Farm Finance Strategy

QUEENSLAND FARM FINANCE STRATEGY

The signatory farm organisations and banks in the attached document acknowledge that the financial success of Queensland agriculture depends on widespread knowledge and use of best financial practices by both lenders and borrowers. This updated Queensland Farm Finance Strategy (QFFS) provides a vital ingredient to achieve this.

This document is the product of the latest consultations between the banking and finance sector, government service providers and rural industry organisations in Queensland. It represents the ongoing evolution of industry-led strategies to improve debt management services in the state. The initial Queensland Farm Finance Strategy (QFFS) was developed by the Queensland Farmers’ Federation (QFF) and the Australian Bankers’ Association (ABA) in 1996 and this version now provides the most current advice and practices from February 2008.

PURPOSE

The purpose of this Strategy is for financial institutions and other providers of credit to farmers, farmers and their respective financial advisers and financial counsellors and representative organisations to work together to:

• promote objective assessment of financial viability of farming operations;

• resolve financial problems as they arise; and

• promote a mechanism to achieve a timely and dignified conclusion to matters where a financial support arrangement is brought to an end, and so avoid the potential for conflict between the farmer and the financier(s).


To achieve the Purpose of this Strategy, the parties will:

• encourage all farmers and farm financers to adopt the philosophy of this Strategy;

• encourage financial planning and analysis as integral parts of ongoing farm management by farmers, in order to identify opportunities and strategies for economically and environmentally sustainable farming;

• encourage farmers to access professional advice as a part of the lending process;

• encourage early recognition of farmers’ financial problems (including debt serviceability or farm viability) and identify opportunities and strategies for addressing financial shortcomings;

• provide a framework in which farmers and financiers can resolve financial problems; and

• participate in processes when a farmer has to end farming operations due to financial difficulties, in a professional and sensitive manner.


This Strategy recognises that both the farmers and the financiers are in business and that their relationship is based and defined by contracts which govern the provision of credit and repayments. This Strategy also recognises and identifies the following as key elements of a sound relationship between farmers and financiers:

• Access to and the use of professional advisers and the adoption of sound financial management practices by the farmer;

• The early recognition of financial problems; and

• A willingness by the parties to negotiate to resolve financial problems in a fair and reasonable manner including the availability of mediation prior to commencing enforcement action with respect to a farm mortgage by the financier.

For a copy of this strategy click here or contact QFF Employment Initiative Officer Peter Perkins on 07 3837 4747.

MEDIATION

The Strategy recognises that financial and other institutions can lead to enforcement action. The Strategy includes important Farm Debt Mediation protocols and identifies how a mediator may be obtained. QFF advises that farmers need such assistance be familiar with the mediation services of such organisations as

The Law Society of Queensland

The Queensland Bar Association

The Australian Institute of Agricultural Science and Technology

The Queensland Department of Justice

National Drought and the Law Online Forum

Have your legal questions answered Free!

As one of its drought support initiatives, the Federal Department of Families, Housing, Community Services and Indigenous Affairs has funded the Rural Law Online website to provide a free national online legal information service for rural communities, farmers and rural small businesses.

The National Drought Law Forum is supported by 20 lawyers from around Australia who are ready to provide a response to any legal query.

Organisations working with people affected by drought are also encouraged to utilise the forum by posting a question, sharing experiences or promoting their services.

The forum is great opportunity for individuals or organisations working with people in rural Australia to ask a lawyer a legal question and have the response viewed by many others who could benefit from the information.

Anyone with a legal question or comment can post it to the Forum anonymously and receive a response from an independent legal expert.

Visit the Drought Law Forum and post a comment or question at Rural Law Online

ADDITIONAL INFORMATION

To support this Strategy QFF encourages farmers and their advisors to regularly seek the latest information relevant to sustaining a financed farm business. For instance the Queensland Rural Adjustment Authority (QRAA) provides important advice on government programs and commissions the important biannual Rural Debt in Queensland report, the latest survey results are available click here.

The ABA likewise provides useful information via its web site click here.

And there are other service providers who can provide assistance with financial and business banking issues, such as; 

Financial Councelling Queensland Network
Australian Industry Group

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