$30m boost for farmers

MCMILLAN MP Russell Broadbent has welcomed a Federal Government commitment of an extra $30 million in concessional loans for Victorian farmers.
The announcement was made by Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, who said the extra funds were needed to help farm businesses rebuild from drought and the downturn in dairy prices.
Mr Broadbent said $100 million has now been allocated to Victoria since the Farm Business Concessional Loans Scheme began late last year, with 156 Victorian dairy farmers approved for over $84 million in Dairy Recovery Concessional Loans to March this year.
“There is little doubt many farmers in McMillan have been doing it tough, especially those in the dairy industry. This is not a handout, but rather a hand up to an industry that remains absolutely vital to this region,” he said.
“While much of McMillan’s continuing financial and social success is tied to the fortunes of the farming community, more broadly, our farmers are part of an industry that contributes almost $64 billion to our nation’s economy.
“Farming and farmers are essential drivers of the Australian economy.”
Farm Business Concessional Loans have an initial variable concessional interest rate of 2.47 percent 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.
“The Farm Business Concessional Loans enable farmers to refinance existing debt, fund normal operations and bankroll activities to increase productivity to build their businesses back up,” Mr Joyce said.
“There are two loan types, Drought Assistance for drought affected farm businesses and Dairy Recovery concessional loans to assist eligible farmers affected by the decisions of Murray Goulburn, Fonterra and National Dairy Products to retrospectively reduce farm gate milk prices.
“The Dairy Assistance Package is having a strong positive impact in Victoria over the past year where more than $84 million in Dairy Recovery Concessional Loans have been approved to assist 156 dairy farm businesses.
“We have made available $250 million in concessional loans funding nationally this financial year to assist farmers to rebuild their businesses following drought and retrospective farmgate milk price cuts, part of a $2.5 billion, 10–year commitment to concessional loans.
“In the 2017–18 Budget, the Coalition Government announced it will extend concessional loan eligibility to farmers who have exhausted their full three year entitlement to the Farm Household Allowance and can use this support to continue improving their long term financial strength.”
“Supporting viable farm businesses is firmly in our national interest, which is why the government is delivering on its commitment to establish the Regional Investment Corporation in the 2017–18 Budget.
“The RIC will administer the government’s remaining $2 billion investment in concessional loans from 2018–19, as well as the $2 billion National Water Infrastructure Loan Facility.
“Until the RIC is fully operational in July 2018, it is intended that Victorian farm businesses will be able to continue to apply for concessional loans through Rural Finance.”
To find out more about concessional loans in Victoria please contact Rural Finance on 1800 260 425 or visit ruralfinance.com.au
For more information on the range of Australian Government assistance for farmers, farm businesses and rural communities, visit agriculture.gov.au/assistance

Rural focus: McMillan MP Russell Broadbent is urging farmers to access concessional loans.

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Posted by Sarah Vella on May 30 2017. Filed under Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry