Heartland Bank warns dairy farm values could fall 40 percent from peak

Thu, 02 Jun 2016

By Edwin Mitson June 2 (BusinessDesk) - Heartland Bank, the Auckland-based lender, has told investors it is monitoring the dairy sector "with close attention" at a presentation and has warned farm values could fall 40 percent from peak to trough if the downturn continues or worsens beyond current expectations. Exposure to dairy farmers makes up 8 percent of its total lending book and 17 percent of its net receivables, which is the total money owed to the bank by customers minus amounts the bank accepts will never be repaid and has writte...

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