IDEAS home Printed from https://ideas.repec.org/a/nzb/nzbbul/oct202307.html
   My bibliography  Save this article

Developments in the agricultural sector

Author

Abstract

An article from the November 2023 Financial Stability Report. The agricultural sector is facing difficult economic conditions, owing to falls in dairy and meat prices, elevated operating expenses, and increased debt servicing costs. The agricultural sector represents 11% of aggregate bank lending. Within agricultural lending, dairy takes the predominant share (around 60%), with beef and sheep as the second-largest category (25%). In the dairy sector, loan defaults remain low but are expected to increase. This could accelerate if there is a prolonged period of low prices. In the longer term, the agricultural sector faces climate-related challenges. We are working with banks to improve their capability in assessing climate risks, through stress testing their agricultural portfolio against shocks including droughts and emissions pricing.

Suggested Citation

  • Bruce Lu, 2023. "Developments in the agricultural sector," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 86, pages 1-6, October.
    • Handle: RePEc:nzb:nzbbul:oct2023:07
    as

    Download full text from publisher

    File URL: https://www.rbnz.govt.nz/-/media/project/sites/rbnz/files/publications/financial-stability-reports/2023/nov-2023/fsr-nov-23-special-topic-3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:oct2023:07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Reserve Bank of New Zealand Knowledge Centre (email available below). General contact details of provider: https://edirc.repec.org/data/rbngvnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.