Australian Government farm business lender, RIC (Regional Investment Corporation), today released the RIC Farm Loans Customer Insights Brief 2024, revealing surveyed RIC customers are concerned about sustained high interest rates and increasing farm production costs, yet remain positive about their farm business and the long-term future of the agriculture industry.
RIC Chief Executive Officer, John Howard said the annual survey of RIC customers is important to understand farmers' concerns and the impact of RIC concessional loans.
"Our RIC Farm Loans Customer Insights Brief 2024 reveals high interest rates remains the biggest concern for farmers. It is pleasing to see RIC low-cost loans help ease that pressure with 79 per cent of surveyed RIC customers using their loan to pay down debt," said Mr Howard.
"It's no surprise that the cost of operating a farm business and challenges posed by market and price volatility are top concerns.
"Farmers are using RIC loans to help ease their financial burden by implementing sustainable agriculture practices (62 per cent), expanding the farm business (58 per cent), and improving drought preparedness (58 per cent).
"Together, these contribute to a more positive outlook, with 89 per cent agreeing that their RIC loan has given them greater confidence in the future of their farm - that's up from 86 per cent since last year."
Mr Howard said RIC customers' benefit from financial breathing space to help manage through situations outside their control.
"Our low variable interest rate and interest only repayment terms for the first 5 years have been a lifeline for thousands of farming families in times of drought, natural disasters or other major financial disruptions - 74 per cent of customers surveyed agree their RIC loan has made their recovery easier than it otherwise would have been," Mr Howard said.
The research also revealed that RIC loans continue to be seen by customers as contributing to regional investment and resilience, with RIC-assisted farmers having a positive outlook for their farm business and the future of the Australian agriculture industry.
"Of the RIC customers surveyed, 89 per cent agreed their RIC loan has given them greater confidence the future of their farm or small business, confidence in the profitability of their farm (89 per cent), and that RIC contributes to resilience in Australia's regional communities (90 per cent)," Mr Howard said.
RIC Farm Loans Customer Insights Brief 2024 is based on independent research conducted by JWS Research in July 2024 with existing RIC loan customers from across Australia and from a range of agricultural industries.
Read the RIC Farm Loans Customer Insights Brief 2024.
