Banks allow FMD offset to lending
❝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.”