RABOBANK has led the rural lenders in announcing it is passing on the Reserve Bank’s official cash interest rate cut of 0.25 percent into rural loans.

But it seems many major rural lenders were today caught out by a request to state their position on rural and agribusiness lending rates after the Reserve Bank last Tuesday reduced the official cash rate to 4.1pc.

Rabobank today announced a 0.25pc cut in variable base rate for rural loans effective 28 February, 2025.

Rabobank group executive for Country Banking Australia, Marcel van Doremaele. said the bank was pleased to be able to pass on the full 0.25pc rate reduction to its Australian rural lending clients, following the Reserve Bank of Australia’s decision to cut the official cash rate.

“We are pleased to be in a position to pass on the full official cash rate reduction to our rural lending clients at this time.

“It will be a welcome reduction in costs, particularly when primary producers are still facing a relatively high-cost environment in terms of inputs, such as fertilisers, farm chemicals, fuel and freight,” he said.

Mr van Doremaele said the bank had also undertaken a detailed review of its deposits business and was unable, in the current circumstances, to pass on the full 0.25pc interest rate reduction on a number of its deposit products.

“While our variable rate and shorter-tenure term deposit rates are reducing, some of our longer-tenure term deposits are in fact increasing,” he said.

The deposit rate changes will take effect on 24 February, 2025, or 28 February, 2025, Rabobank said.

Suncorp is reviewing its agribusiness rates

A Suncorp Bank spokesperson said Suncorp Bank is continuing to review agribusiness loan rates following last week’s interest rate decision.

“If customers do have questions, they are encouraged to reach out to their Relationship Manager or call 13 11 75.”

The Commonwealth Bank, ANZ, NAB and Westpac have all reportedly expressed intentions to cut variable rates for home loan borrowers and were all contacted for comment on whether their agribusiness lending rates would change after the Reserve Bank’s decision.

NSW Farmers urges banks to pass rates cuts onto farmers

NSW Farmers president Xavier Martin last week welcomed the Reserve Bank’s decision on Tuesday and urged all banks to pass the benefits of any rate cuts on to farm businesses as soon as possible.

He said further interest rate cuts would be necessary to relieve the pressure on the agricultural sector.

“Aussie farmers must see relief from these rate cuts across their debts, so they can keep on farming for decades to come.

“Young farmers also need to be given a chance to get their foot in the door, so they can build the farms of the future,” he said.

“The sky-high costs of key farm inputs like fuel and fertiliser are still increasing, and many farmers carry significant debts so they continue to grow the food and fibre for the planet,” Mr Martin said.

“It’s our hope this decision will offer some small relief to the huge pressures many farm businesses are facing, so they can continue to get on with the critical job of ensuring food security for not just Australia, but the world.

“We all need a farmer three times a day, every day, and we simply cannot let inflationary settings push any more farmers out of the game.”