WA Government announces open applications for concessional farm loans

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Image credit: freedigitalphotos By: Serge Bertasius

The Government of Western Australia announced that WA primary industries’ businesses can apply for concessional loans through the Farm Finance Concessional Loans Scheme (WA) and that applications will be assessed in order of receipt.

Image credit: freedigitalphotos By: Serge Bertasius
Image credit: freedigitalphotos By: Serge Bertasius

According to the media release issued by Agriculture and Food Minister Ken Baston on Monday, the $50 million scheme is funded by the Australian Government with the sole intention of supporting and enhancing the productivity of broadacre, pastoral, horticulture, dairy, intensive agriculture and aquaculture businesses.

“WA farm businesses will be able to apply for loans between $50,000 and $200,000 at the concessional commencement rate of 4.5%. This means at least 250 farm businesses will be able to use these loans to improve the productivity of their operations,” said Minister Baston.

“These loans are not for restructuring existing debts or for carry-on finance for day-to-day operations, rather they are for investments that will enhance business productivity. This may include the purchase of breeding livestock; fencing; soil treatment work such as the application of lime; or, the purchase of modern technology such as GPS mapping systems.”

Further, Minister Baston revealed that the scheme will be administered by the Rural Business Development Corporation on behalf of the Western Australian Government.

Adertisement

Dry seasons, market access difficulties, as well as terms of trade and the high Australian dollar are just a few of the challenges farm businesses face.

“When farm businesses experience a combination of these challenges, they often draw down their non-farm assets to ensure the ongoing success of their operations,” Minister Baston said.

According to the terms of application, a net non-farm asset threshold of $421,500 will apply for all and all applicants must not have more than $400,000 in liquid assets such as shares, Farm Management Deposits and cash on their bank account.

The loans will be interest-only at the concessional rate with principal repayment at the end of the loan term.

For more information visit http://www.agric.wa.gov.au/