"Don't tough it out on your own," agribusinesses urged
Banks pledged to continue supporting Australia’s agriculture sector at a roundtable discussion with the Australian Banking Association and the National Farmers Federation in Canberra, with ABA CEO Anna Bligh urging agribusiness to “not tough it out on your own.”
Lending to the agriculture sector remained robust, with a 13% year-on-year growth as businesses have borrowed a total of $117 billion, while banks continued to issue an average of 3,600 new loans monthly.
“The value of new bank loans to agribusinesses also continues to increase, with more than $8 billion extended in credit in the month of June 2023, compared to $7.8 billion in June 2022,” said Bligh (pictured above). “The agriculture sector continues to go from strength to strength and moreover has always demonstrated an ability to adapt to changing conditions.”
Still, banks acknowledged the challenges some businesses face in the current economic climate and urged early communication for those experiencing financial hardship or concerns.
“Australia’s agricultural sector proves time after time to have resilience at its core and this strong backbone will be essential as it faces into some unsettled conditions and a tough summer ahead,” Bligh said.
“Banks understand the economic ebb and flow of the agriculture sector and that sometimes extra assistance is required to get through a difficult period. Banks encourage any business experiencing financial difficulty to call their bank. Banks have a range of very practical tools that they can use to help.”
Banks offer various options to assist customers, including reducing home loan or credit card payments, adjusting the loan term, temporarily transitioning customers to interest-only payments, or granting payment deferrals for a period.
ABA recently introduced a Financial Assistance Hub, aimed at providing a comprehensive roadmap to overcome financial challenges, with a dedicated section catering to agribusinesses.
Visit the Financial Assistance Hub to learn about the assistance options offered by banks.
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