$150B farm succession challenge looms for NZ agriculture
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Rabobank New Zealand will reduce the variable base rate on its rural loans by 0.5%, effective from 16 October 2024.
Todd Charteris, Rabobank New Zealand chief executive, says the decision follows the Reserve Bank’s announcement that it would cut the official cash rate (OCR) by 0.5%.
“We have carefully reviewed our position and are pleased to be able to pass on the full 0.50% rate reduction to our New Zealand food and agribusiness lending clients at this time,” Charteris says.
Additionally, Rabobank’s fixed rates within its All-In-One loan facility reflect daily changes in wholesale markets that had priced in the expected cuts to the OCR within the last month, he adds.
“These cuts will provide a welcome reduction in costs for New Zealand’s farmers and growers who have faced high interest and farm input costs over recent seasons,” Charteris says.
“Our September Rural Confidence Survey found farmer confidence in the broader agri economy is now on the up – off the back of higher commodity prices and lower interest rates – and this further rate drop should act as another boost to primary producer sentiment,” he concludes.
Profitability issues facing arable farmers are the same across the world, says New Zealand's special agricultural trade envoy Hamish Marr.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Tighter beef and lamb production globally have worked to the advantage of NZ, according to the Meat Industry Association (MIA).
Groundswell is ramping up its 'Quit Paris' campaign with signs going up all over the country.
Some farmers in the Nelson region are facing up to five years of hard work to repair their damaged properties caused by the recent devastating floods.
Federated Farmers is joining major industry-good bodies in not advocating for the Government to withdraw from the Paris Agreement.
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