

311 Cape & Carpentaria 155 29 117 - - 301
313 Central Nth 1,512 7,864 741 - - 10,118
314 Central Sth 1,669 1,885 1,459 - - 5,013
321 Eastern Downs 32,607 42,846 26,682 4,170 210 106,515
331 Central Sth Coast 36,771 27,322 15,891 1,809 - 81,792
332 Tropical Nth Coast 7,571 1,655 71 - - 9,296
3121 West 925 104 90 - - 1,120
3122 Sth West 532 45 1,927 - - 2,504
3221 Central 112,635 52,391 7,849 - - 172,875
3222 Maranoa/Wst Dwn 264,967 138,284 95,552 11,297 11,414 521,514
Grand Total 459,344 272,425 150,378 17,276 11,625 911,048
Page 113 of 130

Number of Horticulture – Tree Crops Business Borrowers (DB29)
Number Loan Rating

Total
313 Central Nth 65 46 7 1 1 121
321 Eastern Downs 35 17 9 - 1 61
332 Tropical Nth Coast 159 71 18 0 0 248
3122 Sth West 1 1 - - - 2
3221 Central 11 3 1 - - 15
3222 Maranoa/Wst Dwn 3 9 1 - - 14
Grand Total 449 267 68 5 3 792

Amount of Horticulture – Tree Crops Business Borrowings (DB30)

311 Cape & Carpentaria 5,090 3,207 2,796 11,093
313 Central Nth 38,819 13,968 7,878 1,712 951 63,328
321 Eastern Downs 57,681 5,878 10,889 1,619 76,067
332 Tropical Nth Coast 108,671 18,511 12,987 393 190 140,752
3122 Sth West 59 168 227
3221 Central 20,878 747 687 22,311
3222 Maranoa/Wst Dwn 1,916 6,724 595 9,236
Grand Total 397,965 109,708 82,566 14,121 3,475 607,834
Page 114 of 130

Number of Horticulture - Vegetables Business Borrowers (DB31)
Number Loan Rating

311 Cape & Carpentaria 2 1 - - - 3
313 Central Nth 20 15 1 0 - 36
321 Eastern Downs 61 60 6 6 1 133
3121 West 1 - - - - 1
3122 Sth West - - - - - -
3221 Central 4 2 - - - 6
3222 Maranoa/Wst Dwn 2 4 1 - - 7
Grand Total 470 283 37 8 5 802

Amount of Horticulture - Vegetables Business Borrowings (DB32)

311 Cape & Carpentaria 91 11 - - - 102
313 Central Nth 10,248 8,391 389 39 - 19,067
321 Eastern Downs 38,277 52,472 7,133 2,094 5 99,980
331 Central Sth Coast 162,759 69,361 48,372 5,532 17,951 303,975
332 Tropical Nth Coast 66,658 24,048 1,153 153 - 92,012
3121 West - - - - - -
3122 Sth West - - - - - -
3221 Central 6,753 43 - - - 6,796
3222 Maranoa/Wst Dwn 166 4,675 178 - - 5,019
Grand Total 284,951 159,002 57,224 7,817 17,955 526,950
Page 115 of 130

Number of Intensive Livestock Business Borrowers (DB33)
Number Loan Rating

313 Central Nth 10 7 2 - - 19
314 Central Sth 3 3 - - - 6
321 Eastern Downs 60 42 11 0 - 114
3121 West 1 1 - - - 1
3122 Sth West 1 2 - - - 2
3221 Central 18 12 1 - - 31
3222 Maranoa/Wst Dwn 20 23 2 3 - 48
Grand Total 214 185 47 7 4 458

Amount of Intensive Livestock Business Borrowings (DB34)

313 Central Nth 5,653 4,696 1,836 - - 12,184
314 Central Sth 178 145 - - - 323
321 Eastern Downs 52,717 50,229 16,961 3,871 - 123,778
331 Central Sth Coast 150,707 57,170 12,634 13,045 4,460 238,016
3121 West 33 0 - - - 33
3122 Sth West 606 103 - - - 709
3221 Central 8,783 6,069 126 - - 14,977
3222 Maranoa/Wst Dwn 25,073 18,340 1,653 1,255 - 46,320
Grand Total 249,519 145,123 41,752 18,170 4,460 459,023
Page 116 of 130

