Rangeland Ecology & Management

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The Impact of Changing Equity Levels and Debt Structures on Western Queensland Grazing Properties and Associated Investment Issues
Author
Newman, P.A.
Publisher
Australian Rangeland Society
Publication Year
1992
Body

This study focussed on issues related to equity levels on grazing properties in western Queensland and also on the investment options used by producers over the period of the last half of the 1980's. With the favourable wool prices over much of the study period, debt levels across western Queensland grazing properties rose. Falling equity levels towards the end of the study were due mainly to a substantial drop in asset values. A significant rise in the proportion of funds loaned for land purchase was found and this was consistent with the 9% rise in average area over the period. Data on the benefits of expanding property size indicated that producers purchasing additional blocks of grazing land could afford to pay up to 10- 15% more and still be as well off as an individual with no existing land. Just over half of the producers were able to invest funds in additional areas as opposed to investing back into the existing property.

Language
English
Resource Type
Text
Document Type
Conference Paper
Conference Name
7th Australian Rangeland Society Biennial Conference
Keywords
investment
grazing lands
Australia
debt structure
equity levels
grazing properties
investment options
Queensland
Western Queensland