Creating a strategic advantage in today's Rural Property market.

Information only disclaimer. The information and commentary in this email are provided for general information purposes only. We recommend the recipients seek financial advice about their circumstances from their adviser before making any financial or investment decision or taking any action.

In the agribusiness world, Spring is far more than just a change of season - it marks a period of opportunity in New Zealand’s Rural Property market. Decisions are made to expand operations, purchase new land or restructure business assets. Yet the difference between seizing an opportunity and missing out, often comes down to preparation.

Chatter around the traps suggests this Spring is set to be one of the hottest in recent times, with strong commodity prices, interest rates trending down, and a strong flow of capital into New Zealand agriculture.

‘Bank Ready’ = Market Ready

The ‘Bank Ready’ concept isn’t just about ticking boxes with your bank. It’s about positioning yourself to act with confidence and feel in control of the finance and property purchase process. Lenders are looking for a clear and a well thought out approach to finance application that aligns with your strategy.

We hear and talk about the concept of ‘Bank Ready’, but what does that mean?

I’ve broken this down into three key principles.

1. Knowing your business position gives you confidence to execute

'Bank Ready' farmers and growers who understand not only their financial position but also their risk profile, cashflow position and how it fits within their long-term strategy have the best chance of success in getting competitive debt capital the first time.

It’s not just about today’s balance sheet - it’s about knowing what could go wrong, what contingencies you have, and how you’d respond. Banks stress-test deals. The more context you give around “what if” scenarios, the more confidence they’ll have in your resilience.

Borrowing capacity is another critical factor. Don’t leave this in your bank’s hands; know exactly how they view your position and how much you can borrow. That knowledge gives you leverage, pre-approvals, and the confidence to execute quickly.

This is also the time to ensure you’ve got funding headroom. Expansion is exciting, but it’s vital to raise additional capital while you’re strong - not when the cycle turns. Going in “skinny” leaves no buffer for volatility.

2. Bank Alignment