Farmer leaders take aim at ANZ, CBA, NAB and Westpac over feared agribusiness cutbacks

Farmers fear Australia’s big banks are stripping agribusiness consultants from the rural frontline, amid concerns major lenders are returning to bad banking habits.

Farmers fear Australia’s big banks are stripping agribusiness consultants from the rural frontline, amid concerns major lenders are returning to bad banking habits.

Five years since the damning findings of the Banking Royal Commission, southwest Victoria’s green drought has highlighted the widening disconnection between banks’ central offices and remaining regional bank branches.

Farmers across several states have raised concerns that decision-making on loans and other agribusiness transactions has become increasingly centralised by the Big Four.

The Weekly Times asked regional Australia’s six largest financiers — ANZ, Bendigo, Commonwealth, NAB, Rabobank and Westpac — how many agribusiness staff members they had on the books in 2019 (the year the Royal Commission findings were released) to now.

Both Bendigo and Westpac refused to answer while others provided an indirect response, except for Rabobank, which said its staffing numbers had risen over the past five years.

Victorian Farmers Federation president Emma Germano said southwest Victoria’s green drought had highlighted a wider problem over the retreat of regionally-based agribusiness bankers.

“Finding agri-bankers is near-on impossible,” Ms Germano said.

“You start a business relationship with someone who gets an understanding of how you operate, how your farm operates.

“Next minute, the person changes. You don’t even get told that the agri-banker has changed.

“It appears to me a huge gap between the person who has a cup of coffee with you on the farm and the powers-that-be that ultimately make the decisions.”

Victorian Farmers Federation president Emma Germano. Picture: Supplied

Ms Germano said the retreat of agri-banking professionals appeared to have coincided with bank branch closures across regional Australia.

In May, a senate inquiry into regional bank closures found self-regulation by the Big Four had failed rural Australian customers.

More than 300 branches have shut across regional Australia since 2021, with the inquiry providing a temporary stay of execution for 10 branches earmarked for closure including the Commonwealth Bank’s presence in Bright and Junee.

Last month, Ms Germano and Australian Dairy Farmers president Ben Bennett called out the Big Four for allegedly using the lack of a government-declared drought in southwest Victoria in order to not provide financial relief to farmers.

However, such declarations or ‘exceptional circumstance’ regions were abolished in 2012 under Canberra aid reforms.

Three of the four banks said a declaration was not needed, with Westpac the only institution not to respond to the claims.

“It’s welcome that most of the banks have ruled that out, on the record,” Ms Germano said.

“But there’s a significant shift in the economy and how the banks are responding. If that coincides with a downturn in farming, in farm receipts or farm profitability — whichever way you want to look at that – it becomes problematic.”

While Victorian farmers have raised concerns over an agribusiness services withdrawal, farm lobby leaders in other states have witnessed the trend too.

Queensland Farmers’ Federation chief executive Jo Sheppard said banks must give back to the regional communities that contribute to their profits.

“With the pandemic’s workforce adjustments, remote work is now feasible and there is no reason why banks cannot have branches in regions while workers perform other necessary banking institution roles remotely,” Ms Sheppard said.

While Victorian farmers have raised concerns over an agribusiness services withdrawal, farm lobby leaders in other states have witnessed the trend too. Picture: Zoe Phillips

NSW Farmers vice president Rebecca Reardon said it was critical banks maintained their services in towns across rural Australia.

“Having bank managers on the ground and accessible at a grassroots level across the nation is critical to ensuring farm businesses can get the tailored support and service they need to be productive and profitable,” Ms Reardon said.

“Basing all bank services in the big cities would put farmers and rural communities at a real disadvantage.”

WA Farmers president John Hassell echoed the NSW view, saying WA agribusiness services had been cut in line with branch closures.

In March, the Commonwealth Bank announced it would close the entirety of its Bankwest branch network by October 2024 — with 17 regional branches closing forever.

“If you close branches, then the bank managers and the agribusiness experts that know how farming works are lost,” he said.

Tasmanian Greens senator Nick McKim was one of the key lawmakers that helped establish the Banking Royal Commission seven years ago.

“Banks are making massive profits and can easily afford to offer better support for customers facing financial challenges,” he said.

“They need to step up. Interest rate relief, deferred payments, and meaningful support should be offered proactively — not as a last resort after borrowers are already struggling.”

Both Bendigo Bank, which operates subsidiary Rural Bank, and Westpac declined to comment to The Weekly Times’ queries.

Rabobank Victoria and Tasmania state manager Sally Bull said: “The bank’s staff numbers have been increasing in its regional network, with employee numbers in Victoria growing almost 20 per cent in the past five years.

“Currently, close to 70 per cent of the bank’s Victorian employees are based in rural and regional Victoria.”

NAB regional and agri-banking executive Khan Horne said: “Anyone finding things tough, please get in touch with your bank – we’re here to help.

“Our agribusiness bankers work closely with primary producers to understand how we can best support them,” he said.

A Commonwealth Bank spokeswoman said: “Together with CBA’s commitment to keep all our regional branches open until at least December 2026, over the past two years we have grown our team of business bankers who support regional and agribusiness customers.”

ANZ Bank did not respond in time for deadline.