Number of Other Business Borrowers (DB35)
Number Loan Rating

313 Central Nth 17 5 6 - - 28
314 Central Sth 1 - - - - 1
321 Eastern Downs 34 13 3 - - 50
3121 West 1 2 - - - 2
3122 Sth West 2 - - - - 2
3221 Central 26 12 4 1 1 44
3222 Maranoa/Wst Dwn 14 2 1 1 - 18
Grand Total 261 125 34 4 6 431

Amount of Other Business Borrowings (DB36)

311 Cape & Carpentaria 1,017 815 12 - - 1,844
313 Central Nth 14,685 3,129 1,950 - - 19,765
314 Central Sth 300 - - - - 300
321 Eastern Downs 29,760 7,016 1,669 - - 38,445
331 Central Sth Coast 87,504 24,836 7,744 952 8,192 129,228
3121 West 257 3,235 - - - 3,492
3122 Sth West 862 - - - - 862
3221 Central 15,280 5,285 2,544 344 720 24,173
3222 Maranoa/Wst Dwn 10,220 665 531 780 - 12,195
Grand Total 201,188 50,440 16,301 2,076 8,912 278,917
Page 117 of 130

Number of Sheep/Wool Business Borrowers (DB37)
Number Loan Rating

313 Central Nth 1 - 1 - - 2
314 Central Sth 15 4 3 - - 21
321 Eastern Downs 12 9 4 0 - 26
331 Central Sth Coast 3 3 1 - 0 7
332 Tropical Nth Coast - - - - - -
3121 West 1 1 1 - - 3
3122 Sth West 19 7 1 0 0 27
3222 Maranoa/Wst Dwn 9 12 3 - - 24
Grand Total 62 37 12 0 0 111

Amount of Sheep/Wool Business Borrowings (DB38)

313 Central Nth 3,122 - 121 - - 3,244
314 Central Sth 17,144 3,267 3,612 - - 24,023
321 Eastern Downs 5,296 3,437 1,815 1,459 - 12,007
331 Central Sth Coast 119 1,864 3,590 - 152 5,726
332 Tropical Nth Coast - - - - - -
3121 West 624 199 249 - - 1,071
3122 Sth West 15,635 4,662 232 853 2,984 24,366
3222 Maranoa/Wst Dwn 14,975 6,403 1,729 - - 23,108
Grand Total 56,916 19,833 11,348 2,312 3,137 93,545
Page 118 of 130

Number of Sugar Business Borrowers (DB39)
Number Loan Rating

311 Cape & Carpentaria 15 20 3 - 0 37
313 Central Nth 12 5 2 - - 19
321 Eastern Downs 1 - - - - 1
332 Tropical Nth Coast 1,075 691 99 2 1 1,867
3221 Central 1 2 - - - 2
3222 Maranoa/Wst Dwn 0 - 5 - - 5
Grand Total 1,236 773 132 3 1 2,145

Amount of Sugar Business Borrowings (DB40)

311 Cape & Carpentaria 7,262 6,935 629 - 22 14,848
313 Central Nth 14,570 3,592 1,043 - - 19,205
321 Eastern Downs 694 - - - - 694
332 Tropical Nth Coast 492,898 171,082 37,109 727 344 702,159
3221 Central 4 3,599 - - - 3,602
3222 Maranoa/Wst Dwn 243 - 63,438 - - 63,681
Grand Total 576,448 196,866 112,755 3,033 1,266 890,369
Page 119 of 130

Number of Tobacco Business Borrowers (DB41)
Tobacco industry not reported in RDQ 09.

