Transport Fund To Assist Drought-affected Farmers In New South Wales
23 May 2018
A scheme to assist drought-affected farmers in New South Wales has been unveiled as more than a quarter of the state deals with worsening dry conditions.
The NSW Drought Transport Fund will provide up to $20,000 in low-interest loans, with a two-year interest and repayment-free period.
The fund is intended to help eligible landholders pay for farming freight costs, including water cartage, fodder transport and to shift stock to agistment.
Primary Industries Minister Niall Blair said the funding was designed to complement the existing suite of drought measures.
Mr Blair said the annoucement was not a back down on the current drought policy.
The applicant for a Drought Transport Fund loan must demonstrate that:
- They are the owner and operator of a farm business in NSW;
- The business operates as a sole trader, partnership, trust or private company and trades agricultural products;
- The business is registered with the Australian Taxation Office as a primary producer, and has an Australian Business Number (ABN).
- The owners and operators of the business earn more than 50% of their gross income from the primary production enterprise.
- The business is being negatively impacted by drought conditions which is assessed, by the NSW Rural Assistance Authority (RAA), taking into account financial information and the Combined Drought Indicator map;
- The business is in financial need by either being in receipt of a Farm Household Allowance (FHA) or being an eligible client of the Rural Financial Counselling (RFC) service.
- The business can support the loan repayments.
- The owners and operators of the business do not have gross off-farm assets exceeding $1,000,000.
- A Risk Management Plan for the business must be provided with the application or within six months after loan approval.
- The concessional interest rate is fixed for the term of the loan. The rate is 2.5%.
- The maximum loan term is seven years, which includes an initial two year interest and repayment free period.
- The initial two year interest and repayment free period commences on the first loan draw down.
- The loan must be fully drawn down within 12 months after the application is approved
For more details on eligibility, or how to apply, contact the NSW Rural Assistance Authority on 1800 678 593, visit www.raa.nsw.gov.au or speak with your local accountant.
For full terms & conditions visit here.