Banks confident in agricultural clients as more non-dairy loans become distressed

Banks acknowledge sheep and beef farming are particularly challenging at present but have confidence in their agricultural clients. (Image: Getty)

Riley Kennedy

Thu, 09 May 2024

The country’s major banks are confident their farming clients are well positioned to cope with prolonged weakness in commodity prices putting pressure on bottom lines.That's despite the Reserve Bank of NZ (RBNZ) highlighting that stress in agricultural loans outside the dairy sector is at its highest in more than 10 years.While dairy prices will end the season at or above breakeven for most farmers, sheep and beef farmers are coming under significant pressure as red meat exports hit long-term lows.Lamb prices have been particularly im...

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