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15 June 2016: Drought Concessional Loan Applications Extended Across Australia

15 June 2016

The Coalition Government today renewed its commitment to supporting drought-affected farmers by extending the application period for 2015–16 drought-related concessional loans to 31 October 2016.

Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce said the loans offered essential support for those doing it tough during drought to restructure existing debt, fund operating expenses or drought preparedness and recovery activities.

“The Coalition Government is committed to ensuring that our farmers have certainty about the support available to them during periods of drought,” Minister Joyce said.

“We have delivered on that commitment through the Agricultural Competitiveness White Paper’s $2.5 billion concessional loans scheme, which provides up to $250 million in loans each year across the nation over the 10 years from 2016–17.

“It is essential that there is continuity in the availability of this assistance to eligible farm businesses, with over 800 farm businesses across the country already having concessional loans approved valued at more than $438 million.

“That is why the Coalition Government is extending the application period for these loans schemes to ensure the availability of support for farmers beyond the federal election period to allow time for the 2016–17 drought concessional loans schemes negotiations to be finalised with states and territories.

“To ensure adequate funds are available over the extended period, the Coalition has allocated an extra $10 million in drought and $5 million in drought recovery concessional loans to support farmers in Queensland.

“I am delighted the governments of Queensland, New South Wales, South Australia, Tasmania and Western Australia have agreed to offer these loans for an extended period,” Mr Joyce said.

“Almost half of all farmers approved for concessional loans this year have been Queenslanders, which is a sign the lower interest rates and ability to access funds to rebuild from drought are making a difference in this state.”

Minister Joyce said Drought Concessional Loans are available at 3.05 per cent for an interest-only term of five years, while Drought Recovery Concessional Loans are available at 2.71 per cent, falling to 2.66 per cent on 1 August, for 10 year loan terms with interest-only repayments available for the first five years.

The Drought Concessional Loans Scheme is open for applications in New South Wales, Queensland, South Australia, Victoria, Tasmania, Western Australia and the Northern Territory.

The Drought Recovery Concessional Loans Scheme is open for applications in New South Wales, Queensland and South Australia. Victoria and the Northern Territory have not yet confirmed their agreement to extend the concessional loan application period to 31 October 2016.

Full details of Australian Government assistance available to farmers, including drought-related concessional loans, is available on the Department of Agriculture and Water Resources website: www.agriculture.gov.au/assistance.

This media release has been generated by the Australian Government Department of Agriculture and Water Resources

Last updated
10 May 2017