Rabobank general manager for rural Australia, Peter Knoblanche, says the bank is continuing to see strong activity in the rural lending market as Australian primary producers and agribusinesses seek to capitalise on strong global commodity prices and improved production outlook for the current season.

"Despite the concerns emanating from the current uncertainty on global financial markets, we are not witnessing any noticeable drop off at all in farmer appetite for finance and our lending volumes are strong and growing," Mr Knoblanche said.

"This is a good indication that – at least for now – farmers are confident about the fundamental strength and positive outlook for the sector."

Mr Knoblanche said that while the current unrest on world financial markets had implications for the entire global economy, the Australian agricultural sector had a number of positive factors in its favour and a very optimistic long-term outlook.

"Australian agriculture is benefiting from historically high commodity prices and, despite the impact of ongoing dry conditions in some parts of the country, is on track for an improved season particularly in the cropping sector," he said.

"The recent fall in the Australian dollar exchange rate is also helping agricultural exporters, while the reduction in interest rates had also been welcome news for farmers."

Mr Knoblanche said Rabobank was in a strong position to assist those in the rural sector with their financing requirements in the current market environment.

"As part of the AAA rated international Rabobank, which is ranked as the safest nongovernment bank in the world, we are in the position that is absolutely just business as usual for us in terms of our rural lending activities," he said.

Mr Knoblanche said Rabobank's cooperative ownership and structure also added to the bank's solid position in times of market unrest.

Rabobank was founded as a farmers' cooperative more than 110 years ago and is still structured and run as a cooperative.