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

Rain misses Taranaki region

The 'atmospheric river' of rain that swept down the country last week almost completely avoided one of the worst drought-affected regions in the country – coastal Taranaki.

Should've waited

OPINION: The proposed RMA reforms took a while to drop but were well signaled after the election.

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

Helping protect sheep from parasites

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.

National

Machinery & Products

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

Grabbing bales made quick and easy

Front end loader and implement specialist Quicke has introduced the new Unigrip L+ and XL+ next-generation bale grabs, designed for…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter