Helping Farmers as Receivership Threatens

New Zealand First has lodged a Bill to help farmers facing financial strain stay out of receivership.

“Our farmers are world beaters but carry huge debt, says New Zealand First List Member of Parliament Ron Mark, who lives in Wairarapa.

“The Reserve Bank’s Financial Stability report reveals that about 1,200 dairy farmers owe nearly $10 billion.

“Farming is a complex business and, as the Reserve Bank highlights, ‘10 per cent of [dairy] farms accounted for around one-third of total sectoral debt’.

“At present many farmers and sharemilkers with watchlist loans are under stress, that’s why New Zealand First haslodged the Receiverships (Agricultural Debt Mediation) Amendment Bill.

“Dairy prices are down with no signs of immediate recovery as the Russia/Ukraine stand-off displaces billions of litres of European milk. Lamb schedules have tracked down while parts of New Zealand continue to struggle with drought, especially Canterbury.

“Our Bill will require independent debt mediation before a receivership can start. We hope mediation will bring an agreement on the debt and the financial relationship between farmers and creditors.

“The Bill places obligations on the Banking Ombudsman Scheme to administer Agricultural Debt Mediation. Our Bill will also remove any financial limit for scheme compensation.

“The need for this was proved by the successful Commerce Commission interest rate swaps investigation, which only landed ANZ, Westpac and ASB with small financial penalties relative to what it cost affected farmers.

“In 1999, when former New Zealand First MP Doug Woolerton’s Farm Debt Mediation Bill was read, agricultural debt was $11.7b. Today, it is $54b.

“So we don’t wish to burn a generation of farmers and our Bill is the least we can do as parliamentarians,” says Mr Mark.

ENDS

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