Source: ASB
ASB to back farmers with capital and pay for agri-consultant support, to help them improve resilience and revenue per hectare through land optimisation.
· Programme projected to add up $4.5 billion to GDP over the next five years.
ASB has allocated $1 billion of capital over the next five years through a new land optimisation programme, aimed at lifting the productivity and resilience of 1,000 farms.
In a first for New Zealand, ASB’s Every Hectare Matters funds independent agri-consultants to develop optimisation options specific to farmers’ land, goals, and succession needs. ASB will lend up to $5 million per customer, with wraparound advisory support over five years to help bring their new model to life.
Modelling by Lincoln University’s Centre of Excellence in Transformative Agribusiness found ASB’s programme, once fully implemented, could boost New Zealand’s GDP by up to $4.51 billion each year and contribute 5% toward the Government’s export growth targets.
Banking on farmers’ future success
In an innovative shift, access to capital and interest rates will be based on future returns, taking the new model into account, rather than current farm revenue.
To ease cashflow pressure, farmers can finance the full cost of their investment, including interest and short-term losses over five years. This gives time for enhancements to start paying off – whether that’s improving current systems, investing in technology, or adding farm accommodation, crops or livestock.
ASB General Manager Rural Aidan Gent says, “We’re speaking with farmers who love their land but find themselves stuck, unable to fund improvements to deliver stronger returns, and build businesses that their children want to carry on.
“Every Hectare Matters wraps an expert team around farmers to help them make the right changes for their land and future generations. This is a genuine shift in rural lending, that’s ultimately about building the resilience of the primary sector and keeping farms in families.”
Transforming the future of sheep and beef farms
Every Hectare Matters follows research by Lincoln University The Future Use of Land and How ToFund It, which was released earlier this year with ASB.
The report found smarter land use could add billions to our economy, creating jobs and improving environmental outcomes, but greater access to finance is needed to achieve this. Landowners with significant optimisation potential include Māori, and sheep and beef farmers – sectors which despite large land holdings, can face cashflow challenges that limit their ability to invest and generate better returns.
Beef + Lamb New Zealand Chief Executive Alan Thompson says optimisation and succession are critical to sheep and beef farmers.
“While our sector has made significant improvements in productivity, our research indicates there are still major gains that can be made. We’ve identified genetics, technology, and on-farm management advice as key to unlocking productivity and optimising land use.
“There’s real drive to build businesses that keep families on their land, but the volatility of our sector means securing funding for improvements, or to bring the next generation on board can be tough. Optimising sheep and beef farms will benefit farmers and our economy, and we welcome practical solutions from across industry to support this.”
Supporting Māori to unlock value of their whenua, and grow Te Ōhanga Māori
“There’s thousands of hectares of Māori land across Aotearoa with untapped potential,” says Aidan. “Every Hectare Matters will help owners optimise their whenua to generate sustainable returns that can be reinvested into agribusiness, or papakāinga (housing), and education. This is more than land productivity; it’s about strengthening tino rangatiratanga and creating intergenerational prosperity for Māori communities.”
Every Hectare Matters is open to new and current ASB rural customers, subject to eligibility. Landowners can find out more and connect with their local ASB Rural Manager at www.asb.co.nz/everyhectarematters.
