Higher dairy farm loans

Press, Volume CXIV, Issue 33446, 30 January 1974, Page 16

Higher dairy farm loans

(N.Z. Press Association) WELLINGTON, Jan. 29. State Advances Corporation dairy farm purchase loans will be raised from a maximum of $30,000 to an average of $40,000. The Minister in charge of the Corporation (Mr Fraser) said today that the new average system would allow the corporation flexibility in dealing with loan applications. “While some applicants pan be settled with a smaller loan than $40,000, there will be cases of particular merit where the guideline figure can be exceeded,” he said. The increase in the average loan would offset higher farm prices which young sharemilkers in particular were finding difficult to finance, Mr Fraser said. It would also reduce the dependence of purchasers on more expensive second mortgage finance. The proportion of a farm’s cost not covered by the State Advances loan had been rising steadily since the limit was increased from $25,000 to $30,000 in June, 1972, Mr Fraser said. Although most farms changed hands at the end of the dairy season in June, the new limit had been introduced now to allow sharemilkers time to sell their herds and terminate contracts.

Existing loan approvals could be reviewed in cases of hardship arising from altered circumstances, said Mr Fraser.