Don’t be a slave to your debt
OPINION: Clicking through some news of late, I have noted the odd headline referring to credit card debt.
The Minister of Agriculture has entered the debate on the actions of the banks labelling them as fair-weather friends.
A new report by the Ministry for Primary Industries reveals that more than a quarter of NZ’s dairy farmers have debt to equity ratios of more than 70%. Some have as little as 4% equity in their properties.
The report also reveals that the average debt per hectare on dairy farms is now three times what it was 20 years ago. Read more here.
Minister of Agriculture Damien O’Connor says the debt levels in the dairy industry have been rising for a long time.
He claims that six years ago the banks indicated they wished to reduce their exposure to agriculture. But were unable to because of low prices in the sector and were forced to back farmers.
O’Connor says in the present crisis, banks need to share some of the responsibility for what’s happened.
“They need to take a partnership approach to the solution and not put all the pressure on farmers. It’s an outrageous excuse on the part of the banks for them to complain about the Reserve Bank asking them to hold a bit more equity in their business – while at the same time creating this pressure on farmers to do the same thing,” he says.
O’Connor says the partnership deal which farms had with the banks must continue but it must be a fair partnership.
OPINION: Ministry for Primary Industries' situation outlook for primary industries report (SOPI) makes impressive reading.
Sheep and beef farmers Matt and Kristin Churchward say using artificial intelligence (AI) to spread fertiliser on their sprawling 630ha farm is a game changer for their business.
Commercial fruit and vegetable growers are being encouraged to cast their votes in the Horticulture New Zealand (HortNZ) board directors' election.
A unique discovery by a Palmerston North science company, Biolumic, looks set to revolutionise the value and potential of ryegrass and the secret is the application of ultraviolet (UV) light.
A New Zealand company is redefining the global collagen game by turning New Zealand sheepskin into a world-class health product.
With further extreme weather on the way, ANZ Bank is encouraging farmers and business owners impacted by the recent extreme weather and flooding to seek support if they need it.
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