Latest news with #FederatedFarmers'
Scoop
02-06-2025
- Business
- Scoop
Farmer Satisfaction With Banks Better
Farmers are feeling more satisfied with their banks, pointing to improved communication and less 'undue pressure', Federated Farmers' latest Banking Survey shows. "It's good to see things are improving but farmers' trust in their banks is still fragile," Federated Farmers banking spokesperson Richard McIntyre says. "Where farmers have given positive feedback in the survey, it's usually about their individual managers, not bank policy. "When those individual staff leave, that trust can erode quickly." Nearly 700 farmers responded to the May survey, with 60% of them 'satisfied' or 'very satisfied' with their bank. That's up from 53% in Federated Farmers' November 2024 survey but well shy of the 80% peak rating recorded in 2017. "It's helped that over the last year banks have been grilled by the select committee inquiry on banking competition that Federated Farmers pushed for," McIntyre says. "There has been a lot of scrutiny and banks have definitely been feeling the pressure, so it's good to see them start to lift their game as a result." In the survey, 61% of farmers rated their bank's communication as good or very good - the best result since 2020. Just on 18% of farmers said they were feeling undue bank pressure, down from 24% six months earlier and the lowest rating recorded since 2018. "Many farmers said bank pressure has eased over the past six to 12 months, with some noting their bank had become more understanding or backed off earlier demands," McIntyre says. "However, for those still under pressure, the situation remains serious. "A few farmers shared difficult stories with us, including being forced out of farming altogether." One farmer said: "We've sold the farm. If the bank had been more understanding, things might have been different." The survey shows interest rates on farm mortgages have also eased by about 1% since late 2024 to an average of 6.52%. "Even so, we're still very concerned that, compared with average residential mortgage interest rates, farm mortgage interest rates are around 0.92% higher - and were about 1.12% higher late last year," McIntyre says. From 2016 until 2021, the margin of difference hovered between about 0.6% and 0.35%. "These don't seem like big differences, but when total agricultural lending is around $61 billion, a 1% margin difference puts $600 million of extra interest costs on the sector each year. "It's crazy how much more money farmers are having to shell out to the banks in interest payments. "Part of the problem is the unnecessarily conservative Reserve Bank capital requirements, and the recent decision to review those settings is very welcome," McIntyre says. "What we desperately need as well is stronger competition among banks in the rural sector. That would really help lower costs for farmers and drive better bank performance." In the open comment section of the May survey, many farmers said they were still paying far too much in interest. Several expressed frustration that banks were quick to hike rates, but slow to pass on savings when the OCR falls. "OCR drops come through like a feather. Increases hit like a brick," one said. The May survey also found that just under 20% of farmers said their bank has inquired about their farm's emissions profile or environmental footprint as part of loan requirements. Westpac and ASB were much more likely to ask such questions, at 32% and 40% respectively. "Federated Farmers' view is that our democratically elected Government is the correct body to be setting emissions and environmental policy, not banks," McIntyre says. "Farmers are closely watching what's happening with Bills passing through Parliament, promoted by MPs Andy Foster and Mark Cameron, that would rein in banks' ability to make lending decisions on non-commercial grounds." Foster's proposed law would prohibit banks from refusing loans or services purely for environmental or emissions reasons. May survey responses show 70% of farmers support such a law (18% oppose, 12% unsure). Other key findings from the survey: Farm Debt Levels: 84% of farmers surveyed have a mortgage. The average mortgage in the survey was $4.7 million, compared to $4.4 million six months ago. Overdraft Use Declining: Only 76% of farms now have an overdraft facility, down from 88% a decade ago. Overdraft Limits: Average overdraft limits have risen to $349,000. Arable farms saw the largest increase (from $500k to $718k). Overdraft Interest Rates: Rates have dropped. The average is now 9.0%, down from 10.0%. Rabobank offers the lowest (7.3%), while BNZ remains highest (9.7%). Efficiency Concerns: 19% of farmers feel their bank isn't allowing them to structure debt as efficiently as possible - down slightly from 23% in November. Rabobank and ANZ performed best; Westpac performed worst.
