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

Featured

Flood-hit Tasman farms begin long recovery

People affected by the recent two severe flood events in the Tasman district are weary and exhausted trying to deal with the devastation on their farms and orchards, according to the head of the Rural Support Trust (RST) in the region.

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Stop the rot!

OPINION: Bayer Crop Science closing its Hastings research site could be the tip of the iceberg.

Not so cuddly

OPINION: The image of regenerative farmers as kind, cuddly progressive types took a hit when one of their own took…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter