DESPITE the turmoil on global financial markets, the rural lending market remains strong, according to Rabobank.

Rabobank General Manager Peter Knoblanche said Australian farmers and agribusinesses continue to capitalise on strong global commodity prices and the improved production outlook for the sector. 

“Despite the concerns emanating from the current uncertainty on global financialmarkets, we are not witnessing any noticeable drop off at all in farmer appetite forfinance and our lending volumes are strong and growing,” Mr Knoblanche said.

“This is a good indication that – at least for now – farmers are confident about thefundamental strength and positive outlook for the sector.” Mr Knoblanche said that while the current unrest on world financial markets had implications for the entire global economy, the Australian agricultural sector had a number of positive factors in its favour and a very optimistic long-term outlook.
“Australian agriculture is benefiting from historically high commodity prices and, despite the impact of ongoing dry conditions in some parts of the country, is on track for an improved season particularly in the cropping sector,” he said.

“The recent fall in the Australian dollar exchange rate is also helping agricultural exporters, while the reduction in interest rates had also been welcome news for farmers.”