Drought-affected farmers in New South Wales can now apply for a Drought Concessional Loan or a Drought Recovery Concessional Loan for 2015 to 2016. The schemes aim to help farmers affected by drought to restructure existing debt, to fund operating expenses or innovative drought-preparedness measures.

The government promises to ensure that farmers would have greater certainty about the support available to them during periods of drought through the Agricultural Competitiveness White Paper. The White Paper was set to provide up to $30 million for Drought Concessional Loans and up to $25 million for Drought Recovery Concessional Loans in NSW.

The farmers can apply for the Drought Concessional Loans available for an interest-only term of five years, or in Drought Recovery Concessional Loans available for 10 years with interest-only repayments available for the first five years.

“With concessional interest rates currently at 3.05 percent for Drought Concessional Loans and 2.71 percent for Drought Recovery Concessional Loans, these loan facilities represent the cheapest finance available to drought-affected farmers,” Federal Minister for Agriculture Barnaby Joyce said.

More than 30 Local Government Areas, or LGAs, in New South Wales remain affected by drought. The areas experience a single rainfall in 10 years or may possibly be only one in 20-year rainfall deficiency. There has been historically low rainfall over the past two years on other parts of at least 14 LGAs, including Moree Plains, Walgett, Narrabri.

Drought delivers a devastating impact on primary producers, communities and regional economies. In response, the government made the NSW Drought Strategy that will support the farmers by providing a more transparent and targeted system of drought support, long-term improvements to their businesses and reduce risks for future droughts.

“I’ve listened carefully to farmers about needing greater flexibility to include areas that have been very dry for a prolonged period, but don’t fall within areas that suffered the prescribed rainfall deficiency according to the Bureau of Meteorology’s maps,” Joyce said.

The minister for agriculture then introduced some flexibility to the eligibility criteria for the Drought Recovery Concessional Loans Scheme in 2015–16. The new criteria would give more farm businesses the opportunity to access the assistance from the NSW Drought Strategy.

The additional funding has been welcomed by the NSW Minister for Primary Industries, Niall Blair. With over $300 million for funding, the Drought Strategy will provide support for primary producers over the next five years.

“There are some farm businesses in NSW still doing it extremely tough—I am glad they will now be able to apply for these additional assistance measures,” Blair said. There are already 220 NSW farm businesses benefiting from the concessional loans schemes with $121 million worth of loans already approved up to July 2015.

In addition, income support through the Farm Household Allowance has already been granted to nearly 2,000 farmers or their partners in NSW since the programme started on July 1, 2014. The Minister for Agriculture said he “strongly encourage any farmer thinking about applying for a concessional loan or any other assistance measure to talk to the experts and find out more about their options.”

Contact the writer at feedback@ibtimes.com.au or tell us what you think below

RELATED STORIES