The Tasmanian government has come up with an innovative initiative of providing loans to farmers with advanced farming ideas. The farmers with productive agricultural ideas can apply for a loan scheme of up to AU$10 million.

On Monday, Primary Industries Minister Jeremy Rockliff launched the scheme which will offer loan to farmers to help them establish profit-making ventures. He claimed that any farmer who aims at having a successful agricultural venture can benefit from this lending scheme. The scheme is for farmers who want to establish a successful business venture and have a concrete plan in mind, but cannot proceed because of the inability to fulfil the gap between start-up outlay and regular income

“These funds may, for example, assist new entrants into the industry, provide irrigation infrastructure loans, assist in farm productivity improvements and horticulture developments, including replanting orchards to update varieties,” he said. He added that the loan applications from anyone associated with sectors in horticulture, apiculture, fruit, aquaculture, wine and agri-tourism will be accepted.

The low-interest scheme will aid the farmers’ ideas to convert into long term productive businesses. The 12-month pilot program has been introduced to ensure new opportunities in the agricultural sector with low-interest.

The program will start with a limit of AU$10 million loan from 2016. The loan will likely offer loan plans between AU$30,000 and AU$1 million. The fund allocated in the State Budget by the Liberal government’s AgriVision 2050 for the scheme amounts to AU$250,000.

Tasmanian Development Board will be administering the farming loan. As soon as the rules and regulations are finalised, the scheme will be delivered by the Department of the State Growth in collaboration with AgriGrowth Tasmania.

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