NEW National Farmers' Federation president Jock Laurie has warned that uncertainty over water rights could jeopardise banks' willingness to lend to rural communities and lead to a plunge in property prices.
Mr Laurie said banks had been very supportive of farmers through the drought but the uncertainty over water reform could change this, The Australian Financial Review reports.
"To have banks continue to have confidence in rural industries, they need to be operating under a piece of legislation they know that their borrowers can operate under and have confidence their equity levels are going to be maintained," he said.
"When you remove that certainty, you put jitters into the property market.
"As soon as you put jitters into the property market, you all of a sudden affect the equity levels of all borrowers."