MORTGAGE holders can expect to save about $50 per month on the cost of an average home loan after Tuesday’s interest rate cut but the news is also music to the ears of many farmers.

Nashdale orchardists Cliff and Yvonne Armstrong have debts of close to half a million dollars, less than the average $702,000 debt held by most farmers, but still enough to make a 0.25 per cent rate cut a welcome bonus.

“We need a low rate and a low dollar so we can export,” Mrs Armstrong said.

“I think [the rate cut] will be a positive for us ... the market has come off the boil in the last couple of months.”

For farmers like the Armstrongs, borrowing is a necessity with income often not coming until well after harvesting and packing costs have been met.

Mrs Armstrong is hoping her bank will pass along the rate cut which would free up more than $1000 in the yearly budget.

The money will go right back into the business or towards clearing debt, she said.

Federal Agriculture, Fisheries and Forestry Minister Tony Burke also expects the Reserve Bank announcement to bring welcome relief to farmers across the country.

“While average farm debt has grown, farmers have also had to cope with the social pressures of drought on their families and communities,” Mr Burke told Parliament.

“If today’s announcement is passed on in full it will put an average of more than $146 per month back in farming families’ budgets or around $1755 per year.”

Mr Burke urged all rural lenders to quickly pass on the Reserve Bank’s official interest rate cut in full.