Banks Increase Funding To Support Farmers In Need

Banks are stepping up to fully fund the Farm Business Advice Fund for farmers who are under considerable business pressure, as well as continuing their sponsorship of the National Rural Support Trust.

The Farm Business Advice Fund was established in 2020 to provide up to $6,000 for farmers in need to obtain financial or business advice from an independent consultant. The fund is managed by the National Rural Support Trust.

The government, via the Ministry for Primary Industries (MPI), previously met half of the fund’s costs with the farmer’s relevant bank providing the other half. However, in December last year MPI made the decision to discontinue its funding. ANZ, ASB, BNZ, and Westpac are now stepping up to fully meet the fund’s costs.

Rabobank has confirmed it will continue with its original sponsorship of the Farm Business Advice Fund.

All five banks have also agreed to continue to provide the National Rural Support Trust with total sponsorship of $150,000 (plus GST) a year. The current funding agreement ends in November this year and will be rolled over for another three years.

National Rural Support Trust Chair Michelle Ruddell says: “Our struggling farmers and growers are going to directly benefit from the continuation of the Business Advice Fund. Thank you to the banks for recognising the importance of the Business Advice Fund, stepping up to fully fund it, and their continued sponsorship of Rural Support Trust.”

New Zealand Banking Association chief executive Roger Beaumont says: “Our banks know that some farmers are doing it tough in the current economic environment, so it made sense to fill the funding gap for the Farm Business Advice Fund, and to renew the annual sponsorship arrangement for the Rural Support Trust.”

For more information about the Farm Business Advice Fund, see https://www.nzba.org.nz/2020/02/25/new-fund-to-get-advice-for-struggling-farmers-is-now-open/.

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