The Commonwealth Bank said there is strong growth in lending for new energy-efficient equipment on farms.
“If we compare January to June this year, the value of new loans to farmers for energy -efficient equipment has increased by more than 400 per cent and we expect this trend to continue,” said Margot Faraci, Commonwealth Bank General Manager of Regional and Agribusiness Banking for New South Wales.
The 400 per cent jump in new loans for farmers is based on the value of money borrowed and Ms Faraci said the finance can cover items valued from $10,000-$5million.
Commonwealth Bank has partnered with the Clean Energy Finance Corporation to provide discounted financing to help businesses fund energy-efficient vehicles, equipment and projects. Customers receive a 0.70 per cent discount when they choose to finance qualifying equipment such as fuel efficient vehicles, energy efficient lighting and fittings, farm machinery, commercial lighting and rooftop solar panels.
“Energy prices are one of the key cost concerns weighing on the minds of Australian farmers and regional business operators,” said Ms Faraci.
Loans and the finance rate will be handled on an individual circumstance basis and farmers looking to take advantage of the discounted rate should talk to a Commonwealth Bank specialist first.
In the case of a tractor, for example, one of the approval criteria is that the new vehicle must be a minimum of 20 per cent more energy efficient than the tractor it is replacing.
The trend towards energy-efficient farming has been released as the Commonwealth Bank prepares for AgQuip, one of Australia’s premier primary industry field days to be held in Gunnedah next week on 22 and 24 August.
“AgQuip is a key event in the industry calendar showcasing new technologies and innovation. Much of our on-site activity will focus on making sure more farmers are aware of the specialised finance options available so they can take advantage of energy efficient equipment in their operations,” said Ms Faraci.