Thursday, 25 October, 2007: Representatives from the Australian Bankers’ Association (ABA) met with the (VFF) yesterday to discuss the ongoing drought and its impact on agricultural finance.

All representatives at the meeting agreed on the importance of farmers keeping an open dialogue with their banks throughout this difficult time.
 
“While it is understandable that people experiencing difficult times are often reluctant to discuss their financial concerns, we need to reassure them that banks want to help farmers to manage their way through this drought,” said David Bell, Chief Executive of the ABA.

“Farmers must keep an open dialogue with their banker to explore all the options. Keeping any difficulties a secret will not change the reality, and dealing with them early is the best way to overcome any issues later down the track,” said Simon Ramsay, president of the VFF.

The banks have programs in place to assist those who are suffering financial difficulties. As a result, foreclosures within the banking sector remain at historic lows.

Yesterday’s meeting recognised the hardships being faced across the farm and rural community, and that there are cases where the drought has resulted in farmers being pushed to the extent of their viability.

“Rural property and water rights prices have held up reasonably well in Victoria which has assisted farmers to retain equity in their businesses and provided confidence to the financial sector. While the current drought is causing significant hardship, and there will some farmers who may decide to leave the industry, the banking industry remains positive about the future of Victoria’s agriculture sector,” Mr Bell said.

“Commodity prices in most industries are at strong levels despite the high Australian dollar. This drought will end providing a springboard for renewed confidence in farming. Maintaining the production capacity and confidence in the farm sector over the next few months will be a major challenge,” Mr Ramsay said.

“Farmers were pleased with the clear indication given by the banks yesterday of their desire to support the agricultural sector into the future,” Mr Ramsay concluded. 

Media Contact:

Brendan Rowswell, VFF Communications Director, 0417 165 784
Heather Wellard, ABA PR, 02 8298 0411 or 0409 830 439



ENDS