Amount of Tobacco Business Borrowings (DB42)
Tobacco industry not reported in RDQ 09.
Now replaced by

Number of Services to Agriculture Business Borrowers (DB41)
Number Loan Rating

313 Central Nth 16 37 5 - 1 58
314 Central Sth 15 23 3 - 1 42
321 Eastern Downs 81 402 78 1 3 566
332 Tropical Nth Coast 142 311 19 - 3 476
3121 West 5 14 - - - 19
3122 Sth West 7 13 - 1 1 22
3221 Central 68 103 29 2 1 202
3222 Maranoa/Wst Dwn 93 298 40 2 6 439
Grand Total 612 1,596 225 7 17 2,457

Amount of Services to Agriculture Business Borrowings (DB42)

311 Cape & Carpentaria 2,155 2,096 139 - - 4,390
313 Central Nth 2,644 12,150 104 - 3 14,900
314 Central Sth 3,543 5,303 312 - - 9,158
321 Eastern Downs 20,898 26,798 76,614 4,800 625 129,736
331 Central Sth Coast 63,110 63,115 23,178 77 5,898 155,378
332 Tropical Nth Coast 51,610 24,051 4,301 - 523 80,485
3121 West 1,155 1,630 - - - 2,785
3122 Sth West 665 1,258 - 228 20 2,171
3221 Central 43,677 20,094 2,611 806 0 67,188
3222 Maranoa/Wst Dwn 30,087 29,907 2,988 246 632 63,861
Grand Total 219,544 186,401 110,248 6,157 7,701 530,052
Page 120 of 130

DEBT BY REGION, RATING AND INDUSTRY
Number of Borrowers in Region 311 – Cape & Carpentaria (DB43)
Number Loan Rating

Beef 35 31 18 1 - 85
Cotton - 1 - - - 1
Dairy - 2 - - - 2
Grain 1 - - - - 1
Grain/Grazing 1 2 1 - - 3
Horticulture - Tree Crops 6 9 - - - 15
Horticulture - Vegetables 8 1 1 - - 11
Other 3 - - - - 3
Sugar 10 19 2 - - 32
Tobacco 1 - - - - 1
Marine Fishing 3 8 1 - - 12
Aquaculture 2 - 1 - - 2
Grand Total 93 75 24 1 0 194
Amount of Borrowings in Region 311 – Cape & Carpentaria (DB44)

Beef 87,617 45,526 10,463 18,554 - 162,160
Cotton - 14 - - - 14
Dairy - 337 - - - 337
Grain 434 - - - - 434
Grain/Grazing 8,176 66 540 - - 8,782
Horticulture - Tree Crops 357 1,757 - - - 2,115
Horticulture - Vegetables 4,824 1,460 2,796 - - 9,080
Intensive Livestock 50,285 3,590 900 152 22 54,947
Other 373 - - - - 373
Sugar 1,990 5,517 58 - - 7,565
Tobacco 644 - - - - 644
Services To Agriculture 2,155 2,096 139 - - 4,390
Marine Fishing 283 758 234 - - 1,274
Aquaculture 3,100 - 16 - - 3,116
Grand Total 160,238 61,120 15,145 18,706 22 255,231
Page 121 of 130

Number of Borrowers in Region 313 – Central North (DB45)
Number Loan Rating

Beef 135 142 62 2 3 344
Cotton 6 3 4 - - 13
Dairy 8 1 - - - 9
Grain 3 5 - - - 8
Grain/Grazing 19 10 4 0 - 33
Horticulture - Vegetables 27 15 3 - 0 45
Other 4 - 2 - - 5
Sheep/Wool 1 - 1 - - 1
Sugar 6 5 2 - - 12
Tobacco 6 3 - - - 9
Services To Agriculture 15 37 5 - 1 57
Marine Fishing 5 1 1 - 1 8
Aquaculture 2 1 - - - 4
Hunting & Trapping - 1 - - - 1
Grand Total 358 282 91 5 6 742
Amount of Borrowings in Region 313 – Central North (DB46)

Beef 254,187 243,127 125,569 47,219 2,985 673,087
Cotton 1,009 760 1,190 - - 2,959
Dairy 5,768 3,972 - - - 9,741
Grain 3,640 5,920 - - - 9,560
Grain/Grazing 41,926 17,942 5,548 39 - 65,455
Horticulture - Tree Crops 29,179 12,438 4,849 1,712 869 49,047
Horticulture - Vegetables 14,962 9,793 3,418 - 82 28,255
Other 8,939 - 208 - - 9,147
Sheep/Wool 255 - 121 - - 376
Sugar 3,836 3,592 238 - - 7,666
Tobacco 2,878 875 - - - 3,753
Services To Agriculture 2,195 12,150 104 - 3 14,452
Marine Fishing 3,748 197 120 - 61 4,126
Aquaculture 2,601 49 - - - 2,650
Hunting & Trapping - 1 - - - 1
Grand Total 586,225 362,214 148,644 55,002 6,494 1,158,580
Page 122 of 130

