“There’s cancelled orders everywhere.”Elgar isn’t alone in seeing farmers close their wallets as rising interest rates and inflation hammers the rural sector. Kelly Hodel/Stuff Waikato Federated farmers dairy chair Andrew Reymer says the cost of production for farmers has gone through the roof in the last 18 months. Interest costs surged 43%, fuel costs were up 29%, fertiliser costs shot up 28% and feed costs gained 23%. “So we are still expecting the Reserve Bank to put interest rates up, another 25 basis points or a quarter of a percent at the next review.”Kilsby said the interest rates were expected to hold at high levels through to the end of 2023. “We will sell bit through retired dairy farmers, but our clients are engineers, fertilizer (spreaders), mechanics, the endless economy that surrounds around all the farms.

Source: Stuff April 21, 2023 11:36 UTC