Farm Business Concessional Loans Scheme
The Commonwealth and NSW governments are committed to supporting farmers and farm businesses, as well as the rural communities they help to sustain, to prepare for, manage through and recover from adverse conditions, including drought, and to become financially self-reliant.
The Farm Business Concessional Loans Scheme in New South Wales allows eligible Farm Businesses to access three types of loans - Drought Assistance Concessional Loans , Dairy Recovery Concessional Loans and Business Improvement Concessional Loans.
Under the scheme, the Australian Government is providing New South Wales with a total of $20 million for the provision of the Concessional Loans package for the 2017/18 application period.
The drought assistance aspect of the scheme assists eligible Farm Businesses in need of financial assistance to manage, recover from and prepare for droughts and maintain prospects for long term commercial viability. Drought Assistance Concessional Loans allows eligible Farm Businesses to access concessional finance for debt restructuring, providing new debt for operating expenses, drought recovery activities and drought preparedness activities, or a combination of these purposes.
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. Dairy Recovery Concessional Loans are available for debt restructuring, providing new debt for operating expenses or productivity enhancement activities, or a combination of these purposes.
The business improvement assistance aspect of the scheme recognises that, while a current or ex-Farm Household Allowance recipient was by definition in financial hardship, if a farmer has improved their financial circumstances then similar to those businesses affected by drought and/or the retrospective dairy pricing cut, the farm business may benefit from being able to reduce its interest payments by restructuring and refinancing existing loans.
NSW RAA will deliver the Farm Business Concessional Loans Scheme in New South Wales on behalf of the Australian Government.
Applications for the Farm Business Concessional Loans Scheme will close on 30 June 2018 or when funding is fully committed.