Number of Borrowers in Region 314 – Central South (DB47)
Number Loan Rating

Beef 106 102 34 - - 243
Dairy - - - - - -
Grain - 1 - - - 1
Intensive Livestock 84 7 1 1 - 92
Other 1 - - - - 1
Sheep/Wool 5 4 3 - - 12
Services To Agriculture 15 23 3 - 1 42
Forestry & Logging 1 - - - - 1
Hunting & Trapping 2 1 - - - 2
Grand Total 257 167 50 1 1 476
Amount of Borrowings in Region 314 – Central South (DB48)

Beef 181,427 84,813 72,634 - - 338,874
Dairy - - - - - -
Grain - 5 - - - 5
Grain/Grazing 69,199 20,380 9,085 1,401 - 100,064
Intensive Livestock 203,109 16,769 5,952 5 - 225,836
Other 300 - - - - 300
Sheep/Wool 1,835 3,267 3,545 - - 8,646
Services To Agriculture 3,543 5,303 312 - - 9,158
Forestry & Logging 244 - - - - 244
Grand Total 459,698 130,617 91,528 1,407 - 683,250
Page 123 of 130

Number of Borrowers in Region 321 – Eastern Downs (DB49)
Number Loan Rating

Beef 152 171 61 7 1 392
Cotton 81 46 13 1 - 141
Dairy 76 60 15 1 1 151
Grain 156 70 26 2 1 254
Grain/Grazing 116 124 37 4 1 282
Horticulture - Tree Crops 32 17 9 - 1 57
Other 11 1 1 - - 13
Sheep/Wool 8 9 4 - - 21
Tobacco 13 6 1 - - 20
Services To Agriculture 80 402 78 1 3 565
Marine Fishing 9 - 4 1 - 13
Forestry & Logging 6 14 3 - 1 24
Hunting & Trapping 1 - - - - 1
Grand Total 948 1,032 269 23 9 2,280
Amount of Borrowings in Region 321 – Eastern Downs (DB50)

Beef 94,030 61,685 66,491 7,980 139 230,325
Cotton 123,926 41,935 34,032 840 - 200,732
Dairy 39,169 17,646 10,749 300 6,218 74,081
Grain 172,916 46,697 22,037 6,437 1,260 249,346
Grain/Grazing 40,692 46,775 28,617 5,695 215 121,995
Horticulture - Vegetables 52,952 52,661 6,874 2,094 144 114,725
Horticulture - Tree Crops 37,448 5,456 10,438 - 1,475 54,816
Other 16,904 155 430 - - 17,489
Sheep/Wool 471 3,071 1,263 - - 4,805
Tobacco 10,805 1,010 19 - - 11,834
Services To Agriculture 20,413 26,798 76,614 4,800 625 129,251
Marine Fishing 3,810 - 935 191 - 4,937
Forestry & Logging 1,248 1,769 373 - 20 3,410
Hunting & Trapping 38 - - - - 38
Grand Total 779,567 401,320 284,426 38,913 23,114 1,527,340
Page 124 of 130

Number of Borrowers in Region 331 – Central South Coast (DB51)
Number Loan Rating

Beef 695 502 160 16 2 1,374
Cotton 9 2 4 - - 14
Dairy 153 47 15 2 1 218
Grain 67 24 9 1 1 102
Other 107 74 14 2 5 202
Sheep/Wool 3 3 1 - 0 7
Sugar 133 56 24 1 1 214
Tobacco 0 - - - - 0
Marine Fishing 101 50 24 1 1 177
Forestry & Logging 36 63 9 - 4 112
Aquaculture 9 6 5 1 - 20
Grand Total 2,099 1,614 410 34 25 4,182
Amount of Borrowings in Region 331 – Central South Coast (DB52)

