The below questions and answers relate to the Drought Infrastructure Fund (formerly known as the Farm Innovation Fund):

What is the Drought Infrastructure Fund?

The Drought Infrastructure Fund loan helps primary producers to identify and address risks to their farming business, improve permanent farm infrastructure and ensure long-term productivity and sustainable land use, aiding in meeting changes to seasonal conditions.

Who can apply for the Drought Infrastructure Fund loan?

The Drought Infrastructure Fund is available to farmers in NSW to meet the cost of carrying out permanent capital works that will have a significant beneficial impact on the land, long term profitability of the business and address adverse seasonal conditions. To be eligible for the loan all of the eligibility criteria as stated in the program guidelines must be met.

What’s the easiest way to apply for the loan?

The easiest way to receive your loan is to apply online. We recommend wherever possible you complete your application through the online portal.

How long do I have to apply?

There is no cut off time to submit your application, however, loans will not be offered beyond the allocated funding. Please note that you must lodge an application before commencing the project.

Can I apply for the loan after I have completed the works?

No, you must lodge an application before commencing the project.

Can I send in an application whilst waiting on information from my bank?

Yes, although your loan will not be assessed until your application is complete.

How much can I apply for and how long do I have to repay the loan?

A loan of up to $1,000,000 is available per application and up to 100% of the net, GST exclusive cost of the works can be borrowed.

The maximum loan term is 20 years with monthly, quarterly, bi-annual and annual annual repayments of principal and interest.

How long do I have to draw down on the loan once my application is approved?

The loan must be fully drawn down within 12 months after the application is approved.

What information do I need to provide with my application?

Applicants must provide a complete application form and a copy of the following documents;

• Signed Mortgagees Consent Form from your existing mortgagee
• Last three years balance sheets and financial statements of your farm enterprise (these include profit and loss statements, stock trading account and depreciation schedules)
• Last 3 years individual taxation returns and a current listing of all assets and liabilities held by each: individual members of a partnership/ family trust and individual director(s)/shareholder(s) of all companies
• Farm Business and Risk Assessment Plan
• Trust deed (if applicable)
• Monthly cash flow budget for the next 12 months
• Copy of current LGA (council) rates and LLS rates notice(s) for property(s) where the work is to be completed

Ensure that your documents are scanned individually as they will need to be uploaded to specific sections throughout the form. Please note that the online form has file size restrictions (approx. 20MB total). For each attachment please ensure the file size is 2.5MB or less to avoid submission issues.

Can primary producers that have been in operation less than three years, and therefore cannot provide the required three years of
financial information, still apply?

You are classified as a “new entrant”, meaning that you have been operating your farm business for between 12 months to three years and more than 50% of your gross income will be derived from the farm business within three years of the date of the application. The applications of new entrants will be considered on a case by case basis.

Does a mortgage get taken over my property?

No, a Statutory Charge and registered caveat will be placed over the property where the works are to be carried out. Additional or alternate property may be considered. Your bank will need to sign and stamp the lenders consent form to support your
application. As part of the assessment process, the authority will obtain title searches to confirm ownership of the land offered as security. The cost of the searches is charged to the applicant whether or not they take up the loan.

Are lease-holders eligible for Drought Infrastructure Fund loans?

Drought Infrastructure Fund loans are ordinarily available for primary producers who own and operate the business, and own or are in the process of purchasing, the land upon which the farming occurs and upon which improvements are proposed. However, a loan will be considered for lease-holders where they:

• have been leasing on that land for more than three years
• have written approval from the land-owner for the proposed works
• can provide adequate security and demonstrate ability to repay the loan.

What can the loan be used for?

The Drought Infrastructure Fund can be used to carry out permanent capital work that will have a significant beneficial impact on the land, address adverse seasonal conditions and support long-term profitability of the business.

Some examples include, but are not limited to:

• Stock and domestic water supply
• Capping and piping of bores
• Planting perennial species
• Soil conservation
• Erosion control
• Noxious weed control
• Solar power conversions
• Fodder storage facilities (silos and hay sheds)
• Farm/shearing sheds
• Fencing
• Road works
• New/upgrades to irrigation systems
• Disaster mitigation works (flood pads etc)
• Planting trees for shade/wild life corridors

How do I access the funds once approved?

You will need to sign and submit an ‘Authority to Pay’ form along with your Tax Invoices to the RAA. Payment will be processed to your nominated bank account. The RAA will not pay to the supplier directly.

Is GST included in any payment received?

No. The GST component of any invoice received can be claimed on completion of your Business Activity Statement (BAS). The RAA will not issue a Recipient Created Tax Invoice (RCTI) on payment of the rebate and you should retain the ‘Payment Advice’ that is
forwarded as a record for taxation purposed.

What is the interest rate and can my interest rate change?

The current interest rate is 2.5% and is fixed from the date of approval and will remain the same for the life of the loan.

How does the RAA protect itself against fraud?

The RAA has a strong commitment to fraud prevention, detection, and response. Making a fraudulent application, including providing false or misleading information is a criminal offence which carries a maximum penalty of 2 years imprisonment, or a fine of $22,000, or both.

The RAA will also attempt to recover any assistance received as a result of fraud. More information can be found on our Fraud and Corruption page.

Who can help with my application?

If you have any questions about this program you can contact our team by calling 1800 678 593 or emailing rural.assist@raa.nsw.gov.au.

If you have difficulty understanding the guidelines or completing the application form you should seek the assistance of your rural/financial counsellor, business advisor, accountant or a trusted family member/friend. If you need assistance with interpreting or translating, please contact Multicultural NSW on 1300 651 500 or email languageservices@multicultural.nsw.gov.au.

If you are experiencing any issues completing the form, free confidential assistance is available from your local Rural Financial Counselling Service (RFCS). For more information, visit the RFCS website or call:

• Northern region: 1800 344 090
• Southern and Central region: 1800 319 458