ESTABLISHING a state rural bank would jeopardise the agriculture industry's ability to expand through exports, according to Toowoomba South MP David Janetzki.

In one of his first addresses in State Parliament, Mr Janetzki spoke on the Farm Business Debt Mediation Bill amendment which has blocked banks foreclosing on Queensland farming properties without first offering mediation.

The amendment, passed with support from across the aisle, requires financial institutions to offer debt mediation to farmers in arrears.

But it was the concept of establishing a state rural bank to which Mr Janetzki objected, noting it had "for some time engendered considerable discussion".

The former Heritage Bank banking operations manager spoke on the "range of regulatory concerns" associated with the proposal, but it was the possible impact on the agriculture industry's ability to expand its exports that drew more attention.

"I have two major concerns with the proposal to enter into a state rural bank," he said.

"The first is that should a rural bank ever be established there would be a risk that it would impede the ability of primary producers and agribusiness related entities to access affordable finance.

"This would have the flow-through effect of a reduction in Australia's capability to benefit from the growing demand for our rural exports.

"What the big banks must realise is that they will always play a vital role in the future and commerciality of Australian agriculture and must act appropriately and responsibly when dealing with rural-based customers.

"I am an optimist and on the basis of my recent discussions with TSBE Food Leaders Australia CEO Ben Lyons, there is every reason to be optimistic about the Australian agriculture industry.

"It will become a $60 billion industry this year with the value of food and rural produce tipped to exceed $100b by 2025 as the food boom in Asia and their desire for protein and other Australian high-quality products hits home."

Minister for Agriculture and Fisheries, and Rural Economic Development Bill Byrne said the State Government backed the $17.32b primary industries sector.

"Queensland's agricultural sector is vulnerable to external pressures, such as climate and market forces, global financial events and changes in domestic rural credit policies.

"We want to ensure farming families experiencing financial difficulty are treated fairly by financial institutions when they are faced with the daunting prospect of selling property assets to repay loans."

Mr Janetzki said the "vast majority" of primary producers had effectively managed their debt, with 30% reporting no debt and a "further 25% owe less than $50,000", and said it was only the smaller banks which backed rural and regional communities.

"That said, we know there are debt hotspots and there are farmers and graziers in difficulty and families losing homes and farms, including some of my mates on the land," he said.

The Queensland Rural and Industry Development Authority comes into effect on July 1 and will oversee the process and accredit mediators.

Mr Byrne said the new legislation provided for the "efficient and equitable resolution of farm debt matters".

"Mediation is a confidential process and an alternative to expensive and drawn-out legal processes," he said.

"The legislation is not intrusive.

"It does not prevent financial institutions and producers from using informal negotiations to resolve their disputes.

"But if informal talks fail the lender will have to offer mediation before starting enforcement action."

The QRIDA is the new name of the QRAA from July 1.