November 25, 2020
There has been a large rise in financing for ag machinery, figures released this week by the Commonwealth Bank show.
In Queensland, lending has risen by 69 per cent compared with the same time last year.
“For many of Australia’s farmers, this year has been a rebound from drought with favourable growing conditions, a successful winter crop in many regions and strong optimism about yields and quality of harvest,” Commonwealth Bank executive general manager Grant Cairns said.
“Over the past few months we’ve seen financing in the sector increase dramatically – largely driven by farmers purchasing agricultural machinery for this year’s crop season.
“We’ve seen asset finance for ag machinery, particularly tractors and harvesters, increase significantly. Across the country, new asset financing for tractors is up 119 per cent – the highest volumes with seen in the past three years, and financing for harvesters is up 108 per cent.”
Mr Cairns said the Federal Government’s expansion of the instant asset finance write-off scheme was providing a further incentive for farming businesses to invest.
“Agriculture confidence is at an all-time high for a number of reasons – nationally, farm values are up, commodity prices are holding firm, interest rates are at record lows, seasonal conditions have been good, there is strong consumer and retail demand for fresh produce, and there’s government incentives like the instant asset write-off scheme,” Mr Cairns said.
“The trends we’ve been seeing signals a higher confidence across the farming sector, and that’s good for everyone – for the regional towns where the farms are located, for the whole supply chains that support our food and fibre, for the markets they sell to, and for all of us who enjoy fresh Australian produce.”
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Agricultural machinery financing, compared with the same time last year:
- NSW – up 109 per cent
- Western Australia – up 72 per cent
- Queensland – up 69 per cent
- Victoria – up 30 per cent
- Tractors – up 119 per cent (October was the largest month for tractors since September 2017)
- Harvesters – up 108 per cent
- Sprayers – up 59 per cent
- Headers – up 25 per cent
