Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bank of NZ offers 6% overdrafts for drought-hit farmers

Bank of NZ offers 6% overdrafts for drought-hit farmers

March 5 (BusinessDesk) – Bank of New Zealand has announced a 6 percent overdraft facility up to $100,000 for farmers affected by drought.

Economists are gauging the impact of dry conditions in the North Island, which are driving up feed costs, curbing milk production and are likely to be a brake on economic growth this year.

The bank’s head of Agribusiness Richard Bowman said the deal is on offer to all of its agri-customers suffering from dry weather. It is also offering $10,000 in emergency family funding. That's down from a base rate of 9.8 percent.

The government declared drought in Northland and said Waikato and the Hawkes Bay may follow.

“Right now farmers need fast access to funds as they’re coming under enormous pressure with the challenge of feeding their stock,” Bowman said in a statement. “This could result in increased feed costs, reduced production and reduced stock prices as they off-load surplus stock, placing further strain on cash flows.”

He said because drought conditions were widespread in the North Island farmers may have more difficulty obtaining supplies of supplementary feed. Against that, the dry conditions have emerged later in the season than previous droughts, meaning pasture would recover if there’s meaningful rain in the near term.

BNZ’s relief package is initially on offer for six months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news