Tuesday 1 May, 2012
RBA cuts rates: Will banks pass the benefits on to farmers?
Today's move by the Reserve Bank of Australia (RBA) to cut interest rates by 50 basis points is a positive move for farmers - if banks pass on the full cuts to their agri-customers.
Despite favourable seasonal conditions across most of Australia (including the news this week that for the first time in a decade, Australia is officially drought-free), weakening commodity prices across the dairy, wool, cotton, lamb, fruit and sugar sectors, combined with a strong Australian dollar, means challenging times for our farmers.
The RBA decision is welcome news, helping to ease some of the pressure on the agricultural sector. But the most crucial component of today's announcement is what follows it: will the banks pass the rate cuts on to farmers and agribusinesses?
Time, and the NFF Agribusiness Loan Monitor for May, will tell. The Monitor is due out on Monday 14 May. For more information in the meantime, read our release.
Interest rate subsidies dry up
From interest rate cuts to interest rate subsidy cuts: the NFF has criticised the Government's snap decision to cut interest rate subsidies for farmers facing exceptional drought situations - without an alternative policy in place.
Budget 2012: Ag funding critical
The countdown is on to the Federal Budget next week, and the NFF is stepping up its calls for continued Government investment in agriculture.
We know that tough budget decisions will need to be made by the Government in order to meet their self-imposed budget surplus deadline - but importantly, this must not mean neglecting key opportunities to invest in growth sectors of the Australian economy, like agriculture.
Now is not the time for Government to be cutting back its spending on agriculture: but rather investing for the long haul. This year, the NFF is focused on ensuring that funds already committed, and promised made, by Government are upheld - particularly re biosecurity, drought reform, coal seam gas, infrastructure, research and development, the National Food Plan, carbon, the environment, education and training and labour shortages.
For more, view our pre-Budget submission, and stay tuned for NFF updates as the Budget deadline approaches.
Coming up at NFF.
> Blueprint forum: Adelaide
> FarmDay 2012
The NFF AGvocate
In this issue
Coming up at NFF.
|© National Farmers' Federation Ltd 2012 All rights reserved | Disclaimer|
|To unsubscribe from the AGvocate, please click here
This email was sent by the National Farmers’ Federation.