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Australian farm debt hit a record $135 billion due to high-tech investments, despite rising rates and drought.
Australian farm debt reached a record $135 billion, fueled by investments in high-tech machinery and infrastructure to cut labor and energy costs, even as interest rates rose and droughts persisted.
Borrowings more than doubled since 2014, with $140.3 billion in loans by September 2024, averaging $6.8 billion monthly—nearly double 2021 levels.
Despite rising debt, farm equity rose to 91% of debt in 2023–24, driven by strong land values and higher incomes, helping many producers manage obligations.
About half of broadacre farmers have little or no debt.
Major banks remain key lenders, supporting innovation and efficiency, while business confidence is improving, with one in three mid-sized agribusinesses expecting positive earnings.
La deuda agrícola australiana alcanzó un récord de 135 mil millones de dólares debido a las inversiones de alta tecnología, a pesar del aumento de las tasas y la sequía.