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Dairy Recovery Concessional Loans
Dairy Recovery Concessional Loans are an initiative of the Australian Government to assist eligible commercially viable dairy farm businesses through the short-term crisis caused by the May 2016 decision of Murray Goulburn and Fonterra to reduce farm gate milk prices.
The loans will be delivered as part of the Farm Business Concessional Loan Scheme. Under the scheme the Australian Government has provided Tasmania with a total of $10 million for the provision of Dairy Recovery Concessional Loans, Drought Assistance Concessional Loans and Business Improvement Concessional Loans.
Loans up to a maximum value of $1 million are available. The Department of State Growth/Tasmania Development and Resources will assess and decide if applications are eligible through a non‑competitive first-come first-served selection process.
Key features of the Dairy Recovery Concessional Loan Scheme
- Dairy Recovery Concessional Loans are for eligible farm businesses for the purposes of debt restructuring, new debt for operating expenses or productivity enhancement activities, or a combination of these.
- Loan amounts are up to a maximum of $1 million in total.
- A concessional variable interest rate commencing at 3.09 per cent (as at 1 August 2017), which is reviewed on a six monthly basis.
- A maximum loan term of 10 years, with interest only repayments for the first five years and principal and interest repayments for years six to 10.
- The farm business must repay or refinance the remaining loan balance at the end of the loan term.
- The availability of loans is subject to funds being available—applications close on the closing date of the application period (as published on the Department of State Growth website) or when funding is fully committed, whichever occurs first.
To be eligible for a Dairy Recovery Concessional Loan an applicant must demonstrate that they meet the Dairy Recovery Concessional Loan eligibility criteria.
Detailed information about the eligibility and assessment criteria is available in the Dairy Recovery Concessional Loans Scheme Guidelines.
Guidelines and Application Form
- Dairy Recovery Concessional Loan Scheme – Application Form
- Dairy Recovery Concessional Loan Scheme – Guidelines
- Management Plan Template (PDF)
- Management Plan Template (Word)
Applications for Dairy Recovery Concessional Loans open on 31 July 2017 and may remain open until 30 June 2018 or until funding is fully committed, whichever occurs first.
Details of any revisions to the scheme over this period will be published on the Department of State Growth’s website at www.stategrowth.tas.gov.au/dairyrecovery2017
How to apply
To ensure your application has addressed all the requirements applicants are encouraged to first contact one of the Department of State Growth’s program managers through Business Tasmania on 1800 440 026 (free call).
Eligible applicants should lodge their completed application form including all required supporting documents no later than the closing date of the application period, 30 June 2017.
Applications lodged after the advertised application period closing date will not be accepted.
Applications may be submitted via post or email.
Senior Program Manager
Dairy Recovery Concessional Loans
Department of State Growth
GPO Box 536
Hobart TAS 7001