ANZ defends farm lending rates
The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.
An $800 million tax-free capital return announced by Fonterra will be "very welcomed" by farmers, says Federated Farmers dairy section chair Richard McIntyre.
He says the capital return, planned for October, will help farm budgets under pressure from a drop in the forecast milk price and rising input costs.
"We started the year with a forecast price of $9.50/kgMS and it has dropped to $8.50," McIntyre told Dairy News.
"This left a bit of a hole in the budget. For many farmers this season will be break even.
"Therefore, this extra money will be very welcome"
Fonterra had previously indicated an intension to return $1 billion to shareholders and unit holders.
However, this was linked to the sale of its Chilean Soprole business and a review of its Australian business.
In November last year, Fonterra announced that it had sold its Soprole business for $1.005 billion.
However, the co-op also decided to retain its Australian assets.
Fonterra chief executive Miles Hurrell says following completion of the sale of Soprole, it intends to reduce debt and return around 50 cents per share and unit.
"We are aiming for a record date for the proposed tax free capital return in late September 2023, with cash to be received by our farmer owners and unit holders the following month.
"Implementation of the capital return will require a Scheme of Arrangement to be voted on by shareholders, and approval by the High Court, which is a common process for this type of transaction.
"More information on this process will be provided to our farmer owners and unit holders in due course."
Fonterra remains committed to a strong balance sheet as well as an "A" band credit rating, he adds.
He also noted that the sale of Soprole remains subject to satisfaction of condition previously announced, including commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra.
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
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