Farm Debt Mediation A Useful Backstop - Federated Farmers

Published: Wed 1 Jul 2020 01:21 PM
The Farm Debt Mediation laws that take effect today [July 1] govern a scheme that farmers would hope never to have to use, but it’s a very useful backstop if a farm’s finances do go pear-shaped.
"We strongly supported this legislation as it was shaped and debated by the select committee and Parliamentary processes over the last year or so and we’re glad it’s now in place," Federated Farmers President and commerce spokesperson Andrew Hoggard says.
The Farm Debt Mediation Scheme requires creditors to offer mediation to farmers who default on payments before any enforcement actions kick in.
The Federated Farmers May 2020 Banking Survey showed more than 80 percent of farms carry a mortgage and overdraft, and while 69% percent of the 1400 farmers who responded were ‘satisfied’ or ‘very satisfied’ with their banks, 19 percent felt ‘under pressure’ from their banks, rising to 28 percent among arable farmers.
"It’s an uneven playing field in terms of available resources when a farmer and bank are in dispute. This legislation provides a platform for mediated communication," Andrew says.
"Although we hope it won’t have to be used very often, it will have done its job if it helps banks and farmers find enduring and sustainable solutions before it is too late."

Next in New Zealand politics

More Border Exceptions For Critical Roles
By: New Zealand Government
Watch: PM Jacinda Ardern announces decision on alert levels for Auckland, rest of New Zealand
Supporting Workers And Valuing Their Contribution
By: New Zealand Labour Party
PREFU Shows Economy Doing Better Than Forecast
By: New Zealand Government
Electoral Commission: Candidate And Party Lists Released
By: Electoral Commission
National Releases Its Plan To Restore NZ’s Prosperity
By: New Zealand National Party
New Zealand First Party List
By: New Zealand First Party
Arriving Travellers In Isolation To Be Able To Vote By Telephone
By: Electoral Commission
National To Invest In Our Children’s Future
By: New Zealand National Party
National’s Smart Border Plan Will Grow The Economy
By: New Zealand National Party
Seasonal Work Visa Available To More People
By: New Zealand Government
Covid Restrictions A Relief – But We Never Should Have Been Here
By: ACT New Zealand
Two Weeks Too Long In Level Two
By: Auckland Business Chamber
Mayor Phil Goff Welcomes Auckland’s Move To Level 2
By: Office of the Mayor of Auckland
Green Party Will Work Next Term With Labour To Implement Fair Pay Agreements And Extended Sick Leave
By: Green Party
View as: DESKTOP | MOBILE © Scoop Media