- Share farmers and farm leasing business owners can apply for the AgriStarter Loan from 1 April 2022.
- Up to $2 million loan with first five years’ interest only over a 10-year term.
- Share farmers and farm leasing business owners are recognised as important pathways into farming and farmland ownership.
From today, share farmers and farm leasing business owners can apply for the Regional Investment Corporation’s (RIC) AgriStarter Loan to buy a new farm business, develop an existing farm business or buy farmland.
The expanded eligibility announced by the Australian Government in its 2021-22 Mid-Year Economic and Fiscal Outlook (MYEFO) to be available from 1 April 2022 recognises share farming and farm leasing as key pathways into farming and farmland ownership.
RIC Acting Chief Executive Officer Paul Dowler said the RIC is pleased to make the AgriStarter Loan available to share farmers and farm leasing business owners and support them to grow their farm business, buy a new farm business or farmland.
“The pathway into farming and farmland ownership is increasingly more difficult with high land prices, climate and market volatility, yet the agriculture industry’s success relies on strong diversity and new farm business innovation,” said Mr Dowler.
“Share farming and farm leasing are ways new farmers often enter the industry and build their farm business as they work towards full time farming and farmland ownership, so we’re pleased to see them included in the AgriStarter Loan eligibility.
“The AgriStarter Loan may be for someone with equity yet can’t secure the whole loan with their bank. Our concessional terms can also provide financial breathing space in the early stages of the farm business while cash flow and equity are established.”
The RIC’s AgriStarter Loan supports new farmers to start and develop their first farming business, develop a share farming or farm leasing business, or to assist with farm business succession planning to keep family farms in the family.
Up to $2 million can be borrowed with the first five years’ interest only followed by five years’ principal and interest over a 10-year term. The current variable interest rate is 2.31 per cent and up to 50 per cent of the customer’s total debt needs to remain with their bank.
For more information on the AgriStarter Loan, visit www.ric.gov.au/agristarter