BNZ has launched a First Farm Funding Boost to help new farm buyers through the financial pressure of early ownership.
Penny Ford, Executive for Corporate & Institutional Banking at BNZ says it is a support package for those getting into their first farm.
“Something that’s often talked about in the sector is how do you ensure that you’ve got capability continuing to come through?”
The Funding Boost provides up to $250,000 in working capital at 2.99% for six months, BNZ says, and is available to eligible first farm buyers, first-time 50/50 sharemilkers, and those entering via eligible equity partnerships. Ford says an eligible buyer borrowing more than $2 million could reduce borrowing costs by more than $40,000 over the first two seasons.
“It’s always challenging in those first couple of years, cashflow can be quite tight.
“The package gives a bit of a relief on interest rates over those periods, so 1% discount on the first two years for two year, up to two million dollar loan, and then some relief as well on working capital, just to help you get through those first couple of years where it’s tougher.”
Ford says the package also includes a mentorship component to help kickstart their first couple of years.
“The whole origination of this was from a lot of our strong, experienced customers saying they really want to help the next generation get in, and how can their experience help aid that?”
The timing is good for those looking to enter farming, with positive cashflow across the sector.
“Our farmers and growers are some of the best business people across New Zealand.
“I’m always super impressed when we’re out on farm at seeing the precision farming or growing that is going on, the use of data, and how they’re using that to set the businesses up for really long-term success.”
Ford says she sees a bright future for farming across New Zealand.
“We know that proteins, fresh fruit, and vegetables are going to be in demand well into the future.”
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