Grain Producers SA (GPSA) has written to the nation’s major agribusiness finance providers urging them to deliver tailored support for South Australian grain producers facing financial pressure because of ongoing drought conditions.
GPSA chief executive officer Brad Perry said the organisation urged the banks to show flexibility and compassion in their dealings with grain growers experiencing reduced or failed crops, resulting in severe income disruptions.
“In the current environment, South Australian grain producers are doing it tough, with many facing significant cashflow challenges that will extend well into the next 12 to 24 months,” he said.
“In this situation, it is vital that financial institutions recognise the need for flexibility and tailored support to help growers continue their operations.”
In the letter to the banks, GPSA also highlighted that formal drought declarations have been phased out so financial institutions should not be waiting for this recognition to trigger assistance.
“South Australia and Victoria are currently experiencing severe drought conditions, yet concerns have been raised that without formal drought declarations in place, banks may not provide the support grain producers desperately need,” Mr Perry said.
Mr Perry also raised concerns about the decreasing availability of dedicated regional bank managers who understood the challenges of the grain sector, which had become a critical issue for growers not only in South Australia but nationally.
“As banks increasingly centralise their services and move towards online systems, it has become increasingly difficult for grain producers to access personalised financial advice,” he said.
“Having dedicated regional managers who understand the unique challenges faced by agricultural businesses is crucial, especially during drought. Access to face-to-face advice from someone with local knowledge can make all the difference in navigating challenging times.
“Engaging in constructive dialogue with banks is essential to ensuring that growers are treated with empathy and provided with the support they need. It should be noted that some banks already have dedicated drought support available and the South Australian grain sector appreciates this proactive approach.”
