Westpac's new Head of Agribusiness, Tim Henshaw.
Banks need to play a wider role supporting farmers and growers, says Westpac's new head of agribusiness Tim Henshaw.
He moved into the job in October after a 17-year career with the bank.
He spent the prior four years as head of corporate business relations.
His agribusiness role is a return to his roots: "I grew up on farms and know the sector first-hand. We've got some fantastic people running great farming businesses. Yet we know farming is an isolating life. Farms are often a long way from town. You or your family might be busy running that farm, but day-to-day you don't see many other people."
Modern farming is a complex business. There is a lot involved in running a farm. Farmers can be time poor; they can't do everything.
Henshaw says this is an opportunity for his team to step in and provide help.
He sees a support role connecting with farmers and growers by being their window into what is happening in the region, across the country and overseas. He says Westpac can help them look forward into the future. "They don't necessarily have the time to sit down and research".
This support now goes well beyond helping farmer to run a business. Today it stretches to helping with wellbeing and the wider social issues affecting the bank's rural customers.
"Westpac is focused on the wellbeing aspects of our rural communities. That's one of the reasons we're very proud to have Sir John Kirwan as an ambassador. He goes into the rural communities and regions to talk to people about wellbeing, how to recognise the signs of mental illness and where to go for help."
Henshaw says another Westpac ambassador, Willie Apiata VC, was with Westpac at this year's Fieldays. "We had him talking about resilience, self-care and checking in on yourself. We think these things are an important part of banks supporting farming communities."
While wellbeing is Westpac's focus, Henshaw says the bank also gets involved in social problem areas such as domestic violence. "There's a drive on this from the top. Former chief executive David McLean, acting CEO Simon Power and the executive team have been behind it. We find it resonates with our people. They can see the organisation they work for is taking on these things and elevating the conversation."
Westpac is one of five large players in New Zealand rural banking. There are the four major banks along with Netherlands-based Rabobank. Kiwibank has a smaller presence.
All the banks are reducing branches throughout the country.
It's an issue that concerns farmers.
Henshaw says a Federated Farmers survey found while only a small number of farmers report they would be impacted by branch closures, the members are concerned about the likely effect on other people in their communities. The banks are testing ways of reducing the impact of closures.
There's a banking hub trial occurring in four places across the country. All the banks have their smart ATMs and other technology in those places. While that trial is happening, the six banks taking part of it have committed to no closures of branches and rural areas for the rest of this year.
"It's a tough one. We know Westpac customers want to interact with us, yet there are 100 internet log-ons for every branch transaction. We still have a team of bankers in the regions who are driving up driveways, sitting down with farmers and having a cup of tea.
This will be why farmers feel the branch closures have a less direct effect on them.
Henshaw says the Federated Farmers survey showed Westpac has good support from its customers. "We rated well on satisfaction. I'm lucky to be leading a team of people who have experience with the primary sector. We hear from our customers that Westpac knows farmers and knows what is happening on the farm.
"Another strength we have in the sector is consistency backing our farmers and grower customers through the inevitable primary sector cycles. Backing customers through the tougher times and those critical moments when there's a once-in-a-lifetime opportunity to purchase a neighbouring farm is important."
Henshaw says a key part of getting this right in the tough times is to help customers prepare when the cycle is on the upswing.
"If, say, the milk price is at a high, the conversation will turn to ensuring that the business is resilient to cope with the next reductions. It could be any one of a range of things such as paying back debt to shore up the balance sheet or investing in improvements such as dealing with effluent or making upgrades. It could be as simple as banking some savings so there is money for when payouts are not so good."
Sustainability focus
Looking forward Henshaw says he is looking to boost Westpac's sustainability credentials. "The direction is clear on the sustainability front. All business sectors agree, including agribusiness. It is where we are thinking hard about how we support farmers and growers as they transition towards meeting their requirements. This includes matters like the freshwater policy and what is happening with on-farm emissions. This comes back to helping the business build resilience."
Henshaw has created a new role on his leadership team: senior manager — research.
He has moved a banker, who is also a farmer, to take up the position. He is leading the bank's sustainability workstream.
"There is so much coming at our farmers. We need to be able to share ideas and show them what a sustainable farm might look like. They will need help to finance those changes as well. It could be converting a less productive area of the farm to exotic or native forestry or diversifying production. The sooner you start making those plans, the easier it is to make them work. We know some farmers are doing a fantastic job on this, but we want to help spread that knowledge."
