BNZ’s new First Farm Funding Boost gives eligible first farm buyers up to a 1% interest rate discount on their first $2 million of borrowing for two seasons, alongside up to $250,000 in working capital at 2.99% for six months.

Under the scheme, an eligible first farm buyer borrowing more than $2 million could reduce borrowing costs by up to $40,000 over their first two seasons.

The offer is available to eligible farmers and growers purchasing their first farm, first-time 50/50 sharemilkers, and first-time farm owners entering via eligible equity partnerships.

Dan Cummings, Sector Head – Agribusiness at BNZ, says it builds on the bank’s First Farm initiative, launched last year in the dairy sector to support aspiring farmers into first herd or first farm ownership. He says the leadership team set out a year ago to identify where the banking sector falls short of meeting the needs of the next generation.

“If we were to not only continue to be at the forefront, but actually really double down and truly lead and innovate, it’s hugely reliant on the continued supply of young people into farming and farm ownership,” he says.

“That’s something really important to us is that they don’t just get stuck at that operational leadership level, but actually get into a position to get their name on a title, where they can really stamp their mark.”

He says the mentorship side of First Farm remains dairy-focused, supporting first-time dairy farm owners and first-time 50/50 sharemilkers.

“For those people that have shown all the right qualities – financial discipline, relationship management, and are operationally really sound – we’re giving them the ability to take that next step, perhaps before they otherwise could have through reduced deposit requirements.”

He says BNZ pairs each mentorship participant with an existing, operationally excellent client as a mentor.

“One thing every pairing has is someone on the end of a telephone who’s probably ‘been there and done it’ twice.”

He says success in five years is less about what the initiatives look like and more about what they have done for BNZ’s customers and the sector.

“Success for us is: buying your first farm feels more achievable.

“If we can help hundreds upon hundreds of first-time farm owners into their first farm, then that would be success for us – not just success, but it is actually our obligation to do so.”

For over 160 years, BNZ’s Agribusiness Partners have worked alongside farmers, bringing the expertise to support them through the seasons. To see how that support can work for you, speak to your local partner. Search BNZ Agribusiness.

This article is solely for information purposes. It’s not financial or other professional advice. For help, please contact BNZ or your professional adviser. Opinions expressed are those of the speakers and not necessarily of BNZ. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this podcast. 

Eligibility and lending criteria, T&Cs and fees apply. Deposit requirements assessed individually. First Farm Mentorship open to first dairy farm or herd owners only and has limited availability. 

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.