7 May 2015

Farmer waits nervously for swaps payout

8:33 pm on 7 May 2015

A man forced to sell his farm after losing millions in an interest rate deal is waiting to see how big an imminent payout is before deciding whether to fight on.

More than 250 farmers will receive settlements after the Commerce Commission found three banks - ASB, ANZ and Westpac - mislead farmers into signing up for swaps.

The swaps involved farmers hedging against an increase in interest rates but found they were locked in when the rates dropped.

The Commerce Commission fronted up to a parliamentary committee today to explain why a $25 million settlement reached with the banks is better, even though it says it would have won if it had gone to court.

The man who lost his farm, who does not want to be named, said the settlement would not cover the millions he had lost.

He said if enough farmers wanted to fight, he would consider it too.

"There's safety in numbers I guess if enough farmers feel dissatisfied we'll go with them, otherwise you've just got to accept a pittance and walk away and say 'well that's experience'."