Farm equity levels in Australia are high by international standards with debt to equity ratios being on a declining trend over the long term. The average level of debt as a percentage of total farm equity (i.e. land value plus the net value of capital stock) of Australian farms has remained below 25% for the last decade (since 2001-02).
Debt as a percentage of total farm equity, 1991-92 to 2010-11
As of 2010-11 total farm debt as a percentage of total farm equity stood at 24%. Total farm debt for the Australian agriculture sector was AU$64 billion against total farm equity of AU$375 billion (being the sum of AU$265 billion of land value and AU$110 billion net capital stock).
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