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Confidence returning to the farm sector
9 Oct 2008
Farmers are borrowing more as confidence returns to the sector on the back of strong global commodity prices and improved production outlook for the current season, "We are not witnessing any noticeable drop-off in farmers'' appetite for finance, and our lending volumes are strong and growing," Rabobank Rural Australia general manager Peter Knoblanche said. "This is a good indication that, at least for now, farmers are confident about the fundamental strength and positive outlook for the sector." Confidence is particularly strong for cropping land and grazing land. "The interest in acquisition of property is pretty similar to what it was last year," he said. "The larger and better properties seem to have more interest in them." NAB agribusiness head Khan Horne said: "We are very pleased with the way the industry is going", highlighting that there was strong demand for food and that there were "very low stocks of wheat, rice and barley. It''s a prime time for Australian growers to make money". Figures from the Australian Bureau of Agricultural and Resource Economics show Australia''s commodity export earnings are expected to increase to a record $214 billion in the 2008-09 financial year. Farm export earnings are tipped to rise 9 per cent to $30 billion, buoyed by demand for wheat, barley, canola, pulses, sorghum, sugar and wine, the report says.
The Australian, 09/10/2008
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