Feeling the pinch?
Finance plays an essential role in every business, including farming, growing or agri-business. Related to this are matters such as debt management, tax management and business structures.
Usually you can see a way ahead and you are working with your accountant and bank.
But sometimes you feel financially stuck. You may want to discuss this with someone and we’re here to help.
Also, following is information about some assistance we may be able to help you tap into.
New fund to get advice for struggling farmers is now open
Joint statement by the National Council of Rural Support Trusts and New Zealand Bankers’ Association, 25 February 2020
A new initiative funded by banks and the government offering support for farmers struggling with farm debt is now up and running.
The government has allocated $200,000 for the Farm Business Advice Support Fund, to be managed by Rural Support Trusts.
For a qualifying farmer the Fund will provide up to $6,000 to pay for financial or business advice from an independent consultant.
The National Council of Rural Support Trusts and New Zealand Bankers’ Association have recently signed the agreement for the Fund. Under the agreement, the RSTs will provide up to $3000, depending on an assessment of need, and the relevant bank will match that dollar for dollar.
RST National Council chair Neil Bateup says the fund is for a farmer who is feeling pressure. “This might be because there’s been some change or their bank has indicated they need to discuss their debt situation. The hope is that there may still be options available so that the wishes of all parties can form a solution for going forward.”
“There’s a recognition it’s in everyone’s best interest for a farmer to have up-to-date business and financial plans,” says New Zealand Bankers’ Association chief executive Roger Beaumont. “This will inform conversations between the farmer and their bank.”
Rural Support Trusts will take an application from, or on behalf of, a farmer who might qualify for assistance.
The consultant will provide a report, which will be given to the farmer and their bank.
This initiative involves ASB, ANZ, BNZ, Heartland Bank, Rabobank, SBS Bank, TSB and Westpac.
Farm Debt Mediation Scheme and Hardship Fund – from 1 July 2020
The Farm Debt Mediation Act was passed into law on 13 December 2019, and the Scheme – with an associated hardship fund will become operational on 1 July 2020.