Commonwealth Bank addresses major agri challenges for regional Australia
24 August 2005
The challenges of farm consolidation and succession planning were some of the key issues identified by farmers at this year’s Commonwealth Bank Ag Quip, Australia’s premier agricultural field day held in north-western NSW this week.
Jon Sutton, General Manager for the Commonwealth Bank’s agribusiness, said: "There is a significant structural change occurring in the farming sector, and one of these changes is the reduction in the number of farm enterprises in Australia, which has fallen by ten per cent to 130,000 in the last ten years.
"The need for thorough financial and succession planning in this volatile and increasingly consolidated market is absolutely crucial."
In answer to this, Commonwealth Bank has developed AgriAdvantage, a comprehensive financial package launched at Ag Quip 2005 today.
Sutton says: "AgriAdvantage provides farmers with the tools to manage both their business and personal needs and includes access to wealth creation and financial planning specialists who can map farmers’ long term financial goals."
AgriAdvantage offers transactional, working capital, term financing, investment, wealth management, and risk management options to farmers, all via a dedicated Agri banker. It also allows farmers to plan for the challenges of intergenerational transfer of farming assets through a suite of products designed for succession planning.
In addition, the AgriAdvantage package will give farmers access to a free consultation with the Bank’s Global Markets Specialists who build customised strategies to protect farmers against market volatilities with commodity hedging, interest rate risk management, investments1 and foreign exchange.
Sutton added: "The Commonwealth Bank is determined to stay at the forefront of financing risk management for Agribuisness in Australia and will continue to develop innovative products that will help the rural sector."
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Phone: (02) 9378 2663
Notes to editors on AgriAdvantage:
- Other unique features of the suite include preferential pricing, interest rate discounts, fee waivers on core debt products, and free services such as market leading research on commodities and equities. AgriAdvantage also includes a premium all-in-one lending account.
- The Agribusiness Line of Credit (ALOC) is a flexible revolving line of credit designed and priced for farmers’ core debt needs. The facility offers access to funds up to a pre-approved limit through branches, EFTPOS, cheque and Netbank. With Agribusiness Line of Credit, no fixed repayments are necessary and payments of interest can be made on a monthly, quarterly, semi annual or annual basis, to suit a farmer’s cash flow. An added benefit is that interest can be capitalised for up to two years and the facility is evergreen, with no set term.2
1 This information has been prepared for general information only and not having regard to particular person’s investment needs, objectives and financial situation. You should read the Personal Disclosure Statement before deciding whether to invest.
2 Applications for finance are subject to credit approval and usual terms and conditions. Annual reviews may apply. Fees and charges may apply.