Sustainable practices are helping to futureproof farms across New Zealand by preserving the country’s natural resources and meeting the demands of international consumers. However, the path to sustainability presents many challenges and farmers are navigating a complex and evolving agricultural landscape.

Recognising these challenges, Westpac is exploring new ways to support farmers and has recently introduced a ground-breaking initiative called the Westpac Sustainable Farm Loan. Tim Henshaw, Westpac head of agribusiness, says the Westpac Sustainable Farm Loan offers farmers a unique opportunity to advance their farm’s future.

“It’s a demonstration of our commitment to fostering sustainable agriculture and ensuring a prosperous future for New Zealand,” he says.

A whole farm approach

Along with forestry and fishing, agriculture contributes NZ$13.97 billion to New Zealand’s GDP and employs almost 80,000 people. New Zealand exports 80–90% of its dairy, meat, fruit and vegetable production in any given year, and the government has set an ambitious target to double the value of the sector’s exports in the next decade. 

While it was announced in June that greenhouse gases from agriculture will not be covered in the country’s emissions trading scheme next year, a focus on sustainability will help farmers to meet the demands of international consumers, who expect companies to focus on reducing their carbon emissions and to be transparent about the carbon footprint of products.

Sustainable practices are also linked to productivity and innovation. A recent economic bulletin from Westpac about increasing productivity of New Zealand agriculture explores how investing in R&D will help to lift productivity and enable agriculture to remain at the forefront of new developments, including those to reduce emissions.

Jacqui Groves, Westpac agribusiness manager, explains that rather than funding individual compliance or green initiatives, Westpac’s loan program helps farmers take a different approach to see the entire business as a sustainable asset. “This is New Zealand’s first and only whole-farm loan,” says Groves. “At the heart of the program is the concept that the whole farm is a sustainable asset. It effectively gives farmers more control and flexibility and offers financial incentives on all term lending.”

Boosting resilience and sustainability

Westpac’s Sustainable Farm Loan encourages farmers to achieve the new Westpac Sustainable Farm Standard, which encourages on-farm sustainability and resilience across the whole farm.

Jo Faber, Westpac senior manager research – agribusiness, says the loan program was born from feedback from farmers and agribusiness owners who expressed a need for support in futureproofing their farm assets. Flood protection, drought resilience and emissions management are the three main targets farmers have identified to use Westpac’s Sustainable Farm Loan in its first year.

Faber says that Westpac worked with a pilot group of farmers and assurance organisation AsureQuality to address those needs. This included developing criteria to guide farmers towards sustainable practices. 

“Farmers and growers commit to meeting the Westpac Sustainable Farm Standards with recognition of existing farm assurance programs, to streamline reporting and reduce duplication,” says Faber.

Interested parties are encouraged to contact their nearest Westpac branch or visit the website to find out more. A local agribusiness specialist will then work with each farmer to discuss their specific needs and help them understand the benefits of taking a whole-farm approach.

“The program reinforces Westpac’s commitment to supporting New Zealand’s agriculture sector. It accelerates on-farm sustainability and promotes resilience across the entire farm,” says Henshaw.

Find out more:

If you or your clients want more information about the Westpac Sustainable Farm Loan and Sustainable Farm Standard, visit: westpac.co.nz/agribusiness/sustainable-farm-loan