Perfect storm of high costs and dry weather threatens farm profits

One of the nation's biggest farm lenders is watching the profit margins of its clients being squeezed by soaring fuel, freight and fertiliser costs. Rural Bank (part of the Bendigo and Adelaide Bank group) is keeping close tabs on its farm loan portfolio saying "a question mark hangs over whether the benefit of recent rains will offset the impact of ongoing international instability". The other looming problem for farmers is the impact of continued bank interest rate rises. The International Monetary Fund yesterday warned Australia was projected to have one of the highest inflation rates globally as the Middle East conflict threatens to trigger a global recession. Australia was already looking at higher inflation before the Iran war caused fuel prices to surge . Bendigo Bank agribusiness senior manager (industry insights) Eliza Redfern said cropping farmers may be able to get their winter crops off to a strong start. "However, the benefits of that welcome rain will potentially be ...