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

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>