NZ farmers say banks supportive
A survey by New Zealand's biggest rural lobby group, Federated Farmers, found only 6.6 per cent of dairy farmers felt under undue pressure from the their banks, despite most having to borrow heavily because of sustained losses. Federated Farmers said the survey showed banks were supporting farmers, pointing to just 3.1 per cent saying they were unhappy with the communication from their banks.Meanwhile, more than ten per cent of New Zealand dairy farmers have taken up Fonterra's offer of an interest free loan of 50 NZ cents per kilogram of milk in the first week of the offer, which closes on September 25. Fonterra is expected to lend farmers over NZ$400 million in the current financial year to May 31. The loans are interest free until May 31, 2017 and are expected to be repaid once the Fonterra payout rises above NZ$6/kg. Fonterra is forecasting NZ$3.85/kg for this season.