This article explores perceptions of social capital and sustainability of farming and its contribution to regional development. A review of the literature highlights challenges in the operationalisation of social capital as a development tool and the limits of research that gauges community perceptions of the role of social capital in their region's development. The current study investigated stakeholder attitudes regarding regional development within a target region in North Queensland, Australia. Focus groups were conducted at a regional, state and national level. Findings suggest that stakeholders perceived social capital to be important for farming sustainability and regional development, but can variously help or hinder effective development. We find that, given the broad nature of stakeholders' perceptions, research should embrace social capital as a multidimensional construct that can have both positive and negative impacts on regional development depending on stage and context of development.