Concessional loans open for Tasmanian farm businesses
Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce
Tasmanian Minister for Primary Industries and Water, Jeremy Rockliff
Senator for Tasmania, Jonathon Duniam
4 August 2017
- 2017–18 Farm Business Concessional Loans Scheme is now open to support eligible farm businesses in Tasmania
- $10 million is available across Tasmania
The Coalition Government today launched the 2017–18 Farm Business Concessional Loans Scheme in Tasmania, with an initial commitment of $10 million to support eligible farm businesses.
Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, said this was part of the government's $250 million commitment to delivering concessional loans for eligible farm businesses nationally from 1 July 2017 to 30 June 2018.
"Concessional loans will continue to be available to assist farmers across Tasmania to rebuild their businesses following drought and retrospective farm gate milk price cuts in 2016," Minister Joyce said.
"So far, almost $37 million in concessional loans have been approved to 58 farm businesses in Tasmania since 2013.
"For 2017–18, the Farm Business Concessional Loans Scheme will also be extended to eligible Farm Household Allowance recipients who have exhausted their 1,095-day entitlement.
"These Business Improvement Concessional Loans recognise that some farmers may need further assistance to achieve their farm business plans.
"The Coalition continues to deliver farm-strengthening initiatives from the $4 billion Agricultural Competitiveness White Paper, which had a $2.5 billion commitment to concessional loans over ten years."
Tasmanian Minister for Primary Industries and Water, Jeremy Rockliff, said that farmers were still recovering from two extremely difficult seasons of drought and flood.
“There is certainly signs of recovery throughout the State and the farm gate milk price has improved, and hopefully these loans will enable farmers to further develop their properties and employ more Tasmanians in regional areas.”
Senator for Tasmania, Jonathon Duniam, said the loans provided much-needed support and assistance to farmers getting back on their feet after facing tough times.
“Farms are the backbone of our regional communities and make a huge contribution to our economy,” Mr Duniam said.
"Our farmers contribute about $62.8 billion to our nation's economy and stronger farm businesses mean a stronger economy. Supporting viable farm businesses to better manage through drought and hardship is firmly in our national interest.”
The scheme is expected to be open in other jurisdictions shortly. For more information regarding concessional loans please go to: agriculture.gov.au/loans.
- $250 million in concessional loans funding is available to 30 June 2018.
- Three loan types: Drought Assistance, Dairy Recovery, Business Improvement.
- Loan amounts are for up to a maximum of $1 million in total, with an initial variable concessional interest rate of 3.09 per cent for a maximum term of 10 years. Interest-only repayments are available for the first five years of the loan term, with principal and interest repayments for the next five years.
- More than $724 million in concessional loans has been approved to 1,342 farm businesses nationally (as at 30 June 2017).