Latest news with #RichardMcIntyre
Scoop
6 days ago
- 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.
Scoop
20-05-2025
- Business
- Scoop
Government Must Deliver On KiwiSaver Promise For Young Farmers
Press Release – Federated Farmers Federated Farmers dairy chair Richard McIntyre says young farmers across the country are being held back by outdated rules that don't reflect the reality of farm ownership or rural employment. Federated Farmers is calling on the Government to deliver on National's pre-election promise to change KiwiSaver rules to help young farmers get their foot on the farming ladder. On the eve of the 2023 election National pledged that, if elected to Government, they would allow young farmers to use their KiwiSaver to buy their first home, farm, herd or flock. 'They made that campaign promise in Morrinsville, but 18 months later there has been no action,' says Federated Farmers dairy chair Richard McIntyre. 'The announcement was incredibly popular, particularly among the next generation of farmers, but also with older farmers who are looking for succession pathways. 'There are a lot of people out there waiting for these changes to be made, so it's important they follow through and deliver on their promise.' While National MP Suze Redmayne has since submitted a Members' Bill that would address some of the issues young farmers face, McIntyre says that isn't enough. 'It's great that Suze has put forward a bill – but it's one of more than 70 others in the Members' Ballot. It's effectively a raffle and the bill may never be drawn. 'That aside, having a Members' Bill in the biscuit tin doesn't even come close to delivering on their campaign promise. It needs to be picked up as a Government Bill. 'To make that happen, we need the Minister of Agriculture, and all rural MPs, to really get in behind farmers and push hard on this issue. They should be championing the cause.' McIntyre says young farmers across the country are being held back by outdated rules that don't reflect the reality of farm ownership or rural employment. 'These rules are holding young farmers back years in their career progression as they scrimp and save every dollar to get on the ladder, particularly for sharemilkers and contract milkers. 'I understand that KiwiSaver is about saving for retirement, but for these young farmers, owning a farm, herd or flock is going to be what sets them up for their later years. 'These are ambitious young people who are trying to build a future in farming, who just need the Government to get out of their way and allow them to access their own savings to invest in their future. 'A change in policy would give them a tangible pathway towards ownership and investment in agriculture – something the next generation of farmers desperately needs to see.' McIntyre says changing the rules would help level the playing field for young farmers and encourage greater use of KiwiSaver. 'A lot of young people in towns get into KiwiSaver because they know they can use it as a great way to build a deposit for their first house. 'In their early years, that's effectively what they're doing – not saving for their retirement. 'On the other hand, so many young farmers don't use KiwiSaver because they know they're not allowed to access that for their first home, farm, herd, or flock. 'They won't be able to use those savings until their retirement, whereas there are really important things they need to invest in early in their careers, long before retirement age. 'It's an unfair playing field and young farmers are missing out on a key step towards growing their long-term wealth.' Federated Farmers are strongly calling on the National-led Government to deliver on this campaign promise and show their support for the next generation of farmers.
Scoop
20-05-2025
- Business
- Scoop
Government Must Deliver On KiwiSaver Promise For Young Farmers
Press Release – Federated Farmers Federated Farmers dairy chair Richard McIntyre says young farmers across the country are being held back by outdated rules that don't reflect the reality of farm ownership or rural employment. Federated Farmers is calling on the Government to deliver on National's pre-election promise to change KiwiSaver rules to help young farmers get their foot on the farming ladder. On the eve of the 2023 election National pledged that, if elected to Government, they would allow young farmers to use their KiwiSaver to buy their first home, farm, herd or flock. 'They made that campaign promise in Morrinsville, but 18 months later there has been no action,' says Federated Farmers dairy chair Richard McIntyre. 'The announcement was incredibly popular, particularly among the next generation of farmers, but also with older farmers who are looking for succession pathways. 'There are a lot of people out there waiting for these changes to be made, so it's important they follow through and deliver on their promise.' While National MP Suze Redmayne has since submitted a Members' Bill that would address some of the issues young farmers face, McIntyre says that isn't enough. 'It's great that Suze has put forward a bill – but it's one of more than 70 others in the Members' Ballot. It's effectively a raffle and the bill may never be drawn. 'That aside, having a Members' Bill in the biscuit tin doesn't even come close to delivering on their campaign promise. It needs to be picked up as a Government Bill. 