"While average farm debt has grown, farmers have also had to cope with the social pressures of drought on their families and communities," Mr Burke said.

"On top of all that, they have had the rising cost of inputs such as the global fuel price and global fertiliser prices.

"Average farm debt in Australia in 2006-07 was around $702,000 – up from $238,000 per farm for 2001-02 before the current drought."

Mr Burke said if the Reserve Bank's announcement was passed on in full by rural lenders, it would put more than $146 a month back in farming families' budgets.