The state of agricultural credit in New Zealand

Abstract

In this paper the subject of agricultural credit has been subdivided into three sections covering background, borrowing, and lending. The background covers some of the changes in the New Zealand economy and government policies which have affected both borrowers and lenders in the agricultural sector, and consequently the amount and form of credit used. The section on borrowing (Section 3) examines the present credit needs of farmers, in particular the apparent trends towards increased equity and greater difficulty in servicing debt. The lending section (Section 4) examines the roles of government and private lending institutions in the field of agricultural credit and changes in the amount and form of credit available