Agricultural Lending Grows as Farmers Invest in Expansion

By Ian Rogers

The Australian Prudential Regulatory Authority (APRA) reports a 6% increase in agricultural lending to the farm sector during 2022-23, with total agricultural debt reaching $120.5 billion.

Dr. Jared Greenville, Executive Director of ABARES, attributed the rise in debt to ongoing investment in the sector.

“Farmers are borrowing to reinvest in their businesses, with a particular focus on land purchases as they expand their operations,” Dr. Greenville said.

“Higher land prices have increased equity, enabling farmers to manage debt more effectively, while strong farm incomes over recent years have supported their ability to service these borrowings.”

Uneven Distribution of Farm Debt

The data reveals an uneven distribution of debt across farms. In 2022-23:

• 5% of broadacre and dairy farms—mostly those with the largest turnovers—accounted for nearly 40% of total debt.
• Nearly 50% of farms in the same categories carried little to no debt.

Dr. Greenville highlighted the low proportion of farms in financial stress due to debt in 2022-23.

“For instance, fewer than 1% of broadacre and dairy farms had both low borrowing capacity and high debt-servicing commitments, compared to an average of 7% over the last 20 years,” he noted.

Future Challenges

Despite these positive indicators, Dr. Greenville acknowledged shifting dynamics since the 2022-23 reporting period.

“Higher interest rates, combined with lower average farm incomes, changing seasonal conditions, and fluctuating commodity prices, are likely influencing borrowing decisions moving forward,” he said.

Explore the Data

Detailed insights into trends in farm debt can be found in the ABARES report: Trends in Farm Debt: Agricultural Lending Data 2022–23.

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CHOICE Shonky Awards 2024: Calling Out the Worst in Products and Practices

By Ian Rogers

The CHOICE Shonky Awards, now in their 19th year, continue to spotlight the most misleading, disappointing, and outright shonky products and business practices in Australia. This year’s awards shine a light on five standout offenders that failed to deliver on their promises—or fairness.

The 2024 CHOICE Shonky Award Winners

1. Meta – Failing to Protect Aussies from Scams: With social media scam losses hitting a record $95 million in 2023, Meta earned its spot by not adequately addressing scams on platforms like Facebook, Instagram, and WhatsApp. CHOICE reported suspicious ads to Meta, but poor response times and loopholes allowing repeat offences highlight a lack of commitment to user safety.
2. Acerpure Clean Lite Stick Vacuum – The Worst Stick Vacuum Ever Tested: Acerpure’s $199 vacuum promised “great suction power” but delivered abysmal results in CHOICE’s performance tests, scoring just 10% on hard floors. Prone to clogs and requiring excessive maintenance, this vacuum creates more work than it solves.
3. NIB – Unfairly Charging Single Parents: Health insurer NIB imposes significantly higher costs on single parents compared to couples for equivalent policies. Single parents face nearly double the premiums to add a child, with their policies sometimes costing more than those for childless couples—exposing systemic inequity in health insurance pricing.
4. Daily Juice Co – Misleading ‘Green’ Juice Claims: Daily Juice Co’s “green” juices contain no vegetables and rely solely on food colouring for their green hue. CHOICE’s experiment with the listed ingredients revealed the juice’s true colour—orange—proving there’s nothing “green” about it.
5. GroundingWell Grounding Socks – Unsubstantiated Health Claims: GroundingWell’s $40 socks promised to alleviate pain, improve sleep, and reverse aging but failed to provide evidence for any of these benefits. Worse, the poorly constructed socks fell apart after two uses, making them doubly shonky.

CHOICE CEO: Shonkys Still Needed More Than Ever

“As we near 20 years of the Shonky Awards, it’s clear they remain essential,” said CHOICE CEO Ashley de Silva. “From Meta’s inaction on scams to NIB’s inequitable pricing, and products like the Acerpure vacuum and GroundingWell socks, shonkiness is alive and well.”

CHOICE urges consumers to remain vigilant and encourages regulators to hold companies accountable for misleading practices.

Visit CHOICE Shonky Awards to learn more about this year’s winners and how to protect yourself as a consumer.

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Bitcoin Ascends Towards $100,000 Amid Broader Cryptocurrency Market Rally

By Jeff Gibbs

Bitcoin is rapidly approaching the symbolic $100,000 mark, as its price surged 6.8% in the past 24 hours to $87,600, igniting optimism among investors and enthusiasts. Other cryptocurrencies also posted gains: Ethereum rose 3.3%, Avalanche climbed 8.4%, Dogecoin soared 35.1%, Shiba Inu added 2.5%, BNB increased 1.1%, and XRP jumped 9.9%.

While Donald Trump’s presidential election victory is a significant catalyst, broader trends are the primary forces driving this rally, including Bitcoin’s post-halving dynamics and favourable macroeconomic conditions.

Trump’s Election: A Short-Term Catalyst

Trump’s win has captured headlines in the crypto world due to his comparatively favourable stance on digital currencies. During his campaign, Trump became the first presidential candidate to accept cryptocurrency donations and even hinted at creating a federal Bitcoin reserve. High-profile crypto figures, including the Winklevoss twins and Kraken co-founder Jesse Powell, contributed substantial funds to his campaign.

Despite this, experts see Trump’s victory as a short-term catalyst. According to BitMEX co-founder Arthur Hayes, Trump’s presidency might accelerate Bitcoin’s ascent past $100,000, especially given the historical strength of Bitcoin in October and November following halving years. However, Hayes and others argue that Bitcoin’s long-term trajectory is shaped by fundamental drivers rather than political developments.

Broader Factors Driving Bitcoin’s Rally

The current Bitcoin rally reflects pent-up demand from its April halving, a programmed reduction in mining rewards that historically precedes significant price increases. Jesse Myers, co-founder of Onramp Bitcoin, noted, “The incoming Bitcoin-friendly administration has provided a catalyst, but the real story is the post-halving bubble.”

Bitcoin’s appeal as a hedge against inflation and currency debasement also remains a critical factor. Analysts argue that mounting national debt and inflationary spending could bolster Bitcoin’s position as a store of value. Hayes highlights the inevitability of increased monetary easing, regardless of political leadership, as a reason for Bitcoin’s potential to thrive in inflation-prone economies.

Still, Bitcoin’s behaviour as a risk asset, closely tied to market sentiment, underscores the challenge it faces in proving its efficacy as an inflation hedge.

Institutional Adoption: A Game-Changer

Wall Street’s growing involvement has further legitimised Bitcoin. Financial institutions like Goldman Sachs and Morgan Stanley have increased their Bitcoin holdings, signalling a shift in how the asset is perceived by institutional investors. Matt Hougan, CIO of Bitwise Asset Management, suggests that this adoption enhances Bitcoin’s credibility and stability, paving the way for it to become a portfolio staple rather than a speculative asset.

“Institutions see Bitcoin’s transformative potential for financial processes,” Hougan stated, highlighting the role of institutional engagement in reducing volatility and fostering long-term growth.

Outlook

As political and economic factors align, Bitcoin is poised to sustain its upward momentum. While Trump’s presidency might accelerate short-term gains, the enduring impact of Bitcoin’s fundamentals, macroeconomic conditions, and institutional interest will determine whether it can cross—and maintain—the $100,000 threshold. The coming weeks could mark a pivotal moment for cryptocurrency markets as Bitcoin solidifies its status as both a hedge and an innovative financial asset.

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