The Regional Investment Corporation’s AgriStarter Loan supports farmers to establish, purchase or develop a farm business and assists with planning and implementing farm business succession.
Funds can be used to buy land, infrastructure and business assets, pay the costs associated with succession planning, cover legal costs and stamp duty, cover operating expenses or refinance existing debt to improve cashflow.
From 1 April 2022, AgriStarter Loan eligibility has been extended to include share farmers and farm leasing business owners.
Share farmers and farm leasing business owners were previously able to apply for the loan, but only if they had recently purchased their first farm business. Existing share and lease farmers can apply now even if they’ve been in their majority-owned farm business for an extended period of time.
Share farmers and farm leasing business owners can use the AgriStarter Loan to establish a controlling stake in a new or existing farm business, develop their business or purchase farmland.
The terms for the AgriStarter Loan are unchanged – the loan offers up to $2 million across a 10-year period. The first five years are interest only, with principal and interest repayments due for the remainder of the term.
At least 50 per cent of the total debt needs to be with a commercial lender.
To be eligible, share and lease farmers need to have, or be working towards having, the sole or controlling interest in the business. It needs to be the first time they have held a controlling interest.
They will need to provide the agreement with the other interested parties, or their landlord, as part of their application.
The AgriStarter Loan can help first farmers to gain more financial control and security over their farm business and support their transition to full-time farming.
For more information, visit AgriStarter Loan