David Littleproud calls on banks to pass the full rate cut for drought-stricken farmers.
David Littleproud calls on banks to pass the full rate cut for drought-stricken farmers. Nev Madsen

MP calls on banks to pass on full rate cut for farmers

DROUGHT Minister David Littleproud has called on banks to pass on the full rate cut announced by the RBA this week to farmers, many of whom are battling drought.

"The farmers who grow our food are struggling with drought and deserve the full rate cut to be passed through,” Mr Littleproud said.

"Many farmers owe banks significant amounts of money, and so interest rate cuts are relief to farming family budgets.”

The Federal Government has done its bit, contributing $7 billion worth of drought support, which includes the $5 billion Future Drought Fund.

"Passing on rate cuts in full means farmers get the full benefit, and I call on banks which have made millions from farmers over the years to do the right thing and pass this cut through in full,” Mr Littleproud said.

He said he was hopeful the banks would respond.

"The banks responded last year when I asked them to allow farm management deposits to be counted as offsets against their debt and I hope they respond this time too,” Mr Littleproud said.