Do you have a farming business who has growth aspirations but you’re not sure how to fund this?

Are you a large farming business looking to exit some or all of your assets but want to leave some of your exiting capital in the sector, in a business and sector you know?

Do you have some capital, but not enough and want to make some bigger leaps in the farming sector?

Maybe you’ve got a farming business but feel that your current capital structure isn’t match fit, suited to your business needs or doesn’t allow you to sleep at night?

Are a wholesale investor and you want to invest directly into a farming operation and enjoy returns from both profit and capital growth?

Or, maybe you’re a wholesale investor and want a fixed return by advancing a loan to a first mortgage backed by land?

Are you interested in short- or medium-term loans with enhanced returns where the risk return equation is compelling?

In our last article we wrote about the key drivers of success including the need for deeper capital markets to support and encourage greater prosperity in New Zealand.   We received lots of feedback on this article which demonstrates just how real these needs are.

(If any of the above examples resonate with you, click on this link and fill out the form and we will be in touch).

So, what is NZAB’s role in meeting these needs?

Since we started back in 2017, we’ve been on a mission to help farmers get back in control of their banking.

This means that we work hard to understand their businesses deeply and help them act with confidence so they can focus on what they’re good at, which takes the worry out of the rest.

For the most part, that means working with the farmer and their bank to ensure both sides get what they need.

However, increasingly we are finding more and more need for non-bank funding solutions. This ranges from equity capital to private debt and everything that sits in between.  

 As good as New Zealand banks have been at providing debt capital, its simply not enough to cover the entire spectrum of needs of the Agri sector.

The current regulations in the banking sector have prompted banks to simplify their credit criteria and, as a result, limit the level of risk they are willing to undertake. Consequently, when farmers make a lending request, it often feels like trying to fit a square peg into a round hole. This mismatch can lead to fluctuations in credit appetite and a wavering of confidence within the industry, ultimately impacting returns and asset values.

Whilst there is significant capital in New Zealand and around the world the spectrum of currently available funding solutions for New Zealand Agri is actually quite limited. The reality is that our capital markets in Agri are thin and underdeveloped.