Financial Pressure

Feeling the pinch?

Finance plays an essential role in every business, including the food and fibre sector. Related to this are matters such as debt management, tax management and business structures.

Usually you can see a way ahead when 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.

Below is information about some assistance we may be able to help you tap into.

Funding to get advice for struggling farmers

Farm Business Advice Support Fund

This is an initiative funded by banks and the government offering support for farmers and growers struggling with business debt. 

The government originally allocated $200,000 for the Farm Business Advice Support Fund which is managed by Rural Support Trusts and this has been increased by a further $149,000 for farmers around the country with an additional pool of $200,000 to specifically assist those in the North Island regions impacted by the flooding events in 2023. 

For a qualifying farmer or grower, 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 signed the agreement for the Fund back in 2020. Under the agreement, the Rural Support Trusts will provide up to $3,000, 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 or grower who is feeling pressure.  “The hope is that there may still be options available so that the wishes of all parties can form a solution for going forward and the banks came on board recognising it’s in everyone’s best interests to have an opportunity to work through solutions.”

Rural Support Trusts take an application from, or on behalf of, a farmer or grower who might qualify for assistance. Both the bank and farmer or grower will agree on the expert instructed to provide assistance and the terms of reference for the work. 

The consultant will provide a report, which will be given to the farmer or grower and their bank. 

This initiative involves ASB, ANZ, BNZ, Heartland Bank, Rabobank, SBS Bank, TSB and Westpac. 

If you would like to know more or wish to apply please contact your local Rural Support Trust on 0800 787 254.

Farm Debt Mediation Scheme and Hardship Fund 

The Farm Debt Mediation Act was passed into law on 13 December 2019, and the Scheme – with an associated hardship fund became operational on 1 July 2020. 

Under the Farm Debt Mediation Act 2019, secured creditors must offer mediation before taking any debt enforcement action against farmers or eligible primary production businesses. 

The scheme uses neutral and independent mediators to help farmers and their creditors work through debt issues. The aim is to provide a negotiation process that is:

  • Structured
  • Confidential
  • Impartial

This will help farmers and creditors agree on how to proceed. MPI administers, promotes and monitors the scheme. The Mediation Hardship Fund helps farmers who want to use the Farm Debt Mediation Scheme but can't afford the cost.  Farmers in extreme hardship can apply to have their mediation paid for by MPI.  You can find more information on the Farm Debt Mediation Scheme and Mediation Hardship Fund on their website.


Check out some useful links and articles about dealing with financial pressure:

B+LNZ - Computing for Farmers - Using Farm Data Workbook

B+LNZ - Computing for Farmers - Using Farm Data Workbook

This workbook has been updated following the completion of the RMPP (Red Meat Profit Partnership) and is designedto be used in a workshop setting, however, is suitable for one-on-one use for...
October 4, 2023 0 Comments
Dairy Women's Network - Navigating Dairy's New Landscape: 7 Steps to Surviving the Payout Challenge

Dairy Women's Network - Navigating Dairy's New Landscape: 7 Steps to Surviving the Payout Challenge

The dairy industry has been under immense pressure over the last 18 months and has faced challenges on many fronts including compliance and increased costs such as feed, fertilizer and...
September 20, 2023 0 Comments
Funding to get advice for struggling farmers

Funding to get advice for struggling farmers

This is an initiative funded by banks and the government offering support for farmers and growers struggling with business debt. 

August 11, 2023 0 Comments
Drop in Milk Payout an unwelcome start to the new season

Drop in Milk Payout an unwelcome start to the new season

The announcement late last week of the expected drop in milk payout was disappointing news for dairy farmers already busy with calving and now adding reviewing budgets to the long list of things...
August 9, 2023 0 Comments
Rural Support you can trust when under stress

Rural Support you can trust when under stress

Changes in physical appearance, changes in mood or changes in behaviour are key signs the Rural Support Trust says to look out for if someone is under stress.  “Watch out for signs...
August 9, 2023 0 Comments
Cyclone Gabrielle Recovery - advice, support, and funding from MPI

Cyclone Gabrielle Recovery - advice, support, and funding from MPI

A new package of financial support announced by the Government on 29 June is now available for businesses, orchards, and farms affected by the North Island weather events in early...
August 1, 2023 0 Comments
Feed for Thought Podcast by Pioneer

Feed for Thought Podcast by Pioneer

Welcome to Feed for Thought, a regular podcast hosted by Pioneer® Farm Systems Specialists Ian Williams, Wade Bell and Matt Dalley.  Episode 13: Mental Health with Rural Support Trust
July 6, 2023 0 Comments
Support package for growers, farmers and businesses affected by North Island weather events

Support package for growers, farmers and businesses affected by North Island weather events

The package will be available to businesses in Northland, Auckland, Waikato, Bay of Plenty, Tairāwhiti, Hawke's Bay, Tararua, and Wairarapa. 

July 4, 2023 0 Comments
Insurance Advice from FMG post Cyclone Gabrielle

Insurance Advice from FMG post Cyclone Gabrielle

FMG know many people are beginning to turn their heads to assessing damage and making a claim.

To help they have provided some advice.

February 16, 2023 0 Comments
Invest in your Wellbeing Bank Account for 2023

Invest in your Wellbeing Bank Account for 2023

This time of the year is a great time to think about how you could improve your investments into your 'Wellbeing Bank Account' for 2023.

January 13, 2023 0 Comments
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