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Jamie Mackay: The Country host on new data showing farmers are more satisfied with their banks · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks EDB. Follow
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  Speaker 2: Jamie McKay hosts of the Countries with Us Right now,
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  Speaker 2: Hey Jamie, Good evening, Heather.
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  Speaker 1: Now, why are farmers feeling a little happier with their banks?
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  Speaker 2: Well? I don't know about feeling a little happier. A
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  Speaker 2: bit less grumpy might be a better description, Heather. This
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  Speaker 2: is the latest banking survey from Federated Farmers, so sixty
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  Speaker 2: percent of them are satisfied or very satisfied with their bank.
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  Speaker 2: That's up from fifty three percent in the November twenty
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  Speaker 2: twenty four survey, but a long way well shy of
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  Speaker 2: the eighty percent peak way back in twenty seventeen. Eighteen
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  Speaker 2: percent of the farmers said they were feeling undue bank pressure,
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  Speaker 2: down from twenty four percent six months earlier. So I
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  Speaker 2: guess that's a positive number. But Heather, some of the
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  Speaker 2: interesting things for me out of this survey were the
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  Speaker 2: stats around farmers mortgages and debts. Listen to this. Eighty
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  Speaker 2: four percent of farmers have a mortgage. Probably not surprising
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  Speaker 2: that number. The surprising number might be the average value
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  Speaker 2: of that mortgage four point seven million, and I was
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  Speaker 2: just doing a rough calculation back of the envelope sort
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  Speaker 2: of stuff. If you had to service with interest and
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  Speaker 2: principal repayments four point seven million dollars at say seven
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  Speaker 2: and a half percent interest and principle, that's three hundred
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  Speaker 2: and fifty grand just to service that alone. Overdraft. Eighty
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  Speaker 2: eight percent of them have got an overdraft average overdraft
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  Speaker 2: three point fifty. The poor old arable farmers, they're up
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  Speaker 2: over seven hundred, probably to do with all the new
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  Speaker 2: gear they've got to buy. Here's the one that's a
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  Speaker 2: bit of a jaw dropper. And my view, overdraft interest
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  Speaker 2: rates have dropped along with the OCR Obviously, Rabobank offers
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  Speaker 2: the lowest overdraft rates at seven point three percent. Now
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  Speaker 2: the B and Z remains the highest at nine point
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  Speaker 2: seven percent. I would call that a healthy margin, Heather.
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  Speaker 2: In fact, I might even call it profiteering.
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  Speaker 1: Jamie, it's good to talk to you. Thank you for
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  Speaker 1: running us through it.
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  Speaker 2: We'll talk to you again on Thursday. Jamie Mackay hosts
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  Speaker 2: The Country.
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