29 Nov 2009

Reserve Bank reports first fall in farm loans in 9 years

6:38 am on 29 November 2009

The Reserve Bank says there was a fall in agricultural loans in October, representing the first time in nearly nine years that bank lending to farmers has declined.

There had been an increase in lending every month since February 2001, adding up to a 270% rise in that time period.

That compares with growth of 112% in lending across the rest of the economy.

But farm loans fell to $45.7 billion last month, from $46 billion in September.

Lending on houses, however, has continued to climb, reaching a fresh high of $160.5 billion in October.

Consumer lending also increased.