Speaker - Jeff McDonald, Riverland Lending Services - Farm Finance in a higher interest rate environment

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Speaker - Jeff McDonald

About Jeff

Jeff was born and bred on an irrigation property at Loxton in the Riverland region of South Australia. Instead of becoming the third-generation male on the property, he took on a career in finance instead. After 20 years with a major bank, Jeff established a finance brokerage business in 2002 – Riverland Lending Services (RLS).

RLS has grown over the last 20 years to 15 staff, spread across the country. The RLS Agribusiness Brand was developed five years ago to assist with facilitation work with Primary Producers. This ranges from acting as Independent Chairman on Farm Boards, to Succession Planning – and much more!

Jeff will be speaking from 10:00 am to 10:30 am.

Some of the questions we want to fire at Jeff might include:

• We spoke to you 12 months ago, Jeff and things have changed. What has been the main change?
• Let's pick on your area, the Riverland of SA. I'm told Grape Growers are doing it tough and getting 1970's prices. How are things going?
• What about other Farming industries in your area? How are they going?
• The tougher times, how does that affect the Riverland economy?
• Are you seeing many of your Farming clients geared higher than they ever have been before?
• Who is better off now, the Farmer that never expanded and has bugger all debt? Or the Farmer who scaled up and has debt?
• From the above question, who will be better off in ten years?
• Will a large debt at these new normalised rates hold a Farmer back when interest payments take a fair percentage of the revenue?
• What sort of equity-to-debt ratio would you be happy to see a Farmer have right now? And would your opinion have changed from 18 months ago about that ratio?
• Do you think banks are happy to fund projects but reluctant to do extension or carry on finance?
• I know you are in the lending game, but do you ever see vendor finance anymore?
• Do you have any advice for young people who want to get into Ag and perhaps buy some Land? Do it together?
• Do you have any predictions for interest rates in to the future?
• Are there any new trends in Farm finance, or is it all same same?
• Has your lending book increased or decreased in the last 12 months?