Up to $1M is available from Dairy Recovery Concessional Loans to help farm businesses affected by the 2016 reductions in farm gate milk prices.
Dairy Recovery Concessional Loans
Dairy Recovery Concessional Loans are available to assist commercially viable dairy farm businesses affected by the 2016 decisions of Murray Goulburn, Fonterra and National Dairy Products to reduce farm gate milk prices retrospectively.
Dairy Recovery Concessional Loans will be delivered by different agencies in different states, on behalf of the Australian Government.
Loans of up to $1 million are available for a maximum of 10 years at a variable concessional interest rate of 3.09% (as at 1 August 2017).
Dairy Recovery Concessional Loans can be used for a combination of:
- debt restructuring
- providing new debt for operating expenses or
- providing new debt for productivity enhancement activities.
Eligible dairy farm businesses affected by the 2016 decisions of Murray Goulburn, Fonterra and National Dairy Products to retrospectively reduce farm gate milk prices can apply.
To be eligible, you must demonstrate that:
- you own and operate a dairy farm business
- your farm business supplied milk to either Murray Goulburn and/or Fonterra and / or National Dairy Products or their subsidiaries or related companies in 2015–16
- your farm business has existing eligible debt and has not already borrowed up to 50% of its total eligible debt (i.e. a farm business cannot access a dairy recovery loan worth more than 50% of their total eligible debt)
- your farm business is commercially viable in the long term
- your farm business has the capacity to repay the loan
- your farm business has the ability to provide sufficient security against the loan.
Please read the loan guidelines for full details on eligibility and how the loan application will be assessed. The guidelines are available on each delivery agency website.
Applications close 30 June 2018.