Large grain trailers and headers top list of financed equipment
NAB has delivered a record year in regional and agribusiness equipment finance lending volume, with FY22 up 3% on the previous year and 47% on pre-pandemic levels.
The solid performance in the last financial year was driven by a 59% jump in finance for large grain and general haulage trailers and an 18% spike in headers, as equipment finance for regional and agribusiness customers continues to grow.
“Many farmers across the country have had an excellent run of seasons, with some areas in Australia experiencing record-breaking 2022-23 winter crops,” said Khan Horne (pictured above), NAB executive regional and agribusiness. “Bumper crops paired with the federal government’s instant asset write-off scheme have helped fuel investment in vehicles and equipment. 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 posted the biggest increase in equipment financing, with dollar volumes rising 28% in FY22 compared to previous financial year, underpinned by a 96% rise in spending on agricultural implements, and built off a run of strong seasons.
In NSW, finance for both trailers and headers grew by 24%, respectively, while in Queensland, finance for trailers spiked 72% and headers, 24%. In Victoria, finance for both headers and trailers climbed by 11%.
In the Northern Territory, finance for tractors rose by 302% while headers lifted by 247%, though coming off a low base.
In the lead up to the end of this financial year, Horne urged customers to 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,” Horne said.
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