Federal loans available for budding farmers
Budding farmers can now grow their business with a headstart with a new federal loan available for producers in Regional Queensland and across the country.
The Regional Investment Corporation (RIC) AgriStarter Loan has launched and loan applications are now open.
This loan will be used to both support new farmers to purchase, establish or develop their first farm business; and assist existing farm businesses with succession planning arrangements.
RIC CEO Bruce King said that the AgriStarter Loan provides affordable terms to support eligible new and intergenerational Australian farmers to purchase a new farm business, establish or develop their farm business or enter an existing farm partnership.
”The interest only repayments, at a low variable rate for the first five years will certainly appeal to new farm business owners to allow them to focus on establishing their operation and their cash flow,” Mr King said.
“The AgriStarter Loan can assist new farmers to buy, establish or develop a farm business, as well as help farming families undertake their succession planning.
“The AgriStarter Loan is also available to eligible farmers who have recently purchased a farm business yet need a loan to invest in infrastructure or machinery to develop their farm business and make it their primary income earning source.
“At the RIC, we believe the AgriStarter Loan will contribute to a stronger and more diverse agricultural industry through affordable finance for new Australian farmers.”
The AgriStarter Loan allows up to $2 million to be borrowed over 10 years with at least 50 per cent of an applicant’s total debt required to be held with their existing bank.
The first five years of an AgriStarter Loan are interest only, then the remaining five years are principal and interest repayments. The current variable rate is 1.92 per cent.
The Federal Government has provided $75 million for AgriStarter Loan applications this financial year. For more information about the AgriStarter Loan, including loan guidelines, eligibility criteria and the loan application form, click here.