BNZ Launches First Farm Funding Boost Scheme
Bank of New Zealand (BNZ)will expand its First Farm support with a new funding boost designed to help more farmers and growers take their next step into farm ownership.
The First Farm proposition helps lower barriers to entry for those buying their first dairy herd by reducing deposit requirements. It also pairs every approved customer with an experienced farmer mentor for their first two seasons.
BNZ general manager agribusiness and corporate banking Dave Handley says this will help ensure their first steps into farm ownership or sharemilking are a success.
Handley told Rural News that initial feedback has been positive.
"All parties acknowledge how hard it can be for quality operators to save to get in a position to buy their first herd or farm, this offering helps bridge that gap but importantly, wrapping the support around them of a proven operator who know what it takes to succeed long term," says Handley.
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.
Handley says for many young farmers, getting their first foothold on the farming ladder is very challenging.
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"First Farm is about bridging that gap by making ownership more achievable.
"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."
The bank is expecting uptake will be strong. Interest from young farmers is also strong.
"We have seen that younger farmers have been thirsty for knowledge and have a desire to build their networks: all in the efforts of progressing through the farming ranks. We think this package will have real appeal."
Handley says the bank's argi partners around the country are talking to younger farmers every day on what the next step in their farming journey looks like as well as helping plan the path to getting there.
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.
Handley says they hope to extend the offering to other agri sectors soon.
"We want to make sure we bed down the dairy programme first and take the lessons we learn from that and adopt them for future iterations.
"With each industry within the NZ Agri sector having its own characteristics, we can't just roll out a 'one size fits all'."
Positive Vibe
Dave Handley says most of the agri sector is in really good shape and mood and sentiment has come a long way over the 12 months.
"We have seen a lot of farmers over the last 12 months direct cash to repaying debt in order to make their business more than financially resilient, however we have now seen a shift with our clients looking at expansion opportunities or investing back on farm in infrastructure or technology," he told Rural News.
"History tells us that when are farmers are looking to do these sorts of transactions, the feeling both on farm and about the industry they are in is really positive."
