Farmers could soon get cheaper bank loans if they meet environmental targets.
BNZ's running a pilot partnership with Southern Pastures, to give the dairy investor discounts if it hits water quality targets and reduces carbon emissions.
The three year $50 million loan is the first farm sustainably-linked loan to be done in New Zealand.
Federated Farmers national board member, Chris Allen, told Kate Hawkesby one size fits all doesn't work these days.
"If the bankers agree it's a good investment and the farmer does, too, we should get in behind it."
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