Fast rising rural property values, record low interest rates and favourable weather conditions have Australia’s booming agriculture sector sitting at a seven year high, according to new data from the Commonwealth Bank.
The data showed the record funding was being driven by farmers investing in transport equipment, sowing and cropping equipment, and tractors and harvesters.
March 2021 was the third largest month for purchases of agriculture machinery since 2014, with tractor purchases up 78 per cent and harvesters up 88 per cent – compared to the same time last year.
“As farmers prepare for what is expected to be a significant winter crop production, upgrading old machinery has become a priority, with customers seeking to maximise productivity and take advantage of current government investment incentives,” Mr Cairns said.
The record sales come after coronavirus forced logistical challenges and supply chain disruptions for sales, repairs and upgrades of machinery.
Commonwealth Bank executive general manager of regional and agribusiness Grant Cairns said there was high confidence throughout the agriculture sector after good weather conditions, low interest rates, and high commodity prices amongst both cropping and pastoral operations.
“The recent La Nina weather has delivered rain to most pastoral regions, which has really helped grazing conditions across the country,” he said.
“While it has taken some time, Australia’s herd rebuild is firmly underway, and that’s helping prices due to high demand and ongoing competition between farmers and processors.
“Border closures internationally also mean more people are taking the opportunity to explore their own backyard and that includes Australia’s many wonderful restaurants and eateries ensuring a consistent, undisrupted market for beef producers.”