Thursday, 02 July 2020 09:14

Farm Debt Mediation a useful backstop — Feds

Written by  Staff Reporters
Federated Farmers president and commerce spokesperson Andrew Hoggard. Federated Farmers president and commerce spokesperson Andrew Hoggard.

Farmers are throwing their support behind the Farm Debt Mediation Scheme.

The scheme requires creditors to offer mediation to farmers who default on payments before they take any enforcement action.

Federated Farmers says the scheme is one farmers would hope to never have to use, but it’s a useful backstop if a farm’s finances do go pear-shaped.

"We strongly supported this legislation as it was shaped and debated by the select committee and Parliamentary processes over the last year or so and we’re glad it’s now in place," says Federated Farmers president and commerce spokesperson Andrew Hoggard.

The Federated Farmers May 2020 Banking Survey showed more than 80% of farms carry a mortgage and overdraft.

While 69% of the 1,400 farmers who responded were ‘satisfied’ or ‘very satisfied’ with their banks, 19% felt ‘under pressure’ from their banks, rising to 28% among arable farmers.

"It’s an uneven playing field in terms of available resources when a farmer and bank are in dispute. This legislation provides a platform for mediated communication," says Hoggard.

"Although we hope it won’t have to be used very often, it will have done its job if it helps banks and farmers find enduring and sustainable solutions before it is too late."

Farmers wishing to access the scheme should visit the MPI website.

More like this

Feds’ election wish list

Federated Farmers has released its election manifesto, advising the incoming government on the policies farmers want.

The migrant workers dilemma

Dairy farmers want more Kiwi workers, but they also want relaxed immigration restrictions. So, what's the problem?

Featured

 

Limited feed puts ewes at risk

Severe feed shortages in parts of the country mean many ewes are on a nutritional knife-edge heading into lambing and could be at risk of developing metabolic disorders.

Jack’s unique solution

Jason Jack was left with severe spinal injuries after a wakeboarding accident when he was 29, but that hasn’t stopped him getting out and about in difficult environments.

National

A ticking time bomb

Our dairy industry risks being exposed to a ‘ticking time bomb’ of unethical players unlawfully passing off New Zealand-made and…

Nervous wait for winter

The unknown of what winter will bring is very much on the mind of the Hawkes Bay Rural Support Trust…

Be careful, Potatoes NZ!

Moves by the NZ potato industry to have anti-dumping tariffs imposed on European imports could play into the hands of…

China keeps dairy prices high

Whole milk powder (WMP) prices are now sitting above pre-Covid-19 levels and New Zealand farmers can thank a resurging Chinese…

Machinery & Products

Hydrogen excavator a first

While most motive industries are focused on hybrid or EV power plants, JCB has developed the construction industry’s first hydrogen-powered…

Jack’s unique solution

Jason Jack was left with severe spinal injuries after a wakeboarding accident when he was 29, but that hasn’t stopped…

HP and digital tech combo

The latest New Holland T8 GENESIS is said to capitalise on the productive combinations of Stage V horsepower and digital…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Spell check

Your old mutt was not surprised to see the NZ Dairy Industry Awards hastily remove the title of this year’s…

About time!

Your canine crusader has been a long-time critic of NZ governments – of all stripes – who, for the past…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter