McClay urges patience on KiwiSaver for first-time farmers
We're working through it, and we'll get to it.
She says the Government cannot afford to let it become a broken promise.
"We don't want to see young farmers going into the next dairy season unable to access their KiwiSaver for their deposit," de Wet told Dairy News.
"The quicker we can become herd owners, the quicker we can get into farm ownership. That's what New Zealand and our dairy sector really needs."
Her comments come after Federated Farmers launched a petition last week asking the Government to honour its promise to relax KiwiSaver rules so young farmers could access KiwiSaver funds to buy a first farm, flock, herd or home.
Current KiwiSaver rules mean a person can only use their KiwiSaver to purchase a house to live in. Federated Farmers want the rules changed so farm staff in service tenancies (living on farm) can use KiwiSaver to purchase a house.
Feds also want a rule change so that KiwiSaver can help young farmers who have some savings but aren't quite able to get the bank's backing to invest in their first herd or property.
Federated Farmers dairy chair Richard McIntyre says accessing KiwiSaver to buy the first farm, flock, herd or home has been an incredibly hot topic for farmers.
"On the campaign trail of the 2023 election, (now Agriculture Minister) Todd McClay stood up in front of young farmers in Morrinsville and made a promise that he would make it happen.
"I'm sure he had the best of intentions, but unfortunately farmers have been bitterly disappointed by the lack of action from the Government on the issue to date."
De Wet says she was excited when the announcement was made 18 months ago.
"It's a commonsense idea that would help so many young farmers progress much more quickly through their farming careers - particularly those looking to get into sharemilking.
"A lot of younger farmers really struggle to make that leap up from management to business ownership because of the cost of taking that first step. Having your KiwiSaver to help with your deposit would make it so much easier."
De Wet migrated from South Africa five years ago. She's a shareholder and manager of their family business sharemilking 150 cows at Te Aroha. The family also milk 600 cows on two farms at Paeroa.
While de Wet hasn't bought her first house or farm, she's heard from plenty of friends that farm ownership still feels out of reach for many of them.
"Most young farmers can't buy a house because we're unable to meet the KiwiSaver requirement to live in the home for six months. It just doesn't work for farm staff, who generally live in accommodation on the farm.
"If the rules were to change, I think it would be a huge incentive for young farmers to start putting money in their KiwiSaver. Now there's a general feeling that KiwiSaver contributions just lock your capital away at the time you'll need it the most."
De Wet is backing the Feds' petition and is urging farmers to sign the petition online at kiwisaverforkiwifarmers.co.nz or at Federated Farmers Fieldays site D70.
She says young farmers are looking forward to the Government acting on the petition.
