Why did it take so long…(not!)

With many parts of Australia looking like the photo above in 2017, 2018, and 2019, and with farmers cash reserves correspondingly exhausted, our theory was that it would take 2 years of average to above average seasons for farmers to financially recover, and to start talking about property purchase.

It took only two weeks for the phone to start ringing after the rain started early this year.

The factors we believe that have contributed to the rapid turnaround in sentiment are:

  • Substantial improvement in seasonal conditions in many areas.
  • Agricultures’ eternal and essential need to remain optimistic.
  • Current low interest rates equate to low borrowing costs.
  • The ‘once in a blue moon’ opportunity to buy the neighbours property.
  • An underlying long term strategy by many farmers to expand regardless of seasonal conditions and commodity prices.


What a difference a bit of rain makes! – early 2020


Despite the hardship of the last 4 years, many of our new customers possess strong balance sheets; current good seasonal conditions underpinned by germinated crops and/or retained breeding stock numbers; and the resulting ability to generate loan servicing cashflows in the short to medium term.

On a positive final note, banks have also been supporting property purchases where the key attributes of security and cashflow are underpinned by current good seasonal conditions.

What a difference a bit of rain makes – early 2020

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