National provider of rural products and services FarmWorks Australia, joined forces today with BankWest under an exclusive financial services agreement that will enable FarmWorks to offer their clients a wide range of lending products and services under the FarmWorks Financial Services brand.
In addition to a range of specialised rural lending products including Harvest Loans, FarmWorks will also offer Equipment Finance, Commercial & Specialised Finance, Housing and Investment Property Finance products and services.
General Manager FarmWorks Financial Services Marcus Kuller said the partnership with BankWest was a positive outcome for the rural community who will now have a greater choice in specialised rural finance providers.
"The current market is competitive, price sensitive and has a range of largely generic products on offer. We are able to compete on product and price with our primary focus and point of differentiation being our people, personal service and value added relationships," Mr Kuller said.
"In addition to finance we can provide clients with access to a complete range of rural products and services via the FarmWorks Group product suite, which includes general merchandise, livestock, independent agronomy and price risk management services. We are also working with BankWest in developing new products," he said.
Previously a Senior Relationship Manager with Westpac, Mr Kuller joined FarmWorks in September 2005 and comes with 22 years banking experience in agribusiness, commercial lending and credit.
BankWest's Head of Regional and Rural Banking Jim Watson said the partnership would strengthen the Bank's and FarmWork's relationship with the regional and rural sector.
"There is a natural synergy between BankWest's and FarmWorks' growth strategy. We are both committed to the Australian agribusiness sector and we are both expanding our customer base in Queensland, South Australia, New South Wales and Victoria," he said.
Mr Kuller said that with the cessation of the Landmark/Rabo relationship and AWB issues, FarmWorks was well placed to build its presence as a specialist agribusiness finance provider in the market both on the West and East Coast.
"Our book is already nearing $40million in W.A., we have had a positive start and a great response from clients," Mr Kuller said.
"Our strategy is controlled growth and leveraging off the FarmWorks network by placing experienced Agribusiness Finance Managers in key regional locations. In W.A. alone we project a client lending book in excess of $300 million within five years representing approximately four percent of the WA agri - lending market. In the short to medium term we are looking to progressively rollout Financial Services nationally with the initial focus being Queensland and South Australia where the FarmWorks brand and network is gaining recognition," he said.
Financial services are a natural progression for the FarmWorks Group, the third largest provider of rural products and services in W.A. with 10 branches, 13 branded agents and FarmWorks Livestock which launched in 2005.
FarmWorks Group Managing Director Kevin Gammage said the basis of the company's vertical integration strategy is to meet client's needs through an increasing range of complimentary products and services.
"We are now in a position to maximise opportunities within WA and focus on growing our interstate retail and wholesale business network. Future opportunities include insurance, grain marketing and real estate," Mr Gammage said.
BankWest's Head of Regional and Rural Banking Jim Watson said the partnership displayed both FarmWorks' and BankWest's commitment to the regional and rural sector.
"We are working in a very competitive space in the agribusiness sector. This partnership adds another dimension to the market and will only serve to benefit the regional and rural community by offering more choice and a better, flexible product offering. We hope to jointly become a dominant agribusiness finance supplier in Australia," he said.
