Friday, 17 May 2024 15:04

Feds make case for rural bank lending probe

Written by  Sudesh Kissun
Federated Farmers vice president Richard McIntyre. Federated Farmers vice president Richard McIntyre.

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

More like this

Meat sector unity

Farmers are welcoming potential collaboration between the country's two major meat processors.

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

National

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter