Farmers don't have heads in the sand

Chris Wheatcroft from WA's Rural Financial Counselling service rejects suggestions that farmers simply ignore financial problems until they become severe.

"There is a notion that farmers put their head in the sand but I don’t accept that."

He said that some farmers probably did rely on past experience of getting through bad times and therefore tried to carry on despite severe financial problems.

However, a lot of farmers face a problem with banks failing to advance credit or wanting to call in loans even though there are early signs of a good season, when farmers need access to credit for chemicals and fertiliser.

Mr Wheatcroft said part of the counselling service's role is to help those who have genuine financial distress understand their position.

"Facilitate the process of people coming to terms with what’s going on."

Dennis McMahon from Legal Aid Queensland says he's seen situations where farmers have three months of mail sitting in the corner, because they are depressed and can't confront the prospect of losing their farms.

Warren Day says by the time people come to ASIC or other organisations it is often after several years of hardship and struggling to keep their farms.

"They've reached the end of their tether and depression is often present."

Mr Day says banks generally try to be understanding, but aren't always well equipped to deal with people in this situation.