Loans to strengthen your farm business

Overview

Farm Investment Loans provide farm businesses with loans to make farms stronger, more resilient and more profitable.

The loans may be used to:

• strengthen your farm business
• access markets interstate or outside Australia
• prepare for, manage through or recover from drought
• refinance existing debt
• pay for operating expenses or capital
• enhance productivity
• fund drought-related activities

Loans of up to $2 million over a period of 10 years are available. Repayments over the first 5 years are interest only, then principal and interest for the remaining 5 years. After 10 years, any remaining balance on the loan can be refinanced with a commercial lender.

What are the eligibility criteria?

To be eligible, you must:

• be an Australian citizen or permanent resident
• contribute at least 75% of your labour to the farm business (under normal circumstances)
• earn at least 50% of your income from the farm business (under normal circumstances)

Additionally, the farm business you are running must:

• solely or mainly sell products into supply chains that are interstate or outside Australia, or plan to in the future
• have existing commercial debt
• be registered for tax purposes in Australia with an Australian business number (ABN) and be registered for GST
• be in financial need of a loan
• have the capacity to repay the loan
• operate as a sole trader, trust, partnership or private company
• be in the agriculture, horticulture, pastoral, apiculture, or aquaculture industry

How do you apply?

You must include a business cash flow budget with your application. If you need help to compile your documents and complete your application, contact an advisor from your local Rural Financial Counselling Service.

Find out more about eligibility and how to apply at Farm Investment Loans.