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Bank pressure builds on farmers

Bank pressure builds on farmers

Field Notes, powered by KPMG, is a weekly news update on news nationally and globally from the agri-food sector.

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Ian Proudfoot

Global Head of Agribusiness, Partner - Audit

KPMG in New Zealand

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[29 November, Hugh Stringleman, Farmers Weekly]

The latest Federated Farmers survey has revealed that more farmers are feeling under pressure, with the number rising from 16 to 23 percent over a six month period. The number of farmers very satisfied or satisfied with their bank has also fallen marginally from 71 to 68 percent, which is anticipated to have occurred due to tougher borrowing conditions. The industry feeling most under pressure is arable, with 30 percent of farmers reporting so. It has been suggested that this is partly due to poor harvests and increased competition. The average overdraft is $10,000 less than when last surveyed in May. The all-farm mortgage amount increased over the six months to $3.83 million from $3.75 million. ‘’Dairy farms continue to hold the biggest mortgages, by a factor of two compared to meat and wool farms and by a factor of four compared with sharemilkers’’ claims the survey. For the surveyed farms, a third have mortgages with ANZ, 21 percent with Rabobank, 19 percent at BNZ, 14 percent with ASB and 10 percent at Westpac.

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