COMMENT:

Will Farmageddon flow from the Reserve Bank's plans to require some seismic strengthening of banks' balance sheets?

Some of the submissions it has received in its review of bank capital requirements make sobering reading, especially about the impact on the dairy sector.

So first, some numbers. Bank lending to the agricultural sector has climbed from $12 billion in 2000 to $63b now — two-thirds of it to the dairy sector. It works out at $8300 per cow.

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Dairy farmers' average mortgage is a little under $5 million. Dairy products provided 27 per cent of New Zealand's goods export income