NFF president Jock Laurie said the reduction in interest rates – the first since April, 2009 – was welcome news for the agricultural sector.
NFF president Jock Laurie said the reduction in interest rates – the first since April, 2009 – was welcome news for the agricultural sector.

Rate cut looks good for farmers

THE National Farmers' Federation has welcomed this week's cut of 25 basis points to the national cash rate by the Reserve Bank of Australia.

NFF president Jock Laurie said the reduction in interest rates - the first since April, 2009 - was welcome news for the agricultural sector.

"What we're currently seeing is a very positive outlook for farmers and for agriculture," Mr Laurie said.

"While there are still challenging seasonal conditions facing some parts of the sector, in many ways the current conditions for most are very positive," he said.

"Australian farmers are heavily exposed to interest rate movements, more so than many other sectors due to our large levels of farm debt after a decade of drought and, more recently, natural disasters. (This) cut to 4.5 % means farmers will be better placed to meet their financial obligations."