1 00:00:01,840 --> 00:00:05,080 Speaker 1: The Rural Report on hither do for Cee Allan Drive 2 00:00:05,559 --> 00:00:07,680 Speaker 1: ha seen past six and Jamie mckaye, Host of the 3 00:00:07,680 --> 00:00:11,760 Speaker 1: Countries with us Helo Jamie Good. So Federated Farmers like 4 00:00:11,760 --> 00:00:13,360 Speaker 1: the fact that the Reserve banks having a look at 5 00:00:13,360 --> 00:00:15,000 Speaker 1: those bank capital rules. 6 00:00:15,080 --> 00:00:19,560 Speaker 2: Yeah, yeah, exactly. I mean I think Adrian Or's respra 7 00:00:19,560 --> 00:00:21,960 Speaker 2: old Adrian, He's right in the firing line at the moment, 8 00:00:22,040 --> 00:00:24,320 Speaker 2: isn't he? He was responsible for this one or it 9 00:00:24,440 --> 00:00:28,360 Speaker 2: certainly happened under his watch that banks had to require 10 00:00:28,640 --> 00:00:32,720 Speaker 2: enough capital to withstand a one and two hundred year shock. 11 00:00:32,760 --> 00:00:35,680 Speaker 2: And I guess the double whammy for the likes of 12 00:00:35,720 --> 00:00:38,280 Speaker 2: the farmers was they had to hold twice The banks 13 00:00:38,280 --> 00:00:42,240 Speaker 2: had to hold twice as much capital for rural lending 14 00:00:42,280 --> 00:00:44,960 Speaker 2: as they did for residential on heather. There's a real 15 00:00:45,000 --> 00:00:47,559 Speaker 2: irony in that. At the moment is Auckland and Wellington 16 00:00:47,640 --> 00:00:54,320 Speaker 2: house prices fall and probably becoming risky investments compared to 17 00:00:54,560 --> 00:00:57,440 Speaker 2: farm prices that are going up. So yeah, the Federated 18 00:00:57,480 --> 00:01:02,440 Speaker 2: Farmers banking guy Mark Cooper has taken from Richard McIntyre 19 00:01:02,600 --> 00:01:05,679 Speaker 2: both Calcock. He's both done a really good job on this. 20 00:01:05,760 --> 00:01:09,040 Speaker 2: The feed save in fact, and they're glad that they've 21 00:01:09,040 --> 00:01:12,640 Speaker 2: got this through or it's going to be looked at. Look. 22 00:01:12,680 --> 00:01:15,480 Speaker 2: I think the biggest surprise for me, Heather, was yesterday 23 00:01:15,480 --> 00:01:18,040 Speaker 2: morning when the PM was talking to Mike Cosking and 24 00:01:18,080 --> 00:01:21,360 Speaker 2: he was, you know, putting his ore or putting a 25 00:01:21,400 --> 00:01:24,399 Speaker 2: spanner in the works. Almost there, and he's on my 26 00:01:24,480 --> 00:01:26,840 Speaker 2: show tomorrow. I'm going to ask him this. Did he 27 00:01:27,040 --> 00:01:29,000 Speaker 2: did he overstep the mark? I mean, good on him. 28 00:01:29,040 --> 00:01:32,080 Speaker 2: I think he's exactly right. But it's meant to be 29 00:01:32,160 --> 00:01:34,800 Speaker 2: the Reserve Banks meant to be an independent entity. And 30 00:01:35,000 --> 00:01:37,479 Speaker 2: maybe the Prime Minister got into their air and shoot 31 00:01:37,480 --> 00:01:39,200 Speaker 2: at big time knows who knows? 32 00:01:39,440 --> 00:01:41,960 Speaker 1: Hey, how good is this price looking now that the 33 00:01:42,000 --> 00:01:43,120 Speaker 1: Bager group have settled. 