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Banks still growing lending to farmers very fast; lending to other businesses falling
Banks and non-banks grew lending to farmers by NZ$161 million in February to NZ$44.069 billion, meaning growth from the same month a year ago was a stonking 22.3%, figures from RBNZ show. Farm lending has grown NZ$8.046 billion in the last year, which is 51% more than the extra NZ$5.325 billion lent to home owners in the last year. This will fuel fears of a bubble developing in farm property, although some of this will be financing for dairy inventory being built up by Fonterra at the peak of the season. Meanwhile lending to non-farm businesses fell by NZ$67 million in February to NZ$79.931 billion, which dragged the annual growth rate down to 10.9%. These figures suggest bank reassurances that their doors are open and they are lending to small businesses, manufacturers and medium sized businesses may be an exaggeration.
Also dude with that Agriculture
Also dude with that Agriculture thing,
I tried to buy AFFCO today, what I thought was this well,
if these people [ AFFCO ] were worth 46 cents when our dollar was 79 cents against USA then they worth this now
38 cents or something,
this the way I see it,
how do you see things dude, should we make the Euro the international currency
or china,
With the amount of farm
With the amount of farm sales down and the average price of farm sales down (http://tiny.cc/dLkCN) what does this growth in lending mean? It's not likely to be a wave of enthusiastic capital spending on new dairy sheds, tractors etc is it?
I think it's down to farmers adding mortgage break fees to their loans and covering losses that the farms are making. I think we could be seeing a huge errosion of farmer's equity.