The Reserve Bank of Australia (RBA) cut interest rates by 25 basis points on Tuesday, and the National Farmers Federation (NFF) urges banks to pass them on to the agricultural sector.
The period following a rate cut announcement is often met with much suspense as Australian’s attempt to speculate whether their banks with follow through with the cuts or not.
Furthermore, it is well documented and often controversial when banks, particularly the big four, fail to pass on the entire rate cut to customers.
While Jock Laure, president, NFF welcomes the cuts, he is hopeful that the banks dig deep and pass them on in their entirety.
Speaking to the Daily Advertiser he explains that “while there is a very positive future outlook for farmers and for agriculture - particularly in light of the government’s focus on the Asian century - in order to capitalise on the future opportunity, we must ensure farmers are in a stable financial position in the here and now.”
The NFF has an Agribusiness Loan Monitor that is able to track the movements of agribusiness loans facilitated by the banks.
It is of great use during these times, as it shows those banks that have decided to embrace the interest rate cuts and those that have not.
The company offers specialised cattle leasing services for landowners, lessee/sharefarmers and employees who are looking to lease dairy cattle, and it aims to help them build their herd without increasing their mortgage.
The cattle leasing company offers five year herd leases with realistic payment plans.
Typically the company requires that the lessee:
- Make a payment every 60 months
- Grow replacement heifers (20% per year)
- Allow for the cows to be tagged with NLIS tags
- Allow the company to audit the cows on an annual basis
Perhaps most importantly, the cattle leasing company is adamant that people consider it to be a specialist dairy leasing company rather than a bank.
If you are tired of the stress and suspense surrounding interest rate cuts and are after a company that specialises in your industry, opt for CowBank.