21 Mar 2014

Banks prepared to lend to Maori farms

7:52 pm on 21 March 2014

Maori farms are being told if they have a good business plan, they're more likely to get loans from the bank.

A farmer at Pakihiroa station in Ruatoria.

A farmer at Pakihiroa station in Ruatoria. Photo: PHOTO NZ

The Ministry for Primary Industries and Te Tumu Paeroa, formally known as the Maori Trustee, are working with various Maori land trusts to boost the economic potential of their whenua.

The Ministry's deputy director general Ben Dalton says previously there was a reluctance among banks to loan to Maori farms, but that's no longer the case.

He says so long as the farming venture has a suitable governance structure, a decent business plan, the appropriate land, and the right personnel to make it work, then banks will be more open to lending to Maori farms.

Mr Dalton admits that not all of the barriers have completely disappeared for Maori farms, but getting finance shouldn't be seen as a stumbling block to developing Maori land.