Top Performing Farms Thrive Despite 27% Increase in Operating Costs
The cost of running a New Zealand farm is now 27% higher than it was before Covid, putting sustained pressure on profitability acrfoss the sector, according to new ANZ research.
Lorraine Mapu, ANZ managing director of business and agri, says the recent storm caused widespread damage across the region, with power outages, flooding and loss of critical infrastructure impacting the day-to-day running of farms and businesses.
"We've got staff out in the community and on the road, talking to business owners and visiting farmers in some of the worse affected areas, to get a better idea of the extent of the damage," Mapu says.
"For our farmers, the welfare of their animals is a priority, they are facing significant challenges with cows not being milked for prolonged periods, damage to fencing, sheds, machinery and water systems."
“We want to reassure our customers that the bank is here to work with them in the days and months ahead.”
ANZ is making targeted assistance available for business and farming customers, subject to approval.
This includes temporary overdraft facilities and the ability to defer loan repayments or moving to interest only, to help ease some financial pressure.
Agri customers may also be able to access ANZ’s low interest Business Regrowth loan.
Eligible customers can borrow up to $300,000 at a special fixed rate of 3.49% p.a. for three years. The loan can be used to replace assets and rebuild for the future.
Business and Agri customers should speak to their Relationship Manager or phone our Business Service centre on 0800 269 249 to discuss the impact on their business and their funding requirements.
ANZ is recommending farmers and business owners talk with their key industry specialists and professional advisors to work out the best way forward.
“We know significant weather events have a huge impact on our customers and regional economies,” Mapu says.
“As New Zealand’s biggest bank we’re committed to supporting our business and agri customers with their recovery, ultimately leading to more resilient and sustainable communities.”
