NATIONAL Australia Bank finance for large grain and general-haulage trailers surged 59 percent in 2021-22 from the previous year, while headers jumped 18pc.
NAB is one of Australia’s big four banks, and said its figures were part of a record year in regional and agribusiness equipment finance lending volume at NAB, with FY22 up 3pc on the previous year and up 47pc on pre-pandemic levels.
NAB executive regional and agribusiness Khan Horne said the data reflected solid ongoing growth among regional and agribusiness customers.
“Many farmers across the country have had an excellent run of seasons, with some areas in Australia experiencing record-breaking 2022-23 winter crops,” Mr Horne said.
“Bumper crops paired with the Federal Government’s instant asset write-off scheme have helped fuel investment in vehicles and equipment.
“While some asset classes are down, such as cars and tractors, we know this is due to supply-chain issues that continued throughout 2022.
“Customers’ appetite for new and used equipment is strong; demand remains high, and we expect this to continue at least to June 30 when federal tax incentives are currently scheduled to cease.”
West leads growth
By state, Western Australia showed the biggest increase in equipment financing, with dollar volumes rising 28pc in FY22 compared to FY21, underpinned by a 96pc increase in spending on agricultural implements, and built off a run of strong seasons.
In New South Wales, finance for trailers and headers both increased by 24pc respectively, while in Queensland, finance for trailers increased 72pc and headers 24pc.
In Victoria, finance for headers and trailers both increased 11pc.
In the Northern Territory, there was a 302pc increase in finance for tractors and 247pc increase for headers, though coming off a low base.
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