ANZ to stop forced farm sales in drought-hit regions of Queensland and New South Wales

Updated 45 minutes agoThu 11 Dec 2014, 7:10pm

 

The ANZ bank will introduce a 12-month moratorium on forced farm sales in areas of crippling drought throughout Queensland and New South Wales.

"While taking possession of a farm is always the last option after all other avenues have been exhausted, we feel it's prudent to take a pause on any new action given the severe impact the drought is having in Queensland and northern New South Wales," said ANZ Australia CEO Phil Chronican.
The bank hasn't been immune from the barrage of pressure mounting on the major lenders to offer greater compassion to producers in the hardest hit areas.
Federal Agriculture Minister Barnaby Joyce has welcomed the ANZ's decision and says the Australian public want to know that farmers are being treated fairly.
"As we have stated, we much prefer the banks to manage their own situation rather than the government having to intervene.
"And these are precisely the actions that show how a bank has the capacity to assist in these difficult times," said Mr Joyce.
A meeting of graziers, agricultural industry leaders and politicians in the western Queensland town of Winton last week called for an immediate halt to farm repossessions.
The 'Last Stand At Winton' forum was convened by the Queensland MP Robbie Katter who told the Queensland Country Hour the broader community should be concerned about the plight of Australia's primary producers.
"The Australian public reacted to cattle dying in abattoirs in Indonesia, so they might react to the pain they see people experiencing out here," he said.
"I hope they do. There's a lot of pain, and there's more to come. It's going to get worse.
"It will be too late in a few years time to lament the loss of our rural industry, and all our farming families.
"This is the time to precipitate change."
Recent data released by Mr Joyce's office shows 43 producers in Queensland's gulf country have missed repayments for more than 90 days this year.
That's almost doubled since 2012 when 23 farmers in the region were said to be in financial stress.
ABARES surveys indicate that average farm business debt increased by around four per cent in south-west Queensland and around 12 per cent in north west New South Wales in 2013-14.
Nationally, three per cent of the $66 billion in loans to the agriculture, forestry and fisheries sectors are in default.