The Reserve Bank may have dropped the official cash rate to record-low levels to try and prevent Australia sliding into recession, but rural lenders are still under fire for passing only minor cuts on to farm borrowers in recent months.
Rural MPs and farm lobby groups are continuing to report very little downward movement on agri-lending rates, particularly in the areas of overdrafts and stock and cropping loans.
Following yesterday's announcement to drop 1pc off the official cash rate to 4.25pc, the Opposition's spokesman for agriculture, John Cobb, said farmers and small businesses have gained had as little as .20pc from the 3pc reduction in rates over the past four months.
NSW Farmers Association president, Jock Laurie, said the Federal Government should urge the Australian Banking Association to publicly release information about any reductions the banks were passing on to their commercial variable rate loans.
He said many farmers do not appear to be seeing corresponding reductions in their loans, nor do they have access to information about what the banks are doing.
Last week Minister for Agriculture, Tony Burke reiterated the Government's expectations that cash rates be passed on in full to not just residential customers, but Australian farmers too.
"We do not resile one bit from the expectation we have put to the banks," Mr Burke said.
"Now, the integrity of the financial system puts some legitimate barriers in terms of how quickly that has happened, but the Government's expectations have not changed and we do expect those to be passed on in full."
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