Banks al­low FMD off­set to lend­ing

Central and North Rural Weekly - - MY SMOKO BREAK -

❝This pro­tracted drought is chal­leng­ing for even the most re­silient. — QFF CEO Travis Tobin

THE Queens­land Farm­ers’ Fed­er­a­tion (QFF) has wel­comed West­pac and ANZ an­nounce­ments that they too will now al­low farm­ers to off­set money held in Farm Man­age­ment De­posits (FMDs) against their agri­cul­tural lend­ing.

QFF CEO Travis Tobin said the ca­pit­u­la­tion from West­pac and ANZ meant that farm­ers did not need to con­sider switch­ing banks to ac­cess the im­prove­ment to this use­ful risk man­age­ment tool .

“The off­sets pro­vi­sion was an im­por­tant part of the pos­i­tive and proac­tive FMD re­forms that passed Fed­eral Par­lia­ment in early 2016 but un­til re­cently, Ru­ral Bank was the only fi­nan­cial in­sti­tu­tion to of­fer farm­ers the op­por­tu­nity to use their FMDs to off­set their bor­row­ings,” he said.

“NAB, CBA and Rabobank re­cently fol­lowed Ru­ral Bank’s lead after the Royal Com­mis­sion hear­ings and con­stant pres­sure from Fed­eral Agri­cul­ture Min­is­ter David Lit­tleproud and we com­mend his per­sis­tence on this is­sue.

“Farm­ers and coun­try peo­ple are tough, but this pro­tracted drought is chal­leng­ing for even the most re­silient. QFF thanks the banks for back­ing ru­ral and re­gional Queens­land by giv­ing farm­ers an­other tool to man­age risk.”

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