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Assis tance for WA growers affected by drought and other challenging threats
635 loans valued at more than $715 million has been made to farmers. BY DR IAN WILKINSON SENIOR RESEARCH SCIENTIST, DEPARTMENT OF PRIMARY INDUSTRIES AND REGIONAL DEVELOPMENT
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ederal Government funding is available to assist farmers and small businesses assisting farmers during periods where their operations are adversely influenced by drought and other unforeseen issues, including hail and pest damage.
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WA Grower SPRING 2020
Three funding streams are administered by the Regional Investment Corporation (RIC) — Drought loans for farmers, Farm Investment loans for farmers, and AgBiz Drought loans for small businesses. In the financial year ending 30 June 2020, 635 loans valued at more than $715 million had been made to farmers.
Loans for farmers and horticulturists Both farm loans are available to Western Australian farmers. Each allows for loans of up to $2 million, to be repaid over 10 years. The estimated processing time for the loan is six months or more from the time an application is completed. This is due to high demand — the RIC is working hard to improve those timeframes. Details of the criteria for the loans can be found at the weblinks provided at the end of this article. There are no eligible and non-eligible geographical areas defined for these loans.
3 DROUGHT and Farm Improvement loans can be utilised for the installation of netting to protect crops from the weather, and pest events.
The loans can be applied for at any time, at no cost, however, applicants must have 50 per cent or more of their debt with a commercial lender.
Frequency of repayments will be tailored to the cash flow of each business, with no fees for extra repayments, or for early settlement of the loan. However, no redraws are permitted on the loan. With both loans, applicants must be Australian citizens or permanent residents, contribute at least 75 per cent of their labour to the business, earn at least 50 per cent of their income from the business, and own or lease land used for farming purposes.
