debt servicing ratio (dsr) - rural


The debt service ratio represents the proportion of income used to meet interest payments is measured by expressing interest paid as a % of farm cash income plus interest paid. The average DSR for all broadacre farms was about 36.2% in 1991-92 a decrease of 9% from the previous year.

The increase in the DSR for the sheep, beef and sheep-beef industries reflects the fall in farm cash income which offset gains from lower interest payments. The debt service ratio is estimated to be about 22% for the dairy industry.