34 00:01:44,240 --> 00:01:46,559 Speaker 2: Well, it was what about three point eight four billion, 35 00:01:46,600 --> 00:01:48,560 Speaker 2: which is a hell of a lot of money. It's 36 00:01:48,600 --> 00:01:51,520 Speaker 2: now four point two two billion. I heard you talking 37 00:01:51,560 --> 00:01:54,680 Speaker 2: about it. I think between four and five Heather. Yes, 38 00:01:54,720 --> 00:01:57,200 Speaker 2: So they got the licenses, they agreed on that one. 39 00:01:58,280 --> 00:02:01,600 Speaker 2: It's great. The font are still targeting, by the way, 40 00:02:01,640 --> 00:02:05,560 Speaker 2: a capital return of two dollars per share for the 41 00:02:05,600 --> 00:02:10,000 Speaker 2: Farmer shareholders. So of that four point two billion, three 42 00:02:10,080 --> 00:02:13,560 Speaker 2: point two billion of it will be a capital distribution 43 00:02:13,919 --> 00:02:17,119 Speaker 2: providing of course the farmer shareholders vote for it, and 44 00:02:17,919 --> 00:02:21,040 Speaker 2: turkeys don't vote for an early Christmas in the fight. 45 00:02:21,320 --> 00:02:23,320 Speaker 2: That's not a good example, and the farmers will be 46 00:02:23,320 --> 00:02:26,520 Speaker 2: thinking I'm calling them turkeys there, but complete, the complete, 47 00:02:26,520 --> 00:02:29,080 Speaker 2: the opposite. This is Christmas for the farmers, and I 48 00:02:29,160 --> 00:02:31,960 Speaker 2: know that theoretically some of them are saying, look, we 49 00:02:32,000 --> 00:02:34,760 Speaker 2: should be keeping our consumer brands. But you'd have to 50 00:02:34,800 --> 00:02:38,760 Speaker 2: back Miles Hurr or Peter McBride and the team at Fonterra. 51 00:02:38,800 --> 00:02:42,079 Speaker 2: They're doing a pretty good job. This three point two billion, 52 00:02:42,120 --> 00:02:44,720 Speaker 2: A lot of it will go to paying down debt. 53 00:02:44,800 --> 00:02:47,080 Speaker 2: Remember that even though the shares were trading up to 54 00:02:47,160 --> 00:02:50,160 Speaker 2: six bucks today, some of those farmers bought shares six 55 00:02:50,320 --> 00:02:52,800 Speaker 2: or seven or even eight dollars when they picked. So 56 00:02:52,800 --> 00:02:54,720 Speaker 2: they're going to pay down a bit of debt. But 57 00:02:54,800 --> 00:02:57,040 Speaker 2: also I think there's a lot of pent up capital 58 00:02:57,080 --> 00:03:01,919 Speaker 2: expenditure that needs to happen on farms, talking about replacement tractors, 59 00:03:02,280 --> 00:03:07,280 Speaker 2: maybe capital fertilizer. You combine that with lower interest rates 60 00:03:07,400 --> 00:03:11,959 Speaker 2: and better returns, and I think this farming season twenty 61 00:03:12,040 --> 00:03:14,040 Speaker 2: five twenty six is going to be a ripper. 62 00:03:14,240 --> 00:03:15,800 Speaker 1: Have you figured out how much you're going. 63 00:03:15,720 --> 00:03:22,919 Speaker 2: To get we you mean me a dairy farmer. Well, Heather, 64 00:03:23,240 --> 00:03:25,520 Speaker 2: I'll let you in on a week secret. I'm in 65 00:03:25,600 --> 00:03:29,880 Speaker 2: an equity partnershops, so I'm only one vote in six 66 00:03:30,840 --> 00:03:33,480 Speaker 2: back in the day and I voted the other way, 67 00:03:33,480 --> 00:03:35,520 Speaker 2: but you've got to go with majority. We sold our 68 00:03:35,560 --> 00:03:40,440 Speaker 2: Fonterra shares and we supply Open Country and honestly, Open 69 00:03:40,480 --> 00:03:43,760 Speaker 2: Country a very good company to supply as well. 70 00:03:44,000 --> 00:03:47,280 Speaker 1: Watertime, Jamie, thank you very much, appreciate it. Jamie McKay, 71 00:03:47,400 --> 00:03:48,200 Speaker 1: Host of the Country. 72 00:03:48,840 --> 00:03:52,040 Speaker 2: For more from Heather Duplessy Allen Drave, listen live to 73 00:03:52,120 --> 00:03:55,160 Speaker 2: News Talks it'd be from four pm weekdays, or follow 74 00:03:55,200 --> 00:03:56,960 Speaker 2: the podcast on iHeartRadio.