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Farmers

Farm Management Deposits Eases to $6.14 Billion Amidst Drought and Floods

Strategic Insights

— 1 min read

Droughts and floods nationwide have led to a decrease in farm management deposits (FMDs) to $6.14 billion, down $620 million from the 2022 record against a backdrop of challenging times. FMDs peaked at $6.76 billion three years ago, coinciding with a bumper series of seasons and the Covid era. The majority of operators are employing FMDs, with mixed pastoral and grains producers using the scheme the most, accounting for $1.39 billion in deposits as of July 31.

Key Takeaways:

  • FMDs have decreased to $6.14 billion, down $620 million from the 2022 record, amidst challenges from droughts and floods.
  • FMDs peaked at $6.76 billion three years ago, coinciding with a bumper series of seasons and the Covid era.
  • Mixed pastoral and grains producers were the biggest users of the scheme, with $1.39 billion in deposits as of July 31.
  • New data from the federal Department of Agriculture, Fisheries and Forestry confirmed that sole-focus grain farmers were the second-largest FMD investors, with $1.25 billion deposited as of last month.
  • Horticultural producers have been drawing down their FMD accounts over the past five years, with $622 million lodged by July 2025, down from a recent peak of $754 million in June 2020.
  • Beef farmers have maintained steady investment in FMDs, with $1 billion in June 2019 rising to nearly $1.05 billion this year.
  • The FMD scheme highlights the fiscal fundamentals of Australian agriculture are strong despite challenges from droughts and floods.
  • The number of FMD accounts dropped by 2500 during the June to July transition, indicating a big number have closed accounts and returned the deposited funds.

Statistics:

  • FMD deposits: $6.14 billion (down $620 million from 2022 record)
  • Total FMD accounts nationwide: 41,000 (as of July 31)
  • Victorian FMD accounts: 11,436 (25% of nationwide depositors)
  • NSW FMD accounts: 10,820
  • Queensland FMD accounts: 6,693
  • FMD deposits in 2015 (a decade ago): $2.48 billion

Sources:

  • By Alex Sinnott, Cash held in farm management deposits has eased to $6.14bn, down $620m from a 2022 deposit record against a background of drought and floods nationwide
  • NAB agribusiness general manager Khan Horne
  • Victorian Farmers Federation president Brett Hosking

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