Credit for farmers under pressure

Press, 13 February 1981, Page 8

Credit for farmers under pressure

PA Wellington Demand for farm finance had again risen dramatically in the last 12 jnonths, the general manager of the New Zealand Stock and Station Agents’ Association (Mr' W. J. L. Simpson) said in a statement yesterday. Mr Simpson. said that farmers owed stock and station companies $361.6 million at the end of December, a rise of $4l million-' over the same time the previous year. “In view of this increasing pressure on funds, it is essential that farmers make formal arrangements with

their stock and station company managers where advances are required for any purpose, including March tax payments,” he said. “With farming going through a period of rapid expansion, it would be unfortunate if failure to make formal arrangements for advances necessitated restrictions which could have- an adverse effect on growth." Mr Simpson said rising costs and poor selling prices were the main reason for the present high demand for advances. Although stock and station companies have traditionally provided farmers with seasonal finance, they are not able to provide money for long-term capital requirements and development, Mr Simpson said. He ‘ added' that inflation was leading to a strain on member companies to find seasonal advances for their clients. ,