17 May 2024

Farmers feeling undue pressure from banks

From Nine To Noon, 9:25 am on 17 May 2024
Some of Fernhill's diary cows during feeding time.

Photo: Gianina Schwanecke / Country Life

Federated Farmers say intense banking pressure on farmers is taking a huge emotional toll - amid calls for an inquiry into the rural banking sector. 

Parliament's Primary Production Select Committee has called for submissions from farmers and other interest parties as it decides on whether a formal inquiry is warranted. 

In its submission, Federated Farmers dairy chair, Richard McIntyre says over the past five years there has been a steady and significant decline in communication, service and willingness to lend to farmers.

The NZ Bankers Association, which represents the major banks, says the increase in capital requirements were a significant factor in interest rates being higher for farm loans, than for residential mortgages.