Farmers report greater satisfaction with their banks and reduced financial pressure, yet the sector’s confidence lags far behind levels from the previous decade, according to Federated Farmers’ newest banking survey.
61% of farmers say they’re satisfied or very satisfied with their bank, holding steady from the May 2025 survey.
“That’s a good improvement from the 51% satisfaction rate from our survey this time last year, but it’s a long way off from the 80% level recorded in 2017,” Federated Farmers banking spokesperson Mark Hooper said.
Of nearly 600 survey respondents, 14% reported undue pressure from banks, down from 24% in November last year.
“Clearly, economic conditions weigh in on these farmer sentiments, but it’s also true that good communication, access to advice, lending terms and other factors are part of the equation,” Hooper explained.
“For example, nearly a quarter said their bank hadn’t allowed them to structure their debt in the most efficient or appropriate way, such as restricting access to fixed rates, splitting loans, or using interest-only periods.”
“That’s up from 19% in the previous survey.”
Farmers underscored the role of their relationship with their bank manager.
“Good managers were praised, with one farmer saying, ‘We have a fantastic bank manager who understands farming.’
“But many complained about turnover, inexperience, and poor communication.”
Federated Farmers said it has focused on banks, their charges and services, and competition in rural lending over the past two years.
“We’ve been a driving force behind the inquiry into banking, the Reserve Bank capital review, and the Commerce Commission’s investigation into cartel-like behaviour,” Hooper said.
“Just this week we’ve seen the result of that, with the Reserve Bank easing capital settings, which will save the average farmer $11,000 a year in annual interest costs.”
“It’s just a shame we couldn’t persuade the Reserve Bank to be less cautious and conservative, as they could have eased the settings much more.”