Farmers in Australia have debt worth more than $60 billion, this is considered to be largely financed through bank debt to fund on-farm investments and hard to maintain working capital.
Expectedly the poor farmers have no other option to recover the debt and were forced to sell the property and other assets as to grow and maintain in the agriculture sector. It is common knowledge that the farm businesses are capital concentrated, where it is asset rich and do not have any other option as to earn with respect to sources of finance, it’s commanding that bank often gives advice to farmers on financial assistance during their hard times.
It’s expected for other board of banks to support farmers in the time of crisis as it will support the life of farmers and those of others who also help them to.
ANZ has now implemented eight principles for lending to family farming customers in financial distress. They have committed to reasonable and ethical principles and understand that farming is subject to seasonal conditions, engaging with farmers in a ‘fair and external events that cannot always be anticipated. Furthermore, they are also offering early mediation and not charging default interest, ANZ now includes agriculture bankers in their lending services team and ensures to take action.