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Farmers anxious about Great Southern

Posted on May 20, 2009, 3:03pm and updated on May 21, 2009 at 1:04 pm

Worried farmers who have signed land lease agreements with the collapsing Great Southern have been scurrying for advice since the agribusiness giant’s administration became known on the weekend.

Great Southern competitor ITC has been inundated with calls from existing and prospective farmers who lease their land for tree plantations, asking if ITC would be interested in taking over their lease.

ITC spokesperson Adam Redman told The Border Watch phones were “running hot from farmers, particularly in the Green Triangle”.

“They are concerned about what would happen with their lease agreements and whether ITC would be interested in taking over their lease,” Mr Redman said.

“We are saying to farmers, while ITC is always looking for land, it is still early days.

“We are looking at each one on a case-by-case basis.”

Mr Redman said farmers could take comfort in knowing that the forestry sector was still positive.

“There are foreign investors looking for land and the Green Triangle is famous for its good quality product,” he said.

Meanwhile, it is understood that 43,000 investors face losing up to $4 billion and banks, including ANZ and the Commonwealth, are owed up to $820 million by Great Southern and its investors.

Administrators Ferrier Hodgson have informed creditors and investors of a creditor’s meeting in Melbourne on May 27.

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