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.
