ANZ Banking Group is urging dairy customers to get in touch their bank manager to take advantage of an assistance package activated in response to the dramatic milk payment cuts in southern Australia.
The package includes suspending loan repayments, including credit cards, for up to three months, possibly including interest capitalisation.
Early access to term deposit funds will be permitted without customers incurring any break fees.
ANZ will also waive fees associated with restructuring any business loans considered necessary due to the milk price cuts initiated by Murray Goulburn and Fonterra in response to a continuing slide in global dairy markets.
MG’s downgraded profit expectations last month started an industry domino-effect cutting farmgate milk solids prices to $4.75 in southern Australia.
MG is also foreshadowing a debt repayment levy will be deducted from future milk cheques for the next three years.
Payments to milk producers across the wider industry are expected to reflect the price cuts when new contracts commence for 2016-17.
The bank says it will work with its farmer customers to develop the best possible solutions to meet their needs, including offering access to hardship support services.
It will also allow temporary adjustments to lending limits, including credit cards to assist with unexpected costs and reduced income.
ANZ’s regional business banking general manager, Christine Linden, acknowledged falling farmgate dairy prices were putting significant stress on some producers despite the strong macro fundamentals for the industry in the medium and long term.
“We know many of our customers are doing it tough at the moment,” Ms Linden said.
“We’re committed to working with each customer to respond to the current challenges so they can take advantage of the long-term benefits of the dairy industry.
“Every farm has a different cost structure and unique characteristics therefore customers affected across Australia are encouraged to visit their local branch or contact their agribusiness manager to discuss the impact on their business or personal circumstances.”
Customers could also telephone ANZ’s dedicated financial hardship team on 1800 351 548.
Deputy Prime Minister Barnaby Joyce has also flagged the government’s hopes of offering concessional exceptional circumstances loans to dairy farmers caught by the price slump and drought, but said it would be difficult to act until after July’s federal election.
