Farmers pressured by low prices, are least happy with banks 30 May 2016
Article - BusinessDeskMonday 30 May 2016 03:05 PM
NZ sharemilking farmers,
pressured by low prices, are least happy with their bank,
survey shows
By Tina Morrison
May 30 (BusinessDesk) - New Zealand's sharemilking farmers, feeling the pain from low milk prices, are the least happy with their banking relationships at the moment, according to the latest quarterly Federated Farmers Banking Survey.
The survey shows that while 81 percent of all farmers said they were either "very satisfied" or "satisfied" with their bank, sharemilking farmers lagged behind with a 70 percent satisfaction rating.
Sharemilkers are the most likely to feel they are coming under "undue pressure" from their bank regarding their mortgage, with 22 percent saying they were feeling the pressure, compared with 13 percent of dairy farmers and 9.7 percent of all farms. While farmers overall were positive about the quality of bank communication regarding their mortgage, with 78 percent rating it "excellent" or "good", sharemilkers' satisfaction rating lagged behind the average at 73 percent.
The country's dairy industry is under pressure as farmers head into a third season of low milk prices, below the level needed by most farmers to break even. Sharemilkers, who generally work on someone else's farm for a share of the profits, and own cows rather than land, are more exposed to volatile prices and likely to lean on their bank overdraft.
Sharemilkers were the most likely to have an overdraft, with a reading of 93 percent compared with 88 percent for all farms and 91 percent of dairy farms, and the average overdraft interest rate was the highest at 8.09 percent, compared with 7.59 percent for all farms and 7.63 percent for dairy farms. However their average overdraft limit was lower at $156,300, compared with $240,700 for all farms and $251,900 for dairy farms.
Similar to the sentiment for mortgages, sharemilkers were also the most likely to feel they are coming under "undue pressure" from their banks regarding their overdrafts, with 20 percent saying they were feeling the pressure, compared with 10 percent of dairy farmers and 7.3 percent of all farms. They were also less happy with the quality of bank communication about their overdraft, with 62 percent rating it "excellent" or "good", lagging behind the average 74 percent for all farms.
Federated Farmers dairy chairman Andrew Hoggard said that while farmers overall remain satisfied with their banks, pressure is building and sharemilkers are feeling it the most, which was no surprise given the current environment. He noted that sheep, beef and arable farmers weren't reporting nearly the extent of bank pressure and experienced little change in quarterly movement.
New Zealand Bankers' Association chief executive Karen Scott-Howman said banks remain committed to supporting their farming customers, and encouraged farmers to talk with their banks early and often about budget planning, managing cashflow and any assistance that may be available.
The survey of 910 farmers across dairy, sheep, beef, lamb, and other sectors was taken between May 6-16.
(BusinessDesk)
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more