NZ Herald
26-05-2025
- Entertainment
- NZ Herald
Listen to The Country online: Save Our Sheep with Federated Farmers' Toby Williams
Today on The Country radio show, host Jamie Mackay catches up with Federated Farmers' meat and wool chairman Tobu Williams to talk about a new campaign called Save Our Sheep, aimed at halting the collapse of New Zealand's sheep industry. Also, be in to win a Stihl MZ182 chainsaw. On with the show: Toby Williams: Federated Farmers' meat and wool chairman launches a new campaign, SOS: Save Our Sheep, calling for urgent action to halt the collapse of New Zealand's sheep industry.
NZ Herald
05-05-2025
- Politics
- NZ Herald
Free talk brings minor accord on Taranaki water pollution
The local herd stands at 450,000, suggesting effluent from some 90,000 cows can flow into streams and rivers after milking – although half those farms also have permission to discharge to land. The council's powerful Policy and Planning Committee is deciding how quickly farmers must stop polluting freshwater when their resource consents expire. Farmer-lobby committee members mostly want a grace period for those facing looming expiry of consents, or where geographical or financial challenges make land discharge difficult. Māori members want an immediate halt to tūtae flowing into awa and downstream to the moana, once consents expire. The committee suspended standing orders at its meeting last week so people could speak more than once. Rather than trying to win each debate with their sole speech, committee members instead had a more free-flowing discussion that led to a unanimous consensus. All agreed to pause the pollution decision so staff could bring more facts on problem farms to the next meeting in six weeks. They hope the extra information will help the committee's regional councillors, district councillor appointees, waka representatives and Federated Farmers' local president agree on final deadlines. New committee chairwoman Bonita Bigham said free and frank discussion saw strongly-held views clearly articulated. 'To put those views on the table while also considering the perspectives of others, and not having to retrench back to a firm position to vote, I think is a really healthy way forward.' Kurahaupō waka representative Tuhi-Ao Bailey pointed out that farmers use public waterways for private business benefit. She said Te Mana o te Wai priorities required that commercial needs came third – after the needs of the environment and of communities. 'Mana whenua are sick and tired of waiting for this to end. We've been debating this for years, decades.' For Aotea waka, Peter Moeahu said the focus was environmental improvement, not the business interests of a minority of farmers who had chosen to take as long as possible to change. 'The more we delay, the more we defer, the more we take our eye off the environmental ball – then we are not doing justice to our communities as a whole.' Tokomaru's Mitchell Ritai completed the unanimous Māori stand against extending consents, congratulating the 80% of farmers whose work set a benchmark for laggards. Farmer-lobby councillors differed on how long and lenient any consent extensions ought to be. Councillor Donna Cram wanted to wait for Massey University research findings on whether slightly steeper slopes could cope with cowshed waste, potentially meaning more land was available for discharge. For example, high on the ring plain around Taranaki Maunga, massive rainfall soaks the ground then drains into multiple fast-running streams, leaving paddocks often unable to absorb waste. 'We should give farmers a chance to get this research because it could save them considerable money,' she said. 'We're talking $500,000 or $600,000 for some of these systems – it's not chicken feed.' Poultry shed and piggery systems also discharge to Taranaki waterways, but they are a tiny minority compared to the hundreds of dairy farms. Veteran councillor Donald McIntyre was fed up with fellow farmers dragging their heels and said consents should not be extended. 'They should just phase-out now as they come to the end of their [consents],' he said. 'They have had plenty of warning.' Staff warned that a strict pollution deadline would expose a council unable to handle the surge of consent applications. The rush might also inflate the market for building costly discharge-to-land systems, they advised. Bigham is the council's first elected Māori constituency councillor. She chaired what she afterwards described as a more natural debate, with similar benefits to the fluidity of wānanga discussion. 'The statements of position, the discussion around why, the opportunity for added information, the opportunity for reassessment of those positions – or clarification of how further work may enable us to make better decisions. 'That all came up, that was all free-flowing, all open. 'It left me really heartened that people were able to see the benefits of having a discussion like that and move forward collectively, even if at the end of the day they may still hold the same positions.'
