A year on from the establishment of the Personal Property Securities Register (PPSR), NAB Agribusiness is foreseeing a time when the system may assist more people to get into farming.

NAB Agribusiness Head of Southern and Western Australia, Neil Findlay, says the bank often has people coming in with a good business case or idea. “In the past, if they didn’t have the collateral to support the borrowing should something not go to plan, it wasn’t always easy to provide funding. The register allows a lender to record its interest in non landed assets and protect these interests.”

Neil said it’s also really important for everyone to understand what the PPSR means to them, especially if they buy or sell anything with deferred payments.

“While the initial period has been complex for us and required a lot of changes in the way we register securities, it’s also simplified things as there were more than 20 old registers which have now been rolled into one.

“For instance, the old REVS system for checking whether there’s money owed on a car you’re thinking of buying is now part of the PPSR. And where people near the border have land or stock in two states, there used to be different rules and registers.

“However, it can get complicated in some instances too, so we’re encouraging all our customers to check with their lawyers and other advisors to make sure they’re protecting their interests.”

Neil says it’s likely to provide people wanting to get into farming for the first time, and those leasing land, with the ability to better leverage the assets they have. “It’s not going to happen right away, but I can see a time when the PPSR will assist those putting forward a good business case to access working capital.

“They may want to buy more stock or machinery, or inputs such as feed or fertiliser, but don’t have traditional assets such as land to mortgage.”

For more information:

• Personal Property Securities Register