Bank of New Zealand launches First Farm initiative

The bank's First Farm proposition, announced today, could help lower barriers to entry for first-farm buyers or those looking to buy their first dairy herd by reducing deposit requirements.

The initiative also pairs every approved customer with an experienced farmer mentor for their first two seasons. This will help ensure their first steps into farm ownership or sharemilking are a success.

Dave Handley,  BNZ's general manager agribusiness and corporate banking, says farmers are the backbone of the country's rural communities and contribute significantly to the economy.

“For many young farmers, getting their first foothold on the farming ladder is very challenging. First Farm is about bridging that gap by making ownership more achievable,” says Handley.

“And this isn’t only about finance. Every farming customer participating in our First Farm programme will be matched with an experienced farmer mentor who has been through the highs and lows of herd or farm ownership and knows what it takes to make a farming business succeed.

"Every mentor-mentee relationship will be slightly different. But the one-on-one support from a proven operator in key areas such as business planning, budgeting, cashflow, governance, and people decisions will make a real difference from day one. Having someone in their corner with that hard-won experience, generously shared, will really make a difference for our industry participants.” 

First Farm matches mentors and mentees by region and experience, provides toolkits and discussion guides, and check-ins at key milestones so the relationship gets the attention it deserves.

“First Farm is also about helping to address the challenge of farm succession,” says Handley.

“Industry surveys show only one third of New Zealand farmers have a formal succession plan in place. We know there are opportunities to make the next step into ownership more straightforward for the next generation while ensuring valuable farming knowledge isn’t lost.

“First Farm does both through more accessible bank funding and structured mentorship which connects experienced farmers with those striving to purchase their first farm or herd, making the transition between generations both more attainable and sustainable,” says Handley.

First Farm is available across the country to eligible first-time dairy farm buyers and those purchasing their first dairy herd for sharemilking.

While initially focused on dairy, BNZ plans to offer similar initiatives to other agricultural sectors in the future. 

To enquire about how First Farm can help you, visit https://www.bnz.co.nz/business-banking/partners/agribusiness.