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Department of State Growth

AgriGrowth Loan Scheme

Including Young Farmer Support Package

The AgriGrowth Loan Scheme is an initiative of the Tasmanian Government providing low interest loans to Tasmanian farm businesses and agri-food businesses. It will support projects that advance the government's Agrivision 2050 plan which aims to increase the value of the agriculture and agri-food sectors in Tasmania.

The loan scheme will provide loans ranging from $100 000 to $3 million to fund projects that otherwise could not be brought forward and/or financed under normal banking arrangements.

Key features of the AgriGrowth Loan Scheme

  • Loans of up to $3 million for eligible farm business and agri-food businesses operating in Tasmania for projects that advance the Agrivision 2050 plan.
  • Generally loan amounts of less than $100,000 will not be considered under the scheme.
  • Loan amounts will be considered up to 80 per cent of a recognised valuation for freehold assets provided for loan security. Other non-freehold assets may also be considered for security.
  • The maximum loan term is normally up to 5 years. Longer terms up to 15 years may be considered in specific circumstances.
  • Variable concessional interest rates will apply (in the order of 5.49 per annum as at October 2023 for a maximum of 5 years).
  • Loans must be repaid in full or fully refinanced at the end of the agreed loan term.
  • Principal loan instalments will commence when cash flow is generated.
  • Applications will be assessed on the criteria contained within the guidelines.

Eligibility

To be eligible for an AgriGrowth Loan, you must be a Tasmanian Farm Business or an Agri-food Business where:

A Farm Business is defined as being involved in agriculture, horticulture, pastoral, apiculture, or aquaculture industries and may also be for the purpose of activities related to agri-tourism.

An Agri-food Business is classified as those businesses that transform, package or otherwise value-add to primary products that are marketable for human consumption. They are generally limited to businesses that employ 35 or fewer full time equivalents and have an annual turnover of $5 million or less.

On-farm worker accommodation required to support increased productivity on a commercial scale farm is considered an eligible activity under this Loan Scheme. The purpose must be for erecting a new building or modifying an existing building to provide on-farm worker accommodation, and the development must be ancillary (secondary) to the farm business. Developments for accommodation for farm stay accommodation (where the main purpose is tourism with paying guests) or for temporary accommodation (such as tents, caravans or campervans for residential accommodation) are not eligible.

All applicants will:

  • Operate as a sole trader, trust, partnership or private company.
  • Demonstrate a clear need for the loan, to the satisfaction of the Department of State Growth, and projects must advance the Government’s agri-growth agenda/policy.
  • Include a minimum three year business plan to the satisfaction of the department (in some cases the department may request that the applicant use a recognised consultant to assist with the plan).
  • Demonstrate ongoing financial viability with the loan application and business plan showing that the venture will be profitable within the agreed loan period.
  • The business must be registered for tax purposes in Australia with an Australian Business Number (ABN) and be registered for GST.

With regard to a Farm Business at least one member of the Farm Business must be a farmer who, under normal circumstances, generally contributes at least 50 per cent of his or her labour and will generally derive at least 50 per cent of his or her income from the Farm Business within the loan term.

Eligibility and assessment criteria are detailed in the AgriGrowth Loan scheme guidelines.

Young Farmer Support Package

The Young Farmer Support Package is to be read in conjunction with the AgriGrowth Loan Scheme.

Key features of the package include

  • Cost reductions
    • Waiver of loan establishment fees.
    • Capping of loan documentation fees to $500.
    • Enhanced concessional interest rates for the first two years of loan assistance.
  • More flexible security and loan arrangements
    • Unsecured or partially secured loans of up to $250 000 may be considered on a case by case basis.
    • Other non-freehold assets such as livestock, plant equipment or other tangible assets may be considered for security purposes.
    • Consideration of leasehold tenure as security where lease terms extend beyond five years.
    • Loan terms up to 15 years on a case by case basis.
  • Industry targeted dairy assistance
    • Young farmers wishing to progress from employee to share dairy farmer can access capped unsecured loans of up to $250 000.

Eligibility

In addition to the eligibility criteria for the AgriGrowth Loan Scheme a young farmer will:

  • Generally be no more than 45 years of age.
  • Preferably not previously been principal of a Farm Business and/or owned land for that purpose.
  • Have (or have close association with) suitable farming experience in, and/or knowledge of, the type of farming operation to be undertaken.
  • Be personally involved in the day to day operation of the Farm Business.
  • Be able to demonstrate an ability to manage financial affairs.
  • Be able to demonstrate, via a suitably prepared business plan, sound prospects and commercial viability.
  • Be able to demonstrate that, having assessed other commercially available financial assistance options and having regard to their available resources, they are in genuine need of concessional financial assistance.

Application guidelines

Application period

Applications will be ongoing until further advised by the Department of State Growth.

How to apply

Those wishing to apply should first speak to an Agribusiness Finance Manager by calling Business Tasmania on 1800 440 026.

An application form can be provided once eligibility has been confirmed.

Eligible applicants should lodge their completed application form including the required documentation to:

Agribusiness Finance Manager
AgriGrowth Loan Scheme
Department of State Growth
GPO Box 536
Hobart TAS 7001

or

Email: ask@business.tas.gov.au