'To make that happen, we need the Minister of Agriculture, and all rural MPs, to really get in behind farmers and push hard on this issue. They should be championing the cause.' McIntyre says young farmers across the country are being held back by outdated rules that don't reflect the reality of farm ownership or rural employment. 'These rules are holding young farmers back years in their career progression as they scrimp and save every dollar to get on the ladder, particularly for sharemilkers and contract milkers. 'I understand that KiwiSaver is about saving for retirement, but for these young farmers, owning a farm, herd or flock is going to be what sets them up for their later years. 'These are ambitious young people who are trying to build a future in farming, who just need the Government to get out of their way and allow them to access their own savings to invest in their future. 'A change in policy would give them a tangible pathway towards ownership and investment in agriculture – something the next generation of farmers desperately needs to see.' McIntyre says changing the rules would help level the playing field for young farmers and encourage greater use of KiwiSaver. 'A lot of young people in towns get into KiwiSaver because they know they can use it as a great way to build a deposit for their first house. 'In their early years, that's effectively what they're doing – not saving for their retirement. 'On the other hand, so many young farmers don't use KiwiSaver because they know they're not allowed to access that for their first home, farm, herd, or flock. 'They won't be able to use those savings until their retirement, whereas there are really important things they need to invest in early in their careers, long before retirement age. 'It's an unfair playing field and young farmers are missing out on a key step towards growing their long-term wealth.' Federated Farmers are strongly calling on the National-led Government to deliver on this campaign promise and show their support for the next generation of farmers.
Scoop
19-05-2025
- Politics
- Scoop
Government Must Deliver On KiwiSaver Promise For Young Farmers
Federated Farmers is calling on the Government to deliver on National's pre-election promise to change KiwiSaver rules to help young farmers get their foot on the farming ladder. On the eve of the 2023 election National pledged that, if elected to Government, they would allow young farmers to use their KiwiSaver to buy their first home, farm, herd or flock. "They made that campaign promise in Morrinsville, but 18 months later there has been no action," says Federated Farmers dairy chair Richard McIntyre. "The announcement was incredibly popular, particularly among the next generation of farmers, but also with older farmers who are looking for succession pathways. "There are a lot of people out there waiting for these changes to be made, so it's important they follow through and deliver on their promise." While National MP Suze Redmayne has since submitted a Members' Bill that would address some of the issues young farmers face, McIntyre says that isn't enough. "It's great that Suze has put forward a bill - but it's one of more than 70 others in the Members' Ballot. It's effectively a raffle and the bill may never be drawn. "That aside, having a Members' Bill in the biscuit tin doesn't even come close to delivering on their campaign promise. It needs to be picked up as a Government Bill. "To make that happen, we need the Minister of Agriculture, and all rural MPs, to really get in behind farmers and push hard on this issue. They should be championing the cause." McIntyre says young farmers across the country are being held back by outdated rules that don't reflect the reality of farm ownership or rural employment. "These rules are holding young farmers back years in their career progression as they scrimp and save every dollar to get on the ladder, particularly for sharemilkers and contract milkers. "I understand that KiwiSaver is about saving for retirement, but for these young farmers, owning a farm, herd or flock is going to be what sets them up for their later years. "These are ambitious young people who are trying to build a future in farming, who just need the Government to get out of their way and allow them to access their own savings to invest in their future. "A change in policy would give them a tangible pathway towards ownership and investment in agriculture - something the next generation of farmers desperately needs to see." McIntyre says changing the rules would help level the playing field for young farmers and encourage greater use of KiwiSaver. "A lot of young people in towns get into KiwiSaver because they know they can use it as a great way to build a deposit for their first house. "In their early years, that's effectively what they're doing - not saving for their retirement. "On the other hand, so many young farmers don't use KiwiSaver because they know they're not allowed to access that for their first home, farm, herd, or flock. "They won't be able to use those savings until their retirement, whereas there are really important things they need to invest in early in their careers, long before retirement age. "It's an unfair playing field and young farmers are missing out on a key step towards growing their long-term wealth." Federated Farmers are strongly calling on the National-led Government to deliver on this campaign promise and show their support for the next generation of farmers.
