As part of this week’s “News Maker” show of Sarah’s Country, Dana Muir from BNZ discusses New Zealand’s first farm sustainability-linked loan and explains why capital incentives can deliver financial and environmental benefits.

In a New Zealand first, ethical dairy investor Southern Pastures has entered into a three-year $50 million sustainability-linked farm loan with BNZ and its syndicate.

Southern Pastures, owner of Lewis Road Creamery, will receive financial incentives for meeting new water quality and biodiversity targets and for achieving further reductions in its already low on-farm carbon emissions. Achievement of the targets will be directly linked to lower loan costs.

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