Wednesday, 01 July 2020 13:22

Scheme for financially distressed farmers

Written by  Staff Reporters
Total farm debt in NZ is up 270% on 20 years ago. Total farm debt in NZ is up 270% on 20 years ago.

A debt mediation scheme to help farmers in financial distress deal with their lenders starts today.

The Farm Debt Mediation Scheme will require creditors to offer mediation to farmers who default on payments before they take any enforcement action, says Agriculture Minister Damien O’Connor.

“Total farm debt in NZ is $62.8 billion – up 270% on 20 years ago. Farmers are especially vulnerable to business down-turns as a result of conditions that are often outside their control, like weather, market price volatility and diseases like Mycoplasma bovis and Covid-19,’’ says O’Connor.  

“Farmers who operate a family business often don’t have the resources to negotiate their own protections when dealing with lenders. That’s where this scheme fits in – it supports the mental, emotional and financial wellbeing of farmers and farming families who find themselves in financial trouble.

“The scheme is about early intervention – where either the farmer or the bank have an ability to go and seek mediation, which is a far better option than forced foreclosure,” says O’Connor.

Two Approved Mediation Organisations, The Arbitrators and Mediators Institute of New Zealand (AMINZ) and Resolution Institute (RI) have been appointed to deliver the scheme.

Farmers wishing to access the scheme should visit the MPI website.

More like this

Labour Supports NZ/India FTA

National's decision to ‘dribble’ information about the NZ/India to Labour contributed to the delay in it deciding to supported the FTA.

Feds support live animal exports

Federated Farmers have reiterated their support for the coalition Government to abolish the present ban on the live export of animals.

Featured

NZ Pest Crisis Costs Farmers $466M a Year — Survey

New Zealand's pest problem has reached crisis point, according to Federated Farmers' second National Pests Survey, which shows farmers are spending more money and effort on control — yet pest numbers keep climbing faster than they were two years ago.

Third H5 Bird Flu Case Found in NZ Wild Bird

Testing confirms H5 bird flu in a single northern giant petrel, found dead on a remote Cape Palliser beach in the Wairarapa, says Dr Mary van Andel, the Ministry for Primary Industries' (MPI) Chief Veterinary Officer.

National

Machinery & Products

» Latest Print Issues Online

The Hound

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…

UK Warning

OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter