LIC ends year with $30.6m profit
Herd improvement company LIC has ended the 2024-25 financial year in a strong position - debt-free and almost quadrupling its net profit.
Rabobank regional manager East Coast George Murdoch says the bank would work alongside its farming clients affected by the current severe dry conditions in many areas of the North Island.
"We're committed to supporting clients wherever we can through periods of difficulty, such as major weather events, and, as we have done in the past, we'll work on an individual case-by-case basis to assist them through problems resulting from these events," he says.
Murdoch says clients in applicable circumstances would be eligible for a range of support
measures, including:
• deferral of scheduled loan payments
• waiving of break costs on early redemption of deposits
• waiving of fees on loan increases necessary to assist in rebuilding operations and
• waiving of fees for equipment finance variations.
Rabobank's rural loans were also specifically designed for farmers and offered financial flexibility to help manage through times of difficulty. "Loan products, such as the interest-only Rabobank All in One facility, are designed to maximise cash flow availability during adverse circumstances, including drought," he says.
In addition, the bank was investigating other practical initiatives to assist farmers on the ground with hardships resulting from the drought.
Murdock says stock prices are falling rapidly and supplementary feed costs had risen sharply in recent weeks and, while the financial impact of the drought would be felt for some years to come, the immediate concern was for farmer wellbeing.
Rabobank employees had been contacting clients in drought-affected areas to offer the bank's assistance. He called for impacted clients who have concerns and had not yet spoken to the bank to contact their local rural manager or branch.
The bank's support measures would be extended to clients in all regions of New Zealand impacted by drought.
Murdoch says Rabobank was experienced in working with farmers around the world in drought conditions, including long-term droughts in Australia through the last decade, and more recently in the United States and parts of South America and Europe.
"We understand that as devastating as these conditions can be, they are a fact of life for agriculture," he said. "And these short-term challenges notwithstanding, the longer-term outlook for New Zealand agriculture is very sound."
