November 26, 2015
Applications are now open for the latest round of The Australian Government Drought Concessional Loans Scheme. This Scheme aims to assist Victorian farmers who are currently experiencing a significant financial impact as a result of the effect of drought.
Rural Finance is the delivery agent for the Scheme in Victoria on behalf of the state government.
In short, the Scheme will offer:
- Loans for the purpose of:
- re-structure of existing eligible farm debt,
- funding operating expenses necessary to continue normal operations and/or
- drought preparedness and recovery activities.
- Concessional loans for a term of five years.
- A variable interest rate of 3.05% effective October 2015.
- A maximum loan amount of $1,000,000 (capped at 50% of total eligible farm debt).
- A total pool of $30 million for loans to Victorian farmers.
This scheme is designed to assist farming operations that have been operating for at least three years and have experienced significant financial impact as a result of the effects of drought, but have good long-term prospects of returning to profitable trading and sustainable debt levels.
Loan applications will be assessed in order of receipt. Applications will only be accepted if they are fully completed and submitted with all mandatory supporting information required (see Application form).
Bureau of Meteorology Rainfall Deficiency Report
A valid Bureau of Meteorology Rainfall Deficiency Report must be submitted as part of an application. This report identifies those areas that have experienced either a rainfall deficiency which is equivalent to, or worse than, 1 in 20 years or 1 in 10 years.
If your farm business is not located in either of the above rainfall deficient areas as determined by the Bureau of Meteorology, you are not eligible for assistance under the Drought Concessional Loans Scheme.
To obtain a Rainfall Deficiency Report, locate your farm business on the map and download a report using the Bureau of Meteorology - Australian Rainfall Deficiency Analyser.
To locate your farm business on the map, enter latitude and longitude coordinates of your farm business or you can zoom and click on the location of your property on the map. Once you have located your farm business, the option to download a Rainfall Deficiency Report becomes available. The latitudes and longitudes of your farm business can be obtained from a hard copy map, smartphone application or internet search.
The Rainfall Deficiency Report will be valid for a period of 60 days and forms part of the loan application. If the application cannot be lodged within the 60 day period a new report must be obtained.
Please note that the Australian Rainfall Deficiency Analyser is updated on the 23rd of each month (or next business day).
Need more help?
Please refer to the FAQ - Drought Concessional Loans Scheme for further information about the scheme.
If you have any immediate queries about the Australian Government’s Drought Concessional Loans Scheme, please call Rural Finance in Victoria or contact us.