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

New data shows more Kiwi farmers are satisfied with their banks - pointing to improved communication and less 'undue pressure'.

Federated Farmers’ latest Banking Survey shows 60 percent of respondents are 'satisfied' or 'very satisfied' with their bank.

The Country's Jamie Mackay explains further.

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Episode Transcript

Speaker 1 (00:00):
Jamie McKay Hosts of the Countries with us right now, Hey, Jamie,
Good evening, Heather. Now, why are farmers feeling a little
happier with their banks? Well, I don't know about feeling
a little happier. A bit less grumpy might be a
better description, Heather. This is the latest banking survey from
Federated farmers, so sixty percent of them are satisfied or

(00:20):
very satisfied with their bank. That's up from fifty three
percent in the November twenty twenty four survey, but a
long way, well shy of the eighty percent peak way
back in twenty seventeen. Eighteen percent of the farmers said
they were feeling undue bank pressure, down from twenty four
percent six months earlier. So I guess that's a positive number.

(00:42):
But Heather, some of the interesting things for me out
of this survey were the stats around farmers mortgages and debts.
Listen to this. Eighty four percent of farmers have a mortgage.
Probably not surprising that number. The surprising number might be
the average value of that mortgage four point seven billion.
And I was just doing a rough calculation back of

(01:03):
the envelope sort of stuff. If you had to service
with interest and principal repayments four point seven million dollars
at say seven and a half percent interest and principle,
that's three hundred and fifty grand just to service that alone.
Overdraft eighty eight percent of them. I got an overdraft
average overdraft three point fifty. The poor old arable farmers,

(01:24):
they're up over seven hundred, probably to do with all
the new gear they've got to buy. Here's the one
that's a bit of a jaw dropper. In my view.
Overdraft interest rates have dropped along with the OCR Obviously,
Rabobank offers the lowest overdraft rates at seven point three percent.
Now the B and Z remains the highest, at nine
points seven percent. I would call that a healthy margin, Heather.

(01:48):
In fact, I might even call it profiteering. Jamie, it's
good to talk to you. Thank you for running us
through it. We'll talk to you again on Thursday, Jammie McKay,
Host of the Country. For more from Heather Duplassy Alan Drove,
listen live to News Talks It B from four pm weekdays,
or follow the podcast on iHeartRadio.