ANZ defends farm lending rates
The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
He says Feds’ regular banking surveys shows that farmer satisfaction with banks is at a record low, and the number of farmers coming under undue pressure is at a record high.
“Those statistics are a damning indictment on the state of rural lending in New Zealand, but unfortunately the issue goes much deeper than that.
“New Zealand’s banking regulations are now some of the harshest and most stringent in the world, and that’s adding huge costs for rural borrowers.”
Federated Farmers is calling for an inquiry into rural bank lending. In a submission to the primary production select committee, farmers urged the Government to initiate an inquiry.
McIntyre claims that new capital holding rules are now costing farmers more each year than He Waka Eke Noa was ever going to.
“It’s estimated these rules add between 0.5% and 1.2% to rural interest rates and cost farmers an eye-watering $310m to $740m each year.
“For comparison, He Waka Eke Noa was forecast to levy farmers around $255m each year.”
McIntyre hopes that the Government “have enough backbone to stand up to them and make it happen”.
Those rules are supposed to protect our banking system against a one in 200-year shock, but the question does need to be asked: could the medicine be worse than the disease?
You can trust that Federated Farmers have your back when it comes to banking issues, and we’ll keep fighting hard for this inquiry
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.
OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…
OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…