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 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 Queensland Bar Association
The Australian Institute of Agricultural Science and Technology