QFF Welcomes Offset Moves

The Queensland Farmers’ Federation (QFF) has welcomed announcements from Westpac and ANZ that they too will now allow farmers to offset money held in Farm Management Deposits (FMDs) against their agricultural lending.

sheep shorn in yard
QFF CEO Travis Tobin says the capitulation from Westpac and ANZ meant that farmers do not need to consider switching banks to access the improvement to this useful risk management tool.

He congratulated Minister for Agriculture David Littleproud for successfully encouraging all the banks to get on board.

“The offsets provision was an important part of the positive and proactive FMD reforms that passed Federal Parliament in early 2016 but until recently, Rural Bank was the only financial institution to offer farmers the opportunity to use their FMDs to offset their borrowings.”

NAB, CBA and Rabobank recently followed Rural Bank’s lead after the Royal Commission hearings and pressure from Federal Agriculture Minister, David Littleproud.

“We commend his persistence on this issue. With all the major agri-lenders now offering FMD offsets, whether to switch banks or not is one less decision farmers will need to make. With drought pressures mounting, this will be welcome for many.”

Mr Tobin says farmers and country people are tough, but the protracted drought is challenging for even the most resilient.

“QFF thanks the banks for backing rural and regional Queensland by giving farmers another tool to manage risk and plan for the future.”

Help is available to farmers and rural communities affected by drought, for details about assistance and support services or to lend a hand to those doing it tough see here: Support for drought affected farmers and rural communities