Source: Commonwealth Bank of Australia
Favourable weather conditions across many parts of Australia has seen a 50 per cent increase in financing for agri machinery as farmers fast track expansion plans, according to Commonwealth Bank’s Regional and Agribusiness division.
Friday, 20 November 2020 – Commonwealth Bank’s Executive General Manager Regional and Agribusiness, Grant Cairns, said New South Wales had led the growth, with lending up more than 100 per cent in the state, compared to 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,” Mr 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.”