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Finance for large grain and general haulage trailers surged 59% in the bank’s last financial year followed by headers, which jumped 18%, as equipment finance for regional and agribusiness customers continues to grow.
The figures were part of a record year in regional and agribusiness equipment finance lending volume at NAB, with FY22 up 3% on the previous year and +47% 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. Bumper crops paired with the federal government’s instant asset write-off scheme have helped fuel investment in vehicles and equipment,” Mr Horne said.
“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.”
By state, Western Australia showed the biggest increase in equipment financing, with dollar volumes rising 28% in FY22 compared to FY21, underpinned by a 96% increase in spending on agricultural implements, and built off a run of strong seasons.
In NSW, finance for trailers and headers both increased by 24% respectively, while in Queensland, finance for trailers increased 72% and headers, 24%. In Victoria, finance for headers and trailers both increased 11%.
In the Northern Territory, there was a 302% increase in finance for tractors and 247% increase for headers, though coming off a low base.
In the lead up to the end of this financial year, Mr Horne said customers should discuss their equipment financing options with their local NAB banker, broker, or financial adviser.
“To support Australian businesses looking to decarbonise and build climate resilience, NAB also offers finance for green equipment on a wide range of vehicles and energy efficient equipment,” Mr Horne said.
ENDS
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