Debt and Risk Management for Farmers

Federated Farmers has reported that farmers are beginning to dip into their overdrafts and loans again as profits are down and costs are rising. The Reserve bank figures show that agricultural sector lending has increased, up $746 million from February last year to February 2023, according to Stuff’s reporting.

Stuff quoted Rabobank NZ chief executive Todd Charteris as saying, “with profit margins likely to remain tight […] business success in 2023 would be possible if farmers focused on reducing business costs.”

Concerns about profitability and morale in the farming sector have also been raised in health and safety reporting - which we summarise here- as fatigue and cost cutting can undermine farmers’ ability to meet health and safety regulations.

It’s not hard to see a connection between debt and health risks as pressure on farmers mounts. The risks posed by overwork and under-resourcing on farms are financial, mental, and physical in nature. It is important to recognise early warning signs and take steps to address them early on.

If you are concerned about your situation, reach out to Rural Accountants to discuss our financial planning and budgeting services. We are experienced in assisting our clients on these matters, especially in preparation for seeking bank loans or financial assistance. Managing these issues in advance with help from an expert team can help to reduce stress and manage potential risks.


What Our Customers Think

Great local Accountants. They provide an excellent service with great explanations for the layman. They provide accounting services for non rural clients too.

Quinn Wilson, Restaurant Owner, The Wagon
What Our Customers Think

Rural Accountants is a real asset to our business.

The team at Rural Accountants pretty much manage all our administrative tasks for the group including payroll and tax planning, ensuring we don’t pay any more than necessary. They are at the forefront of technology and have helped us get up and running with Xero and Figured which is much more efficient than the way we used to work.

Sam Jones, Managing Director, Sybton Farm Ltd Partnership
What Our Customers Think

Christine is very knowledgeable, great to deal with and knows our business well. She is also a sheep & beef farmer so knows the industry really well and understands our needs.

Rural Accountants keeps us on track through strategic and forward planning meetings throughout the year. Christine knows our business inside out so she can deal with our questions instantly.

Mathew & Gemma Barham, Hawke’s Bay Farmer of the Year 2012
What Our Customers Think

What Our Customers Think

I used to work out my GST and process it manually which would take me at least a full day every two months. The team set up reconcilliation rules and other quick tools, and showed me how to do all my reconcilliations and process my GST returns through Xero which now takes me no time at all!

Mike O'Neill, Financial Services Northland Ltd
What Our Customers Think

As a farmer, Christine understands our business and how farmers and growers operate.

We use Rural Accountants to provide a full accounting service to an orcharding partnership which operates a number of orchards with a wide spread of varieties and management systems. Rural Accountants are always timely and accurate, and their annual financial accounts are extremely easy to understand and very grower-friendly.

Paul Jones, Orchardist