Latest / Early Edition with Ryan Bridge / Mark Hooper: Federated Farmers Banking Spokesperson on agricultural lending falling by $1.4 billion and increased satisfaction with banks

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Mark Hooper: Federated Farmers Banking Spokesperson on agricultural lending falling by $1.4 billion and increased satisfaction with banks · Early Edition with Ryan Bridge

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  Speaker 1: Banks has farmer lending dropped nearly one and a half
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  Speaker 1: billion in the year to April. Here back home Fonterra
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  Speaker 1: and their lack delis payout plus strong returns for red
• 0:09
  Speaker 1: meat for dairy while they're paying down debt. Number of
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  Speaker 1: farmers with mortgages under two million forty one percent. Six
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  Speaker 1: months ago it was thirty eight percent. Mark Hooper, Fed
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  Speaker 1: Farmers Banking spokesperson, Hey.
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  Speaker 2: Mark, good morning.
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  Speaker 1: It's interesting to see the change in the attitudes of
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  Speaker 1: farmers to their banks.
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  Speaker 2: Yeah, yeah, well, I mean overall, it's it's a positive trend.
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  Speaker 2: At present. What we're seeing is a sixty nine percent
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  Speaker 2: satisfaction rate, which is the highest that we've seen since
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  Speaker 2: twenty eighteen. And at the other end of the spectrum,
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  Speaker 2: those farmers that are feeling under undue pressure from their
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  Speaker 2: banks down to ten percent, which is also the lowest
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  Speaker 2: since twenty eighteen. So a good kind of growing, strong relationship.
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  Speaker 2: I think happening there.
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  Speaker 1: Is that the function of farmers are doing well, so
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  Speaker 1: banks are less concerned or do you think there's a
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  Speaker 1: genuine improvement and how they're getting on.
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  Speaker 2: Well, it's it's it's no doubt, a little bit of
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  Speaker 2: both certainly, good times you know, make for good friends,
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  Speaker 2: don't they. But what what we're actually seeing happen, and
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  Speaker 2: it's probably a reflection of what you were reporting on
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  Speaker 2: there with international banks, is that the New Zealand banks
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  Speaker 2: are currently competing quite strongly for a share of that
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  Speaker 2: rural market debt and so that, in turn, I think
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  Speaker 2: does drive good service. And that's probably one of the
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  Speaker 2: key messages that came out of the service survey as well.
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  Speaker 2: Is it it's the relationship that the person has with
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  Speaker 2: the bank which tends to override a lot of the
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  Speaker 2: other outcomes. There might be variations and interest rates and things,
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  Speaker 2: but if they've got good communication, a good relationship with
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  Speaker 2: their agrid manager, they tend to be more satisfied. Yeah.
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  Speaker 1: I thought that was the most interesting thing to come
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  Speaker 1: out of well. I mean, obviously the drop and borrowing,
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  Speaker 1: but the most interesting thing was they care more about
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  Speaker 1: the relationship, having someone decent who comes to the farm
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  Speaker 1: and talks to them and they know over an interest rate.
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  Speaker 2: Yeah, yeah, that's right. But I think that internet relationship
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  Speaker 2: does tend to drive some of those some of those
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  Speaker 2: interest rate outcomes as well. I guess the concerning area
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  Speaker 2: here is that we've got a couple of things. One
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  Speaker 2: is that there is still quite a bit of variability
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  Speaker 2: within that. We do still get reporting come through of
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  Speaker 2: people having poor relationships and feeling under pressure from their banks,
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  Speaker 2: and that's a reflection often of that breakdown of relationship.
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  Speaker 2: But also it'll be interesting to see because we're not
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  Speaker 2: having fair weather times with arable farmers at this stage.
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  Speaker 2: They are the punch quite a bit more than others
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  Speaker 2: for a variety of reasons, and I guess how well
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  Speaker 2: the bank manages those relationships will be a reflection of
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  Speaker 2: the overall attitude.
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  Speaker 1: Good point, Mark Cooper, Food Farmer's Nice Tavy on the show.
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  Speaker 1: As always.
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