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Agri machinery financing rose 25 per cent in the first four months of the financial year 2022, reflecting strong confidence, according to CBA.
Continued confidence across Australia’s agriculture industry has seen strong business investment through this year’s harvest season, according to Commonwealth Bank of Australia’s regional and agribusiness division.
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According to the major bank, financing for agricultural machinery has already risen 25 per cent this financial year (July to October) compared to the same time last year.
Wine-making equipment has proven particularly popular – up 152 per cent – while loans for headers were up 101 per cent, ag bins (agricultural bins) were up 64 per cent and all-terrain vehicles up 46 per cent.
The Northern Territory has particularly boomed in its investment of agri machinery, up 138 per cent since 2020, followed by Victoria up 60 per cent and Queensland up 49 per cent.
Speaking of the figures, CBA’s executive general manager of regional and agribusiness, Paul Fowler, commented: “Despite the widespread disruptions that we’ve seen over the past year, it’s positive to see the agriculture industry expanding and adapting to take a leading role in the nation’s economy.
“Not only are regional communities benefiting from the ongoing confidence but the whole country is seeing the economic value while experiencing the high quality food and fibre our farmers produce.”
He added that seasonal conditions, fast-rising rural property values, and record low interest rates had fuelled ongoing positivity about the future outlook, as had government incentives such as the instant asset write-off and SME recovery loan schemes.
“We’re seeing agribusinesses take the opportunities that have come from the past year and examine their operations, implement new ideas and innovative solutions to support their business goals,” Mr Fowler said.
“Although there have been challenges getting new assets into the country due to global shipping delays, businesses have remained optimistic and we expect the high confidence to continue into 2022 and beyond.”
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[Related: Major bank to cease ‘one-off’ asset finance deals]
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