Beef 821,828 281,955 241,811 29,994 6,670 1,382,259
Cotton 15,563 4,155 6,844 - - 26,562
Dairy 91,415 19,615 20,266 14,341 610 146,247
Grain 75,565 35,786 5,452 362 750 117,916
Grain/Grazing 36,771 27,322 15,891 1,809 - 81,792
Horticulture - Tree Crops 164,850 60,504 46,734 12,016 716 284,820
Other 87,504 24,836 7,744 952 8,192 129,228
Sheep/Wool 119 1,864 3,590 - 152 5,726
Sugar 60,777 11,659 10,536 2,307 900 86,178
Tobacco - - - - - -
Services To Agriculture 63,110 63,115 23,178 77 5,898 155,378
Marine Fishing 47,550 11,984 28,813 2,873 326 91,547
Forestry & Logging 24,100 17,680 2,451 115 2,148 46,495
Aquaculture 11,492 1,264 2,062 40 - 14,858
Grand Total 1,814,846 688,509 476,378 83,462 48,774 3,111,969
Page 125 of 130

Number of Borrowers in Region 332 – Tropical North Coast (DB53)
Number Loan Rating

Beef 160.8 101.6 54.8 3.7 0.5 321
Cotton 13.6 7.1 2.6 0.6 - 24
Dairy 27.8 15.5 5.1 0.1 - 48
Grain 10.4 2.1 5.2 - - 18
Grain/Grazing 37.0 13.0 3.3 - - 53
Horticulture - Tree Crops 133.6 69.1 13.1 - - 216
Horticulture - Vegetables 97.4 50.3 7.4 0.7 0.1 156
Intensive Livestock 314.3 27.9 7.1 1.1 1.5 352
Other 27.1 0.5 3.0 - - 31
Sheep/Wool - - - - - -
Sugar 837.3 677.4 95.3 1.8 0.5 1,612
Tobacco 12.2 7.7 - - - 20
Services To Agriculture 132.5 311.1 19.4 - 2.7 466
Marine Fishing 60.8 52.9 12.2 1.9 0.6 128
Forestry & Logging 3.5 4.0 - - - 7
Aquaculture 4.6 10.9 1.5 - 0.1 17
Hunting & Trapping - 2.4 0.6 - - 3
Grand Total 1,872.7 1,353.6 230.7 10.0 6.0 3,473
Amount of Borrowings in Region 332 – Tropical North Coast (DB54)

Beef 513,200 132,932 54,088 25,742 24,545 750,507
Cotton 1,037 - - - - 1,037
Dairy 22,951 10,815 2,565 61 - 36,392
Grain 11,454 2,695 7,336 - - 21,485
Grain/Grazing 7,571 1,655 71 - - 9,296
Horticulture - Tree Crops 108,671 18,511 12,987 393 190 140,752
Horticulture - Vegetables 66,658 24,048 1,153 153 - 92,012
Intensive Livestock 5,771 8,344 8,542 - - 22,656
Other 41,302 5,460 1,851 - - 48,613
Sheep/Wool - - - - - -
Sugar 492,898 171,082 37,109 727 344 702,159
Services To Agriculture 51,610 24,051 4,301 - 523 80,485
Marine Fishing 26,647 12,818 3,656 866 402 44,389
Forestry & Logging 200 366 - - - 566
Aquaculture 1,616 9,483 1,060 - 500 12,659
Hunting & Trapping - 179 51 - - 230
Grand Total 1,351,584 422,439 134,769 27,942 26,504 1,963,238
Page 126 of 130

Number of Borrowers in Region 3121 – West (DB55)
Number Loan Rating

Industry A B+ B1 B2 Grand Total
Beef 83 29 7 - 119
Cotton - 1 - - 1
Dairy - - - - -
Horticulture - Vegetables 1 - - - 1
Grain/Grazing 9 17 2 - 29
Intensive Livestock 18 2 - 0 20
Other 1 1 - - 1
Sheep/Wool 1 1 1 - 2
Services To Agriculture 5 14 - - 19
Marine Fishing 1 - - - 1
Forestry & Logging - 1 - - 1
Hunting & Trapping - 1 - - 1
Grand Total 117 68 10 0 196
Amount of Borrowings in Region 3121 – West (DB56)

