Banking Advisor: Most dairy farmers don’t fully understand how banks assess credit
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
The lending options provide a potential opportunity for greater affordability and access to Halter’s virtual fencing system used by hundreds of farmers and are open to existing and prospective Halter customers who meet eligibility, lending and identification criteria.
The banks’ preferential rates are based on: ANZ’s business green loan floating rates, ASB’s special purpose base rate and BNZ’s reduced floating and fixed rates, tailored to individual clients.
Halter notes that products/rates are subject to change. Lending and eligibility criteria, terms, conditions, and fees may apply.
Farmers also receive a 10% discount from Halter for paying 2-years up front via the sustainability loans, with the flexibility of monthly repayments.
For example, compared to average term loan lending rates, a typical 500 herd dairy farm could save up to $4,700 across two years through a lower interest sustainability loan and Halter discount. This example, for demonstration purposes only, is based on a 6.15% interest rate and 10% Halter discount for 2-year upfront payment terms.
“These offerings unlock pathways to sustainable lending across the lion’s share of rural lenders and is another step towards helping Halter farmers run more productive, sustainable and resilient farms,” says Halter partnerships manager Steve Crowhurst.
“As well as driving farm performance and profitability, Halter is a tool that helps farmers easily deploy sustainable farming practices outlined by industry bodies. Halter incorporates virtual fencing and herding, precision pasture management, and animal health and location monitoring.”
Halter farmers are advancing their sustainability outcomes by reducing fuel through less farm vehicle use (some by up to 47%), increasing pasture harvest and therefore reducing the need for supplements, and reducing nitrogen via more strategic application informed by cow location data.
They can also improve fertility which reduces the number of heifer replacements needed on farm and therefore overall farm emissions.
Halter’s virtual fencing and herding allows farmers to better manage waterways, using the Halter app to easily create grass buffer strips between stock and waterways, keep stock away from critical source areas, move stock off vulnerable areas of the farm at any time during significant weather events, and to reduce pugging.
“We’re excited to have New Zealand’s largest financial institutions acknowledging agritechnology that is driving sustainability on farm,” says Crowhurst.
“Traditionally in the industry we’ve seen sustainability goals in tension with lifting productivity. Farmers can use Halter as a tool to run high performing farms while having the flexibility and bandwidth to farm in a way that mitigates impact on the environment.”
Halter farmers are achieving financial gains by generating more milk in the vat and the potential to achieve better live weight gains.
Farmers interested in these sustainability loans can visit www.HalterHQ.com/financing or speak to their bank’s relationship manager.
Farmers banking with Westpac and Rabobank can also reach out to their relationship manager for alternative lending options for Halter services.
