He said young farmers were often declined bank loans and it was causing them a lot of “mental stress”.
“We just want a more balanced view of what’s actually driving the increase in interest rates that some of these young farmers are experiencing.”
He had heard of 12 percent interest rates, and in one instance 18 percent on overdraft rates – although they were usually between 10 and 18 percent.
“A lot of these farmers are asset-rich, but they’re cash-poor.”
Of the 3000 farmers north of the Auckland Harbour Bridge, he said it was mostly younger farmers facing financial hurdles.
“Our young future farmers who we really want in the industry, and they get knocked back like that. You can only take so many knockbacks.
“Most farmers, if the going gets really tough, and I’ve dealt with a few in the past, will come out probably with all the debts settled but they won’t have much to live on themselves.”