Industry A B+ B1 B2 Grand Total
Beef 205,142 58,808 13,203 - 277,152
Cotton - 2,875 - - 2,875
Dairy 49 - - - 49
Horticulture - Vegetables - - - - -
Grain/Grazing 22,240 14,091 6,948 - 43,279
Intensive Livestock 44,522 1,574 - 41,131 87,227
Other 257 360 - - 617
Sheep/Wool - 199 249 - 447
Services To Agriculture 1,155 1,630 - - 2,785
Marine Fishing 226 - - - 226
Forestry & Logging - 45 - - 45
Hunting & Trapping - - - - -
Grand Total 273,592 79,581 20,399 41,131 414,703
Page 127 of 130

Number of Borrowers in Region 3122 – South West (DB57)
Number Loan Rating

Beef 83 51 19 0 1 155
Dairy 1 - - - - 1
Horticulture - Vegetables - - - - - -
Grain - 1 - - - 1
Intensive Livestock 1 2 - - - 2
Other 2 - - - - 2
Sheep/Wool 19 7 1 0 0 27
Services To Agriculture 7 13 - 1 1 22
Marine Fishing 1 - - - - 1
Grand Total 118 77 21 1 1 218

Amount of Borrowings in Region 3122 – South West (DB58)

Beef 157,459 64,910 23,923 3,096 118 249,506
Dairy 156 - - - - 156
Horticulture - Vegetables - - - - - -
Grain - 34 - - - 34
Grain/Grazing 532 45 1,927 - - 2,504
Intensive Livestock 606 103 - - - 709
Other 862 - - - - 862
Sheep/Wool 15,635 4,662 232 853 2,984 24,366
Services To Agriculture 665 1,258 - 228 20 2,171
Marine Fishing 29 - 11 - - 40
Grand Total 176,374 71,191 26,092 4,177 3,122 280,957
Page 128 of 130

Number of Borrowers in Region 3221 – Central (DB59)
Number Loan Rating

Beef 540 255 99 16 2 912
Cotton 26 19 10 1 1 57
Dairy 13 4 1 1 1 20
Grain 95 29 9 1 1 134
Horticulture - Tree Crops 10 3 1 - - 14
Other 6 2 2 - - 9
Sugar 1 2 - - - 2
Tobacco 18 6 - - - 24
Marine Fishing 7 2 2 - - 11
Forestry & Logging 1 1 - - - 2
Grand Total 1,149 504 169 22 7 1,850
Amount of Borrowings in Region 3221 – Central (DB60)

Beef 1,136,953 168,166 75,308 42,767 6,403 1,429,597
Cotton 56,121 31,949 19,685 2,858 720 111,333
Dairy 8,457 1,097 402 884 5 10,845
Grain 108,117 36,595 32,056 832 29 177,629
Grain/Grazing 115,360 53,938 14,551 - - 183,849
Horticulture - Tree Crops 20,040 747 648 - - 21,434
Horticulture - Vegetables 6,151 43 39 - - 6,233
Intensive Livestock 355,283 141,586 13,713 12,070 311 522,963
Other 6,429 3,383 266 - - 10,077
Sugar 4 3,599 - - - 3,602
Tobacco 6,517 881 151 - - 7,549
Services To Agriculture 38,224 20,094 2,611 806 0 61,736
Marine Fishing 7,633 989 3,042 - - 11,663
Forestry & Logging 425 582 - - - 1,007
Grand Total 1,865,784 463,663 162,472 60,218 7,468 2,559,604
Page 129 of 130

Number of Borrowers in Region 3222 – Maranoa/Western Downs (DB61)
Number Loan Rating

Beef 520 552 171 7 2 1,253
Cotton 64 68 38 3 6 179
Dairy 2 4 1 - - 7
Grain 114 60 50 3 - 227
Grain/Grazing 214 168 76 13 4 476
Horticulture - Tree Crops 3 9 1 - - 14
Intensive Livestock 20 23 2 3 - 48
Other 14 2 1 1 - 18
Sheep/Wool 9 12 3 - - 24
Sugar 0 - 5 - - 5
Marine Fishing 14 2 1 1 - 17
Forestry & Logging 3 3 3 1 - 10
Grand Total 1,075 1,209 395 32 18 2,729
Amount of Borrowings in Region 3222 – Maranoa/Western Downs (DB62)

