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Northland farmers struggle with high interest rates as bank profits surge

Rural banking news

Northland farmers are voicing frustration as they face increasing difficulty obtaining short-term loans to cover tax bills while banks report substantial profits from high-interest rates.

According to a recent Federated Farmers banking survey, the average farm mortgage has surged to nearly $4.8 million with interest rates averaging 8.3 percent. This financial strain has led to a significant drop in farmer satisfaction with their banks, now at 51 percent—the lowest since the survey began in 2015.

Over half of the calls to the Rural Support Trust are now related to financial and banking issues, indicative of the severe economic pressure on farmers, particularly younger ones who are often denied loans, leading to mental stress and financial instability.

Northland Federated Farmers president Colin Hannah highlights that the financial landscape for farmers has become increasingly dire, with returns down and costs up, leaving many with no spare cash.

He notes that some young farmers are facing exorbitant interest rates, sometimes as high as 18 percent on overdrafts. The situation is especially tough for the roughly 3,000 farmers north of the Auckland Harbour Bridge, who are mostly young and struggling to overcome financial hurdles.

In response the Primary Production Select Committee has initiated an investigation into rural banking practices. Despite claims from rural lender Rabobank that regulatory requirements for rural lending contribute to higher rates, farmers are calling for greater transparency and fairness in agribusiness lending to ensure the industry’s sustainability.

Image credit: Leon Ephraim


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  1. Farmers, you need to wisen up.
    Banks and their owners are NOT on your side. Neither are subsequent governments because they cannot act sovereign because they HAVE no other choice than to splash out debt carrots to the voting public donkey.
    The international bankster cabal: “We extort societies since 250+ years.”
    This will only change if true financial history is known to the donkey.

  2. They should create a ” tontine”. Sorry i don t know other word.
    It is a legal financial agreement between individuals. They help each others in turn to finance a project. No banking and no interest. And your money circulates within a project and is safer than at the bank

  3. To be considered.
    Don t take a loan for any thing if you can avoid it as we arrive at economically dangerous times.
    The paper € and $ will soon be worth nothing. Result of quantitative easing ( printing money) + now petro dollars worth nothing. The banks know that and are desperate to get their filthy finger onto what they can grab.
    So it is best to stick to what you have( paid) already. It is yours. And don t sell land .
    As soon as you are endebted, you are in danger that the bank will ” re-possess” if your circumstances change to bad. This big banking scam has been going on for decades now. It was done on purpose through “credit default swap” to dispossess individuals and industry and to enrich for ex JP Morgan ( invented credit default swap) etc.
    Banks are now converting fast their ” paper” money to gold, land and crops/ food.
    Buying the world over and driving the food prices up. If they can they will cause famines to control populations.
    It is best, and surely if you have no garden where you can grow veg to have a full pantry of essential and long life food like
    Oil, rice, pasta, sugar, etc. Just in case.
    As i said to my kids you can always give those away if you dont need them to foodbanks.
    I have been watching many of lynette zang video last 2 years ( others also). She taught me a lot ( gratefull) . She also advises people to organize themselves in ( small) communities. To be able to help each other. Necessary now that churches are for the most empty.


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