Sustainability key to the future of farming
Committing to the environment and achieving compliance is the future of the rural sector.
Acommitment to the environment and achieving compliance is a key focus of the rural sector for the future – despite the misconception that Kiwi farmers are lagging behind in the sustainability stakes.
ASB national manager rural corporate James Gardner says his role sees him talking to rural customers across the country. The farmers he meets are committed to running their businesses in a sustainable way that will safeguard the land for future generations.
“There’s a misconception that farmers don’t care about the environment. It’s something that frustrates farmers, and it frustrates us as rural bankers,” he says.
“We talk about goals and aspirations with our customers and one of the key things we often hear is about stewardship, the concept of being custodians of the land, and wanting to pass farms on in a better state than when they inherited or bought them. That speaks strongly to their willingness to look after their farms and make improvements from an environmental aspect.”
Gardner says with councils around the country at different stages with their environmental compliance requirements, it’s a complex area for both new and existing rural business owners to negotiate, but ASB is committed to supporting customers to achieving compliance. Over the past five years upwards of $120 million has been lent to rural customers thanks to the bank’s Rural Environmental Compliance Loan, designed specifically to help farmers manage environmental compliance costs and get sustainability projects off the ground. The loan has no establishment fee and a low variable interest rate with no customer margin applied.
“One of the key things we want to do is make sure that our customers are compliant. That’s good for them, and it’s critical for us to be able to support them into the future.
“What we’re seeing is our customers want us to support them into excellence. Rather than just ticking boxes, they want to excel.” He says there are examples all over the country of farmers who have transformed the land they’re working.
Warren and Suzanne Harris are Canterbury farmers who converted to dairy 15 years ago. Together with their equity partners, and their son who is involved in running the farm, they’re committed to farming sustainably, reducing negative environmental impact.
“We’re not going to ruin something that’s our livelihood,” says Harris.
Their dairy unit was part of a Canterbury
Waterway Rehabilitation Experiment (CAREX) project that successfully reduced the nitrate loading into the farm’s waterways. While the CAREX project has been completed, they’re continuing to develop land using the same principles. Combined with other improvements including fencing and planting waterways, Harris says overall their drains and soil are in better condition than they ever have been.
“We’ll continue to do more as we can afford it,” he says.
Gardner says in a post Covid-19 economy where overseas markets are especially conscious of food safety, New Zealand’s clean, green image makes it stand out. Sustainability is key to protecting that into the future. “New Zealand has an outstanding reputation, certainly from a tourism perspective, but also from a food quality and security aspect as well. It continues to be critical that we really deliver on that,” he says.
“It’s about everyone contributing. Individually, each farm isn’t necessarily going to make a massive difference. But collectively everyone in the region contributing makes the difference.”
Likewise, whether it’s your banker or your consultant, everyone being on board and supporting the industry is what’s critical to its success. The industry and farmers are very motivated to get there.”
“We talk about goals and aspirations with our customers and one of the key things we often hear is about stewardship "
James Gardner