South Canterbury Finance

Press Release – Federated Farmers

Federated Farmers appreciates the Government’s innovative approach to the receivership of South Canterbury Finance (SCF) and is seeking clarity from the receivers in respect of revolving credit facilities.South Canterbury Finance

Federated Farmers appreciates the Government’s innovative approach to the receivership of South Canterbury Finance (SCF) and is seeking clarity from the receivers in respect of revolving credit facilities.

“The recent speculation about SCF’s future has caused much unease but the Government’s innovative approach does seem to significantly reduce, risk of an implosion,” says Don Nicolson, Federated Farmers President.

“We have made contact with the receivers, McGrathNicol, in order to get clarity about how existing revolving credit facilities will be managed. In the meantime, customers should ring SCF direct on 0800 808 117 to discuss their individual circumstances.

“At this stage of the season farmers have a number of large outgoings with little or no income. Seasonal finance facilities are critical to farm businesses because it will be a number of weeks before farm revenues resume.

“We have also made contact with all of the major rural lenders and they are fully aware of the situation. This may also be an opportune time to speak with trusted farm advisors.

“If farmers need support or wish to discuss their situation with us then they can do so on 0800 327 646 or after hours, with the South Canterbury Rural Support Trust’s, David Hewson, on 03 612 6367.

“Federated Farmers called for calm and patience and we are thankful the Government’s approach is exactly along those lines,” Mr Nicolson concluded.

Federated Farmers further wished to highlight other options available to farmers:

Ravensdown Fertiliser Co-operative Limited (0800 100 123) offers extended credit terms to qualifying shareholders for up to nine months on all Ravensdown products. There are a range of options available designed to help manage cash flows; an example being deferred payment, where a term is agreed between five and nine months, at which time the full amount plus interest is paid in one lump sum to Ravensdown.

Ballance Agri-Nutrients (0800 222 090) will support its shareholders in the region on a case-by-case basis. Shareholders looking for support should contact their local Technical Sales Representative to discuss options available to them.

CRT (0800 278 583) offers a CreditLine revolving credit facility to qualifying shareholders with an interest rate of one percent per month Being a cooperative, CRT offers rebates, which apply at a rate of 15 percent of monthly interest paid – further reducing the low effective interest rate.

RD1 (0800 731 266) has a current offer for all South Island Fonterra suppliers of three months interest-free deferred or spread terms on most core dairy supplies which is available for uptake until the end of September. Beyond this, RD1 is happy to work with customers affected by the receivership by offering them further extended terms by arrangement with RD1.

PGG Wrightson Finance (0800 744 346) provides specialist term and seasonal finance to the agricultural sector.

ENDS

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