Heat on banks

Reports are coming in of some South Island farmers being offered loans with interest rates of 5.7% and 5.8%. Just for context, most farmers are on interest rates over 8%.

Whether the banks are feeling the heat or it's just a public relations exercise remains to be seen.

Federated Farmers says the banks have a long way to go before they earn back the trust of farmers.

A Federated Farmers survey shows that farmers' satisfaction with their banks has dropped to its lowest levels since their surveys began in May 2015. Six years ago, around 80% of farmers were satisfied with their bank, but that number has since plummeted to just 51%.