lower for Western region grain producing farms, partly because of the larger average size of grain enterprises in this region. At 30 June 2013, the average equity ratio for Western region grain producing farms was estimated to have been 73 per cent and the average for both the Northern region and Southern region was 84 per cent. The proportion of farm receipts needed to fund interest payments on debt declined in all GRDC regions as a result of higher farm receipts from 2010‒11, lower interest rates and reduction in debt on some farms. The proportion is estimated to have reduced further in 2013‒14 to around 6 per cent in the Southern region and 8 per cent in the Western region, but is estimated to have increased to 12 per cent in the Northern GRDC region. In 2013‒14 the proportion of grain producing farms with high debt servicing commitments and relatively little capacity for further borrowing is estimated to have been historically low at around 6 per cent in the Southern region and around 10 per cent in the Western region. In the Northern region around 11 per cent of grain producing farms were estimated to have had relatively little capacity for further borrowing and high debt servicing commitments. This is a similar proportion to that recorded during drought in the Northern region in 1994‒95, 2002‒03 and 2004‒05.
lower for Western region grain producing farms, partly because of the larger average size of grain enterprises in this region. At 30 June 2013, the average equity ratio for Western region grain producing farms was estimated to have been 73 per cent and the average for both the Northern region and Southern region was 84 per cent. The proportion of farm receipts needed to fund interest payments on debt declined in all GRDC regions as a result of higher farm receipts from 2010‒11, lower interest rates and reduction in debt on some farms. The proportion is estimated to have reduced further in 2013‒14 to around 6 per cent in the Southern region and 8 per cent in the Western region, but is estimated to have increased to 12 per cent in the Northern GRDC region. In 2013‒14 the proportion of grain producing farms with high debt servicing commitments and relatively little capacity for further borrowing is estimated to have been historically low at around 6 per cent in the Southern region and around 10 per cent in the Western region. In the Northern region around 11 per cent of grain producing farms were estimated to have had relatively little capacity for further borrowing and high debt servicing commitments. This is a similar proportion to that recorded during drought in the Northern region in 1994‒95, 2002‒03 and 2004‒05.