Dairy and Drought Recovery Concessional Loans
The Drought Recovery and Dairy Recovery Concessional Loans Scheme allows eligible Farm Businesses to access two types of loans – Drought Recovery Concessional Loans, to recover from the effects of drought, and Dairy Recovery Concessional Loans, to assist Dairy Farm Businesses impacted by the 2015–16 reduction in milk prices.
The Drought Recovery aspect of the scheme recognises that parts of Australia are experiencing unprecedented drought conditions, the financial impacts of which are beyond the ability of some, otherwise viable, Farm Businesses to manage and recover from. The Dairy Recovery aspect of the scheme recognises that the May 2016 decision of Murray Goulburn Co-operative Co. Ltd or its subsidiaries or related companies (Murray Goulburn) and Fonterra Co-operative Group Ltd or its subsidiaries or related companies (Fonterra) to reduce the farm gate price of milk is having a severe impact on some Dairy Farm Businesses, resulting in widespread uncertainty and likely future hardship across the dairy industry.
Under the scheme, the Australian Government has provided New South Wales with $50 million in 2014–15 and $25 million in 2015–16 for the provision of the Drought Recovery Concessional Loans Scheme. Additional funding is being made available for the provision of the Drought Recovery and Dairy Recovery Concessional Loans Scheme.
Drought Recovery Concessional Loans can be used for the purposes of Planting and/or Restocking drought recovery activities (as seasonal conditions allow) and associated expenses (including refinancing elements of an existing Drought Concessional Loan provided for Operating Expenses and/or Drought Recovery and Preparedness Activities).
Dairy Recovery Concessional Loans are available for the purposes of Debt Restructuring, providing new debt for Operating Expenses or Productivity Enhancement Activities, or a combination of these.
The Drought Recovery and Dairy Recovery Concessional Loans Scheme in New South Wales will be delivered by the NSW RAA using funds provided by the Australian Government.