Federated Farmers banking spokesperson Mark Hooper says agricultural debt fell $1.44 billion over the March to April period, at least $1 billion more than the usual seasonal drop.

The fall reflects strong cash flows, the Fonterra capital redistribution and firm beef prices, with farmers choosing to pay down debt.

“Dairy lending is down 5 billion compared to what it was at its peak a few years ago,” he says.

Total agricultural debt rose by about $960 million over May and June, which Hooper says indicates increased dairy investment in infrastructure and machinery rather than winter overdrafts.

He says councils are also rushing hapū agreements before Resource Management Act reforms, with Environment Canterbury giving farmers only a week to comment.

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