The Hound notes that one of the country’s poorest financially performing state-owned enterprises – the Government farming entity Landcorp (or…
Banks may increasingly lose patience with farms with very high cost structures and very high debt burdens, warns Chris Bloor, financial systems analyst at the Reserve Bank of New Zealand.
Market commentators are indicating with 80% certainty the Reserve Bank of New Zealand will lower the official cash rate by 25 basis points next month and then it will begin to stabilise.
NZ's financial system is resilient and functions effectively, but risks to the financial stability outlook have increased further in the past six months.
Federated Farmers has welcomed the Reserve Bank's decision to cut the Official Cash Rate by 25 basis points to 2.25%.
Cashflow pressures on dairy farmers are expected to rise in the 2015-16 season, with about 80% of farmers - representing almost 90% of sectoral debt - expected to have negative cash flow, says the Reserve Bank.