No Govt Help For Dairy Farmers

19 February 2016

For Immediate Release

No Govt Help For Dairy Farmers

Weekly agricultural report The Main Report Farming Alert says for those calling on the Govt to prop up the dairy industry during the current slump in export prices, Finance Minister Bill English has a blunt answer - “The Govt does not intend to initiate financial support for dairy farmers under pressure.” This was his response in Parliament when questioned by Labour’s Grant Robertson whether he had sought assurances from banks in NZ about their approach to debt in light of projections of a third year below break-even payout and Federated Farmers saying one in 10 farmers are facing pressure from their bank.

The Main Report Farming Alert says English conceded there will be some farmers with very high debt levels who will be under pressure, “unsurprisingly” from their banks, and there are ongoing discussions with the banks by Treasury, the Reserve Bank, the Primary Industries Minister and himself, “but I think we need to keep in mind here that although prices have dropped further, and look like they will stay low longer than was expected, this is an industry that has a very positive long-term view about its prospects, which is reflected, for instance, in the current land prices, and it also has pretty solid balance sheets that can absorb losses - hopefully, not for three years but certainly for two years”

English says for those farmers in extreme circumstances, there are the various rural-based organisations, the rural support trusts around the country who are well organised and very attuned to the ongoing mood in the farming community. “But the Govt does not intend to initiate financial support for dairy farmers under pressure.”

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