Resilience and finances on Aotearoa New Zealand farms: Evidence from a random survey on the sources and uses of debt

Abstract

Abstract Debt and income are keystones to financial resilience on New Zealand farms. This article utilises a survey on finance to assess farm financial health using a new model of resilience. It shows the majority of farms are financially strong. Further borrowing and development are possible. With increasing variability resulting from the longer term trade liberalisation as well as global warming impacts, the high equity will provide future resilience. On the other hand, profit levels are not high relative to the investment, but this has been the case for decades and has not caused problems due to farmer and farm family resilience.

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