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Dairy Recovery Concessional Loans
Dairy Recovery Concessional Loans are in initiative of the Australian Government to assist eligible commercially viable dairy farm businesses through the short-term crisis caused by the May 2016 decision of Murray Goulburn and Fonterra to reduce farm gate milk prices.
The loans will be delivered as part of the Farm Business Concessional Loan Scheme. Under the scheme the Australian Government has provided Tasmania with a total of $15 million for the provision of both the Dairy Recovery Concessional Loans and Drought Assistance Concessional Loans.
Loans up to a maximum value of $1 million are available. The Department of State Growth/Tasmania Development and Resources will assess and decide if applications are eligible through a non‑competitive first-come first-served selection process.
Key features of the Dairy Recovery Concessional Loan Scheme
- Loans are for eligible farm businesses for the purpose of debt restructuring, new debt for operating expenses or productivity enhancement activities or a combination of these.
- Loan amounts will be up to 50 per cent of a farm business’s final debt position to a maximum of $1 million in total.
- A maximum 10 year loan term.
- A concessional variable interest rate will apply for the 10 year loan term.
- The interest rate is set by the Australian Government. As at 1 November 2016 is 2.47 per cent.
- Interest only payments are available for the first five years of the loan.
- Interest and principal repayments are required for years six to 10.
- Loans must be fully repaid or refinanced at the end of the agreed loan term.
- Applications will be assessed on the criteria included in the guidelines.
To be eligible for a Dairy Recovery Concessional Loan an applicant must demonstrate that they meet the Dairy Recovery Concessional Loan eligibility criteria.
Detailed information about the eligibility and assessment criteria is available in the Dairy Recovery Concessional Loans Scheme Guidelines.
The application period for Dairy Recovery Concessional Loans has now closed.