Beef 431,373 348,698 167,942 16,839 5,100 969,951
Cotton 179,708 103,078 67,691 52,612 129,192 532,281
Dairy 2,066 124 51 - - 2,241
Grain 327,467 34,756 42,529 7,201 - 411,954
Grain/Grazing 296,847 146,080 107,748 13,368 11,414 575,457
Horticulture - Tree Crops 1,916 6,724 595 - - 9,236
Horticulture - Vegetables 166 2,710 178 - - 3,053
Other 5,142 - 65 - - 5,207
Sheep/Wool 8,199 5,146 1,700 - - 15,044
Sugar - - 63,438 - - 63,438
Tobacco 4,558 16 - - - 4,574
Services To Agriculture 21,724 29,907 2,988 246 632 55,498
Marine Fishing 13,203 499 1,642 194 - 15,538
Forestry & Logging 168 449 398 17 - 1,032
Aquaculture 6 - - - - 6
Grand Total 1,618,101 748,803 489,601 98,001 148,045 3,102,550
Page 130 of 130

Rural Debt Survey Report - Final July 2010

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Rural Debt Survey Report - Final July 2010

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Supporting Queensland Industry

Rural Debt in Queensland

Under the terms of reference the survey was required to identify:

 the extent, nature and size of gross rural debt in Queensland;

Regional Level (10 Regions within Queensland)

Shire Level (73 Local Councils)

$3,241 million (27%)

Amount ($'000) 2009 2007 $ Change % Change

Total Debt $ 15,061,972 11,820,465 3,241,506 27%

Region 3221 Central $797m 25%

Region 3222 Maranoa/Wst Dwn $702m 22%

Region 331 Central Sth Coast $586 18%

(see Addendum Table 1; page 16)

The major increases in debt by Region from 1994 to 2009 were:

(see Addendum Table 2 ; page16)

The major movements in debt 1994 to 2009 were:

(see Addendum Table 3 ; page17)

Debt within Shires

Shire Shire as%

Banana Shire Council 10%

Region 3222 Maranoa / Western Downs 21%

Region 3221 Central 17%

Region 332 Tropical North Coast 13%

% of Total Debt Increase

Industry Regional / Shire Council % of industry Debt

The system is comprised of five categories:

The RDQ 09 Survey reflected the following movement in different categories:

Borrowers Movement 2007 - 2009 % Change

(see Addendum Table 6; page 19)

% Total Debt 2009 % Total Debt 2007 % Total Debt 2005

(see Addendum Table 5; page 18)

„A‟ „B+‟ „B1‟ „B2” „C”

Comparison of Debt to Production Volume

In periods up to 2003, detailed statistical information on the Gross Value of Production of

Shires % of Debt % of Growth 2007 - 2009

Comparison to RDQ 07 Survey

The increase in debt appears to be in line with industry expectations.

Movement In Debt 2007 – 2009

Movement in Rural Debt - 2007 to 2009

$800,000 311 Cape &Carpentaria

$700,000 313 Central Nth

Movement in Rural Debt ($'000) by

(Re industry debt as reported in RDQ 07)

Industry Services To Agriculture

Movement In Rural Debt by Industry 1994 – 2009

Value ($'000) 2009 2007 2005 2003 2001 1999

Category Number Number % Value Value %

COMPARISON OF DEBT TO PRODUCTION VOLUME

2009 15,061,972 168.5% 8,939,000 27.42% 7.76%

2007 11,820,465 142.5% 8,295,000 36.30% (2.07)%

2005 8,672,315 102.4% 8,470,000 12.53% 16.94%

2003 7,706,691 106.4% 7,243,000 15.65% (0.04)%

2001 6,663,555 92.0% 7,245,627 6.32% 7.02%

2000 6,267,652 92.6% 6,770,652 6.74% 6.13%

1999 5,871,748 92.0% 6,379,713 11.10% 8.96%

1998 5,285,061 90.3% 5,854,874 9.52% 3.13%

1997 4,825,535 85.0% 5,677,093 2.16% 6.72%

1996 4,723,330 88.8% 5,319,670 16.09% (2.68)%

1995 4,068,668 74.4% 5,466,416 5.01% 4.98%

1994 3,874,471 74.4% 5,206,927

Comparison of Total Debt V GVP

2009 2007 2005 2003 2001 2000 Axis

Movement in Debt & GVP