BNZ backs young farmers with mentoring and flexible finance
BNZ is helping aspiring dairy farmers take their first step into ownership, unveiling a new First Farm initiative that combines reduced-deposit lending with one-on-one mentorship from experienced farmers.
The launch comes as lending conditions across New Zealand’s rural economy remain tight, with many young farmers struggling to meet deposit requirements despite recent interest rate cuts – even as wider business sentiment begins to improve.
The programme is designed to lower barriers to entry for first-farm buyers and first-time herd owners, making the path to ownership or sharemilking more achievable while ensuring participants receive guidance during their crucial early years.
Reduced deposits and hands-on mentoring
Under the First Farm proposition, eligible customers will benefit from reduced deposit requirements when purchasing their first dairy farm or herd.
Each successful applicant is also paired with an experienced farmer mentor for their first two seasons, providing personalised support in areas such as financial planning and business management.
Dave Handley (pictured right), BNZ general manager agribusiness and corporate banking, said the programme recognises the central role of farmers in New Zealand’s economy.
“For many young farmers, getting their first foothold on the farming ladder is very challenging. First Farm is about bridging that gap by making ownership more achievable,” Handley said in a media release.
He said the initiative extends beyond financing, with mentoring at its core.
“Every farming customer participating in our First Farm programme will be matched with an experienced farmer mentor who has been through the highs and lows of herd or farm ownership and knows what it takes to make a farming business succeed,” Handley said.
“Every mentor-mentee relationship will be slightly different. But the one-on-one support from a proven operator in key areas such as business planning, budgeting, cashflow, governance, and people decisions will make a real difference from day one. Having someone in their corner with that hard-won experience, generously shared, will really make a difference for our industry participants.”
Supporting succession and sustainable growth
BNZ says First Farm aims to help tackle one of the sector’s biggest challenges – farm succession.
“Industry surveys show only one third of New Zealand farmers have a formal succession plan in place,” Handley said. “We know there are opportunities to make the next step into ownership more straightforward for the next generation while ensuring valuable farming knowledge isn’t lost.”
He said the programme’s dual approach – accessible bank funding and structured mentorship – helps bridge the gap between generations.
“First Farm does both through more accessible bank funding and structured mentorship which connects experienced farmers with those striving to purchase their first farm or herd, making the transition between generations both more attainable and sustainable,” Handley said.
Nationwide rollout and future expansion
First Farm is available nationwide to eligible first-time dairy farm buyers and first-time herd purchasers for sharemilking. Each mentor-mentee pairing is matched by region and experience, with access to BNZ toolkits, discussion guides, and milestone check-ins to ensure consistent support.
While the programme currently focuses on dairy, BNZ plans to expand similar initiatives into other agricultural sectors in future.
For advisers, BNZ’s First Farm approach underlines a broader trend: banks are increasingly designing sector-specific finance solutions that blend capital access with practical capability-building – a strategy that could reshape the way lenders and brokers collaborate to support new entrants across industries.
To learn more or enquire about eligibility, visit BNZ’s agribusiness hub: bnz.co.nz/business-banking/partners/agribusiness.
Stay informed with the latest housing market trends and mortgage insights – subscribe to our free daily newsletter.
