ANZ Bank New Zealand Limited
16 July 2014
ANZ announces farm flood assistance package
ANZ today announced an assistance package to help dairy farmers in flood-hit Northland meet short-term cash requirements and get their farms back to full production.
To meet the short-term needs of farmers, ANZ will offer a capped interest rate at 5.95% for the first 60 days on the additional seasonal limit. This compares to the usual base rate of 8.15%.
To get farms back to full production, ANZ would make $10 million in Pasture Productivity lending available to Northland dairy farmers to help them re-establish damaged pasture.
The loan was originally designed to ease the financial barriers to investing in pasture for red meat farmers. “Given the severe weather impacts in Northland in recent weeks, we will make it available to Northland dairy farmers for the first time,” said Graham Turley, ANZ Bank’s Managing Director Commercial & Agri.
The package offers an interest rate of 4.75%* p.a. (floating) with a maximum loan amount of $100,000. The maximum loan term is five years, principal reducing, and there are no establishment fees.
The Government yesterday declared a medium-scale adverse event for the primary sector in storm-hit Northland. Flooding is expected to have a serious impact on pasture on some farms heading into spring calving.
“Like any business that’s impacted by an unexpected and adverse event, the effects won’t just be felt locally, but right through the economy,” Mr Turley said.
“At the farm gate, the priority is to ensure that production resumes and pasture health is restored. We are offering farmers a package of options to help meet their short-term cash requirements and re-establish their farms to full performance.
“As New Zealand’s largest rural lender, we’ve been alongside our farm customers during good weather and bad for over a century.”
* Rate current at 16 July 2014. Interest rates are subject to change.