Financiers urge farmers to work with them

Financiers urge farmers to work with them during drought

Waikato farmers are being urged to work with finance professionals to help ensure their properties can weather the short and long-term affects of the drought in the region.

At a meeting in Hamilton yesterday, the finance sub-committee of the Waikato Regional Drought Committee discussed the financial stress farmers were under now and the potential for ongoing problems as a result of the drought.

The sub-committee included banking and farming industry representatives, as well as councilors from Environment Waikato involved with the Rural Support Trust.

The discussions identified the impact that the drought was having on farmer’s financial positions and explored options that this group could identify to support farmers.

Finance sub-committee chairman Stuart Ewing, representing the ANZ and National Bank, said afterwards that all financiers at the meeting wanted to provide as much support as they realistically could, particularly when it came to ensuring stock had enough feed.

“There are a lot of farmers hurting out there and we know there’s potential for drought-related problems to continue, even after we get some decent rain.

“We encourage farmers to work closely with their banks and professional advisors on managing current problems and identifying potential future problems. Farmers should be looking to assess their cash flow requirements going forward and get advice on how their situation can best be managed under a range of scenarios.”

It was encouraging to see a higher Fonterra payout coming, but there would still be situations where farmers would require further support on a case by case basis, Mr Ewing said.

Members of the sub-committee will be helping build up a fuller picture of the Waikato drought’s financial impacts to help the Regional Drought Committee in its decisions on the best way to support local farmers and the local economy. Yesterday’s meeting heard anecdotal evidence of the impact of the drought on spending in rural towns.

“We all want to play our part in helping support the multi-agency response to the impacts of this drought,” said Mr Ewing.

“It’s in all of our interests to support Waikato farmers as much as we practically can, particularly given the vital role they play in the health of the regional economy.”

Besides talking to banks and financial advisors, any farmers with problems can call the Waikato Rural Support Trust on 0800 787 254.

ENDS

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