Whether you like it or not, you will probably need to fund your farming operations with borrowing from one of New Zealand’s main trading banks.
The main terms that borrowers look at when signing loan facility documentation relate to the cost of the borrowing: interest rate, the amount of the repayment sums and the term of the lending. The security required is usually a mortgage over the farm land and, more often than not, a general security agreement which is effectively a mortgage over all of the farming entity’s assets that are not land such as stock, crops, machinery, receivables and so on.
Continue reading “Loan Documents: Read the fine print, there could be some surprises”
A new (uncertain) dawn for farmers
One of the hot issues in the recent election campaign was raising the water standards in our rivers and lakes. Regional authorities are the bodies that are charged with implementing the government’s water standards policy.
All regional authorities have implemented, or are in the process of implementing, plan changes that are designed to enable them to achieve the minimum water standards set by government.
Reduce leaching into waterway
One of the aims of these plan changes is to reduce the amount of nitrogen and/or phosphorous leaching from farms into waterways.
Continue reading “Farm Management Plans”
Give it some thought when buying or selling
Agreements for the sale and purchase of rural land generally contain a ‘good husbandry’ clause. This clause is often inserted into the agreement as a ‘boiler plate’ or standard clause by real estate agents when preparing contracts. We discuss why it’s better to tailor-make this clause to suit each transaction.
The standard clause is often worded along these lines:
From the date of this Agreement until settlement, the Vendor shall continue to farm the property in a good and husband-like manner and in accordance with approved good farming practice in the district and shall neither overstock nor under-stock the property, nor do anything to impoverish the soil nor remove or damage any improvement or fixtures on the property.
However, both a seller and a buyer should give careful thought to the wording of this clause and its implications; it should be tailored to suit the particulars of any given transaction. This is particularly so for transactions where settlement is some time out from when the agreement was signed. It also needs to relate to properties where specific types of farming are being carried out.
Continue reading “Good Husbandry”
What does this mean for farmers?
The government recently announced its Clean Water Package. The release has caused considerable controversy, largely around the proposed target of 90% of rivers and lakes being ‘swimmable’ by 2040 and, in particular, the E.coli guidelines for swimmable rivers being 540 E.coli per 100mls.
The Green Party and Labour Party were vociferous in their criticism of the government’s announcement largely because the amount of E.coli that can be present in swimmable water has doubled.
As well, Forest and Bird advised the Minister for the Environment, Dr Nick Smith and the Minister for Primary Industries, Nathan Guy that it was withdrawing from the Land and Water Forum. Forest and Bird is a very influential pressure group in this arena; it took legal action in relation to the proposed Ruataniwha Dam and that matter is still being litigated.
Continue reading “Clean Water Package 2017”
Resource Legislation Amendment Bill 2015
The Resource Legislation Amendment Bill was introduced to Parliament on 26 November 2015. The submission process is well underway with the Select Committee receiving submissions until Monday, 14 March 2016.
The Bill’s main purpose is ‘to create a Resource Management system that achieves the sustainable management of natural and physical resources in an efficient and equitable way.’ In the last election the current government was very clear in its desire to make changes to the Resource Management Act, and related legislation, to try to speed up and simplify Resource Management Act processes.
Continue reading “Time to Fence Those Waterways!”
Here we publish the March 2011 issue of Rural eSpeaking; we hope you enjoy reading it. If you would like to talk further about any rural issues, please don’t hesitate to contact us.
In this Autumn edition, you can read articles on:
· Personal Property Securities Act: Grappling with section 53 in a livestock purchase
· Leasing the Farm: Can be a practical solution
· Over the Fence: New minimum wage rates – Sharemilking Arrangements: 2011-2-12 season – Public Holidays: Easter 2011 – GST zero-rating land transactions
The next issue of Rural eSpeaking will be published in July.
Here is the Summer issue of Rural eSpeaking; we hope you enjoy reading it. If you would like to talk further about any of the topics covered in this edition, please don’t hesitate to contact us.
In this issue you can read articles on:
- Water, Water Everywhere: Now a finite resource
- Access to the Outdoors: Unlocking the gates to your property
- Over the Fence: 90-day trial periods – Changes to employment legislation – livestock grazing agreements
The next issue of Rural will be published in March.