Farmers happy with banks, says Fed survey

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Banks have come to the party for New Zealand farmers requiring support during the dairy downturn, according to a Federated Farmers survey.

The survey showed that only 6.6 per cent of dairy farmers had come under undue pressure from banks over their mortgage.

Just 5.7 per cent were dissatisfied with banks over their mortgages and 3.1 per cent were unhappy about the quality of communication from banks over the past three months.

Across all farming industries, the level of dissatisfaction over mortgages was 5.2 per cent, with 5.5 per cent saying they have come under undue pressure in this area and 3.5 per cent unhappy with how banks were communicating with them.

"The support of banks is absolutely critical in these market conditions," Federated Farmers President William Rolleston said in a statement. "They have the ability to make a significant difference to farmers, the industry and the economy if they work constructively and take a long term view," he said in a statement.

The survey also found that 25 per cent of dairy farmers do not have a detailed budget for the current season compare with 33 per cent for all farmers.

"More than 10 per cent do not have a mortgage and many more have very low levels of debt so this is not entirely surprising, however we remind farmers that, particularly in difficult market conditions, it is important to review your budgets and obtain expert advice from your bank, accountant and farm advisor," Rolleston said.

New Zealand Bankers' Association Chief Executive Kirk Hope said banks were working closely with dairy farmers to help them manage through tough times.