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.
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.
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.