BNZ backs farmers into their First Farm

When Ryan Laverock landed in New Zealand from South Africa in 2003, his family had $3,000 to their name. Today, he’s at the helm of multiple equity dairy farming partnerships in Southland and is passionately sharing his knowledge on herd and farm ownership as a BNZ First Farm mentor.

Ryan’s successful dairy progression pathway has been via a combination of roles. He started out on a dairy farm in the Waikato prior to roles within the banking sector and real estate with PGG Wrightson. Along the way, he bought into his first equity partnership in 2011 and now oversees two equity farms and 50/50 sharemilks on another.

As a mentor for the innovative BNZ First Farm mentoring programme, Ryan and his wife Jenny are passionate about demystifying the pathway to ownership – especially when cow values have doubled over two decades and farm prices in some districts leave aspiring first-farm owners feeling their dream is unobtainable.

“Opportunity still exists if people are strategic, humble and willing to learn,” says Ryan Laverock.

And BNZ is making it easier with their innovative First Farm proposition which helps lower barriers to entry for eligible first-farm buyers in the dairy sector, or those buying their first dairy herd, by reducing deposit requirements.

BNZ is backing aspiring dairy farmers by pairing them with an experienced farmer mentor for their first two seasons. This will help ensure their first steps into farm ownership or sharemilking are a success, with the ability to lean on an experienced farmer who has been through the highs and lows of herd or farm ownership and knows what it takes to make a farming business succeed.

BNZ First Farm matches mentors and mentees by region and experience, and provides toolkits, discussion guides and check-ins at key milestones so the relationship gets the attention it deserves.

BNZ General Manager Agribusiness and Corporate Banking, Dave Handley, says it’s about helping to make the transition between generations more attainable and sustainable.

“BNZ’s First Farm package is about bridging that knowledge gap by helping to make ownership more achievable.” – Dave Handley, BNZ General Manager, Agribusiness and Corporate Banking

“For many young farmers, getting their first foothold on the farming ladder is very challenging. BNZ First Farm is about bridging that knowledge gap by making ownership more achievable,” says Dave.

BNZ First Farm provides both more accessible bank funding with reduced deposit requirements¹ for eligible borrowers, as well as a structured mentorship for eligible first-time dairy farm buyers and those purchasing their first dairy herd for sharemilking.

Dave says every mentor-mentee relationship will be slightly different, with one-on-one support from a proven operator in key areas such as business planning, budgeting, cashflow, governance and people decisions, that can make a real difference to long term success from day one.

“Having someone in your corner with that hard-won experience, generously shared, will really make a difference for our next generation of dairy farmers to get their start.”

Ryan is realistic about the challenges but he says that while there may be rising costs, tight labour markets and milking cows at 4am every day, he advocates there remain great opportunities for growing equity in the dairy industry.

“You don’t have to own the best piece of land in town. It’s got to be a real, feasible situation that makes you money.” – Ryan Laverock, Southland dairy farmer & BNZ First Farm mentor

“You don’t have to own the best piece of land in town. It’s got to be a real, feasible situation that makes you money.”

As a BNZ First Farm mentor, Ryan sees his role less as a technical adviser and more as an advocate and translator – helping emerging farmers navigate negotiations with farm owners, advisers and banks, and find the confidence to speak up for a fair deal.

“Some people have really good characteristics but they’re never able to portray them. I don’t mind having those conversations.”

He’s particularly focused on helping sharemilkers and contract milkers understand what’s realistic when running a farming business – whether that’s controlling costs, structuring equity deals, or taking smaller, achievable steps into land ownership.

Industry surveys show only one third of New Zealand farmers have a formal succession plan in place and Dave says BNZ First Farm can also help to address the challenge of farm succession too.

For more information visit bnz.co.nz/business-banking/partners/agribusiness/first-farm-package

¹ Deposit requirements are assessed on a case-by-case basis.

Eligibility criteria, lending criteria, terms and conditions and fees apply. Approved borrowers will join the First Farm Mentorship Programme. The First Farm Package has limited availability and is subject to change.