Unlocking Opportunities for Agricultural Growth - Government Grants

Aug 29, 2023    Posted by Brittany Cunningham

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Delmade is excited to share valuable information about two impactful government grants that can help Tasmanian farm businesses and agri-food businesses operate and grow.

The AgriGrowth Loan Scheme (+ Young Farmer Support Package) and the Farm Investment Loan are initiatives of the Tasmanian Government that aim to foster innovation, sustainability, and expansion within the agricultural sector.

 

AgriGrowth Loan Scheme: Powering Agrivision 2050

The AgriGrowth Loan Scheme initiative is designed to provide low-interest loans to Tasmanian farm businesses and agri-food businesses that are aligned with the Agrivision 2050 plan. This plan seeks to enhance the value of Tasmania's agriculture and agri-food sectors.

Key Features

  • Loans ranging from $100,000 to $3 million
  • Supports projects that advance the Agrivision 2050 plan
  • Offers variable concessional interest rates (around 5.68% as of July 2023) for up to five years
  • Provides the flexibility of interest-only payments for five years
  • Allows loans to be repaid fully or refinanced at the end of the loan term
  • Offers up to five hours of free professional business planning or relevant advice through the Enterprise Centre network

Eligibility

Farm Businesses and Agri-food Businesses operating in Tasmania may be eligible for the AgriGrowth Loan Scheme. The scheme supports activities related to agriculture, horticulture, pastoral, apiculture, aquaculture, and agri-tourism. The businesses should demonstrate financial viability and have a clear need for the loan that aligns with the government's agri-growth agenda. To apply, businesses must operate as a sole trader, trust, partnership, or private company, and they must be registered for tax purposes in Australia with an ABN.

 

Young Farmer Support Package: Paving the Way for the Next Generation

Young farmers play a vital role in shaping the future of agriculture. The Young Farmer Support Package is an integral part of the AgriGrowth Loan Scheme, offering cost reductions, enhanced interest rates, and more flexible security and loan arrangements to young farmers.

Key Features

  • Waived loan establishment fees
  • Capped cost of Crown Law loan documentation at $500
  • Enhanced concessional interest rates for the first two years of loan assistance
  • Possibility of unsecured or partially secured loans up to $250,000 on a case-by-case basis
  • Industry-targeted dairy assistance for young farmers transitioning to share dairy farming

Eligibility

Young farmers, generally up to 45 years of age, can benefit from the Young Farmer Support Package if they meet the eligibility criteria of the AgriGrowth Loan Scheme. These criteria include demonstrating suitable farming experience, financial need, commercial viability, and the ability to manage financial affairs.

 

Farm Investment Loan: Strengthening Your Farm Business

In the face of business disruptions and the need for growth, the Farm Investment Loan becomes a beacon of support for farm businesses in Tasmania. This loan helps farms withstand challenges, enhance productivity, and prepare for a more resilient future.

Key Features

  • Maximum loan amount of $2 million
  • Variable interest rate (4.52% as of August 2023 to January 2024)
  • Repayment structure: First 5 years interest-only, followed by principal and interest for the remaining 5 years
  • No fees for extra repayments or application

Eligibility

Farm businesses that contribute at least 75% of their labour and derive 50% of their income from farming activities are eligible for the Farm Investment Loan. These businesses must also have a need for the loan, the capacity to repay it, and a viable long-term financial plan. They should operate within eligible industries and be registered for tax purposes in Australia.

How to Apply

For those eager to seize these opportunities, applying is straightforward.

Simply visit the below sites to get in contact with the relevant government department.

AgriGrowth Loan Scheme (+Young Farmer Support Package)

Website: AgriGrowth Loan Scheme | Department of State Growth

Farm Investment Loan

Website: Farm Investment Loan - Regional Investment Corporation (ric.gov.au)

These government grants for Tasmanian farmers and agri-food businesses are be a powerful tool to help drive growth, innovation, and sustainability in the agricultural sector. A great opportunity to transform your business and invest in your future!

The team at Delmade would be happy to answer questions you may have please call 1800 335 623.

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