The major bank puts this down to farmers, as agribusiness equpiment finance has grown 33% from 30 September 2019 to 30 September 2021.
Tractor finance is also up 69% over the same period, and NAB's regional and agribusiness executive, Julie Rynski, says Australian winter crop production will reach a record high of 58.4 million tonnes.
"[This is] even with flooding causing some losses and downgrades across several production regions," Ms Rynski said.
"The area planted to summer crops in 2021–22 is forecast to increase by 36% to reach 1.4 million hectares.
"Farmers are also being incentivised by the instant asset write-off scheme, which was expanded substantially in the 2020-2021 Federal Budget to $150,000, largely as a COVID-19 stimulus measure.
"In the 2021-2022 Federal Budget, the scheme was extended for one year to 30 June 2023, providing a longer window of opportunity for agribusinesses to make on-farm investments."
NAB finance for trucks and trailers is up 40% over the past two years, while construction equipment finance such as for cranes and earth movers is up 39%.
"This is reflective of the ongoing migration of many capital city residents to regional Australia, which is great news for regional communities and their local economies," Ms Rynski said.
"Overall regional net migration grew by a further +14% over the quarter to September 2021, according to data released by the Regional Australia Institute."
Largely untapped SME loan scheme gets extended
Earlier this week the Morrison Government announced it is extending the SME Recovery Loan Scheme by a further six months to June 2022.
To-date about 80,000 loans worth approximately $7.3 billion have been written under the scheme since it began in March 2020.
This is well-short of original estimates as the Government in 2020 earmarked up to $40 billion for the Scheme.
The Scheme allows small businesses with turnover less than $250 million to access loans up to $5 million over a term of up to 10 years.
However the Government in the latest round reduced the loan guarantee from 80% to 50%.
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Harrison Astbury
Harry O'Sullivan
Emma Duffy