Elders Rural Bank managed less than one per cent growth in its loan book in the year to June. With good weather and commodity prices and lower input costs, farmers have enjoyed strong cash flow, but they have used it to pay down debt.Elders Rural managing director Paul Hutchinson said the general economic climate was another factor holding back farmers from making capital investments. Hutchinson said: “After a good season they might look at buying the farm next door but that has not happened this time.”Hutchinson is budgeting for stronger demand for agri-finance in the current year and expects growth in loans under management to grow by eight to 10 per cent. Despite the weak demand for finance, Elders Rural produced a 9.7 per cent increase in earnings for the 2008/09 year.Yesterday it reported net profit of $45.1 million, up from $41.1 million in 2007/08. The net interest margin on the $3.6 billion loan portfolio went up from 2.05 to 2.07 per cent.Non-performing loans increased from 0.33 to 0.62 per cent (net non-performing loans to gross loans). The increase was due to a single account.Source: The Sheet