Tuesday, 22 June 2021 12:55

Banks cashing in on sustainability

Written by  Staff Reporters
The National Fieldays returned to Mystery Creek last week after a lapse of two years. The National Fieldays returned to Mystery Creek last week after a lapse of two years.

Another bank is offering farmers low-cost 'green loans' to help them tackle environmental impacts.

ASB announced, at the opening of National Fieldays last week, that its new rural sustainability loan will offer a 'market-leading' 2.25% annual variable rate for 'sustainable farming improvements'.

In March, BNZ revealed it was offering a loan discount to dairy investor Southern Pastures, if the company meets water and bio diversity targets on its farm. The New Zealand first $50m sustainability-linked loan isa pilot, but BNZ says it will roll it out more widely if successful.

ASB says it will loan for conservation and biodiversity restoration, and projects to drive the switch to renewable energy, prevent pollution and waste, cut emissions, as well as promote healthy soil, ecosystems, waterways and animal welfare.

General manager for business banking Tim Deane claims ASB’s Rural Sustainability Loan will help future-proof two of New Zealand’s greatest assets: our farmers and our land.

“Farmers tell us climate change and regulatory pressure are big issues keeping them up at night. That’s why we’re digging in and doing more for those who want to go beyond compliance basics and drive change that makes a deeper difference for their farm and ultimately the environment,” Deane says.

He adds that the bank’s farming customers have already invested more than $120 million to plant native trees, install environmentally-friendly effluent systems and fence off waterways.

“Our goal is for our new sustainability loans to back $100 million in green upgrades over the next five years, so New Zealand can continue to lead the world in efficient and profitable farming and command a premium for Kiwi products.”

Deane says applications for loans are now open and the variable rate will be available for up to five years from when the customer makes their first draw down.

More like this

Sustainable finance

Many agricultural loans will now be guided by sustainability considerations including climate change mitigation and adaptation, water use, waste minimisation, labour rights and animal welfare.

Content but cautious

"Content without being confident" is how ASB rural general manager Ben Speedy described the mood among dairy farmers at this month's National Fieldays.


Why should we do more?

OPINION: Managing our dairy sector's impacts inevitably attracts a range of views. Should we do more, less or stay the…

Cattle sale with a difference

Innovation, loss and resilience have brought the Singh family to the point where it is poised to honour its patriarch,…

O'Connor's overseas odyssey

Agriculture Minister Damien O'Connor continued his overseas odyssey in the past week with multiple meetings in the US, Europe and…

Machinery & Products

Protective tint

Now available in New Zealand, Wildcat Static Cling Tint adds a protective layer to the windows of your tractor, harvester…

New owner for stoll

German company Stoll, the well-known manufacturer of tractor front loaders and attachments that claims to be the second largest producer…

Fert spreaders get a revamp

Kuhn has updated its MDS range of fertiliser spreaders, giving farmers more options to upgrade machines as situations change, rather…

Mowers spring into action

With spring upon us, thoughts turn towards shutting up paddocks for conservation and maybe the purchase of new machinery to…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Feeling the heat

US dairy farmers have a new threat to their business - heat waves.

Class action

The news has gone from bad to worse for a2 Milk - the company Synlait had hitched its wagon to.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter