Money is literally flying out the Commonwealth Bank's doors as Australian farmers rush to grab low-interest finance to buy agricultural machinery.
CommBank's executive general manager for regional and agribusiness Grant Cairns said NSW had led the growth with lending up 109 per cent during July to October compared with the same period last financial year.
"For many of Australia's farmers, this year has been a rebound from drought with favourable growing conditions, a successful winter crop in many regions and strong optimism about yields and quality of harvest," Mr Cairns said.
"Over the past few months we've seen financing in the sector increase dramatically, largely driven by farmers purchasing agricultural machinery for this year's crop season.
"We've seen asset finance for ag machinery, particularly tractors and harvesters, increase significantly."
The thirst for borrowings to buy ag machinery has also been strong in most of the other states with WA up 72pc, Queensland up 69pc and Victoria up 30pc.
"Across the country, new asset financing for tractors is up 119pc - the highest volumes with seen in the past three years and financing for harvesters is up 108pc."
October posted the highest month for tractors since September 2017.
Mr Cairns said the Federal Government's expansion of the instant asset finance write-off scheme was providing further incentive for farming businesses looking to take advantage of the positive outlook and expand for the future.
"Agriculture confidence is at an all-time high for a number of reasons - nationally, farm values are up, commodity prices are holding firm, interest rates are at record lows, seasonal conditions have been good, there is strong consumer and retail demand for fresh produce and there's Government incentives like the instant asset write off scheme.
"The trends we've been seeing signals a higher confidence across the farming sector, and that's good for everyone - for the regional towns where the farms are located, for the whole supply chains that support our food and fibre, for the markets they sell to, and for all of us who enjoy fresh Australian produce.
Simon Codemo from NSW agri equipment supplier, Codemo Machinery Services (based in Griffith) said a range of factors had boosted farmers' confidence and appetite for investment.
"We've seen a really big change in NSW over the past 12 months - obviously the weather and improved seasonal conditions is a big part of this.
"This weather, combined with low rates, stable commodity prices and the instant asset write off scheme has boosted farmer confidence," Mr Codemo said.
"I've definitely seen a boom in sales because of this confidence. We've seen demand for both new and used equipment increase across the board.
"For the first time in many years our customers are harvesting above average yields.
"Many of our customers are in the process of harvesting their crops right now and yields are looking really good."
The story Farmers rush big bank for loans to buy ag machinery first appeared on Farm Online.