The agriculture sector is getting about half the cuts given to residential mortgage holders, critics say.

During question time last week, Opposition agriculture spokesman John Cobb asked Federal Agriculture Minister Tony Burke why the RBA rates weren't being passed on to agriculture.

Mr Cobb said that during Mr Burke's October 17 summit with banks and farming organisations, the minister had said interest rate cuts could soon be expected.

"Given the Reserve Bank has now cut interest rates since the summit, why has the Minister and his Government failed to get banks to pass on the interest rate cuts in full to farmers, particularly on agricultural loans and overdrafts?" Mr Cobb said.

Mr Burke said the Government continued to say, as we have always said, that just as we expect interest rate cuts to be passed on as soon as possible to residential customers, so too do we have that expectation for Australia's farmers and Australia's small businesses.

"The comments quoted were made by me at a summit held on a Friday when I had a high expectation that we would begin to see those cuts coming through," he said.

"Most of the banks then went ahead with cuts on the Monday following that Friday, but the 75-basis points cut, which happened subsequently, has largely not been passed on at all to Australia's farmers.

"When I addressed the Farm Writers Association last Friday (week), I again pressed the expectation and continue to make the expectation of the government clear to the banks that just as we expect residential customers to receive the benefits for cash-based products."

WA Liberal Senator Mathias Cormann said because the Government was underwriting banks with its unlimited guarantee on deposits there was no excuse for them not to pass on the RBA cuts in full to all sectors.

"It is, of course, critically important for small businesses and farmers to get the full benefit of interest rate cuts from the Reserve Bank to ensure that they can continue to provide jobs," he said.

Meanwhile, some banks have passed on all or some of the RBA 1pc cut last week.

National Australia Bank (NAB) announced it would reduce its variable business interest rate by 1pc a year for new and existing agricultural customers.

NAB agribusiness general manager Khan Horne said while funding costs overall remained elevated, the NAB was pleased to pass on the full cut.