Tuesday, 12 November 2024 12:55

Time to reset

Written by  Milking It

OPINION: New Zealand needs a rethink about how banks allocate capital.

The founding director of NZ Agri Brokers, Andrew Laming, reckons the banking structure massively favours lending to housing, at the expense of the productive sectors, particularly agribusiness.

Between 2018-2024, lending to housing grew 45.54% while lending to agri grew 3.44%.

He says, put plainly, over the last 6 years, the main banks collectively advanced an extra $11 billion to housing and just $2 billion to agri.

"These structural issues also make lending to agri (& business) more expensive (the margins are almost double in agri on average and in some cases can be higher), even though agri lending losses are actually very low. This is a massive fiscal drag on the NZ productive sectors."

A shake-up of the banking sector's priorities is long overdue!

More like this

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

Virtual fence probe

OPINION: Should there be an inquiry into virtual fencing technology for cows?

Feed from farmers

OPINION: The country's dairy farmers will now also have a hand in providing free lunch for schools.

Brighter future

OPINION: The abrupt departure of Synlait chief executive Grant Watson could be a sign that Chinese company Bright Dairy, the new majority owner of the listed company, is taking charge.

Featured

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

Sharemilker completes the trifecta

The major winners in the 2024 West Coast/Top of the South Share Farmer of the Year award, Michael and Cheryl Shearer were happy to complete the trifecta.

National

Organic sector backtracks on GE

Organics Aotearoa New Zealand (OANZ) says the Government’s new gene editing and genetic modification reforms could leave New Zealand as…

$3b windfall?

Fonterra's proposed sale of its global consumer business could fetch over $3 billion but not all proceeds will end up…

Machinery & Products

Milk Sustainability Centre launched

The recently announced Milk Sustainability Centre – a collaboration between global giant John Deere and milking and feed specialists De…

Data connection made easier

New Holland and Case IH are introducing new advancements in their precision technology stack to make farming easier and more…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter