The purpose of this paper is to review current state of farm household's debt which is considered as one of the biggest problem in the rural community, to analyze the cause of farm household debt rising in Jeju province, and to make improvement schemes on how this problem of farm household debt could be alleviated. In order to achieve these objectives, raw data are collected from the interviews with 400 farming households in Jeju region. The results of the study are as follows; An average amount of total farm households debt was 42,000 thousand won in 2005, but an average of farm households debt excluding no debt farm households was increased by 10,000 thousand to 51,750 thousand won. But the debt properties are variable according to the farm type. Non-citrus farmers, younger farmers, rural area resident farmers hold more debt problems than other type. Among total farm households, 30 percent showed over 40 percent leverage ratio(debt/total assets), which is considered as risky or heavily indebted. Therefore, I designed a workout program and a program of land liquidation for heavily indebted farm households in Korea.