Farm Improvement Loans (RAA & RIC)

Farm Innovation Fund (FIF)

The Farm Innovation Fund (FIF) is a long term, low interest rate loan from the NSW Government for the development of permanent on-farm infrastructure. 

The FIF helps farmers to:

  • Improve farm productivity – reduce risks and improve efficiencies by building fodder and grain storage facilities, sheds, fencing, roadworks and solar power conversions.
  • Manage adverse seasonal conditions – improve water efficiencies with irrigation systems, cap and piping of bores, new dams, install water tanks and desilting of ground tanks.
  • Ensure long term sustainability – increase the viability of a farm business and improve pasture and soil health, plant trees for shade and wildlife corridors, eradicate weeds, flood proof property and fence river banks.

The benefits to you :

  • the concessional rate is fixed for the term of the loan
  • the loan term can be up to 20 years
  • loans of up to $1,000,000 per application
  • up to 100% of the net (GST exclusive) cost of the works can be borrowed
  • applications must be received before costs are incurred.

Call RFCSCR to discuss your eligibility and how this loan can benefit your farm enterprise.

Are you eligible:

  • You are the owner or operator of the farm where the work is being carried out
  • As the owner you earn more than 50% of your gross income from the primary production enterprise.
  • Option for new entrants to apply
  • Gross off farm assets less than $5,000,000
  • Works must have a significant beneficial impact on the land, the farming business and aid in preparing for adverse seasonal conditions 
  • Your enterprise must be able to demonstrate long term viability and capacity to repay the loan 

Please click here to find the most recent eligibility criteria.

Farm Investment Loan (RIC)

A low interest government funded loan to make your farm business stronger, more resilient and more profitable.

Farm Investment Loan can be used for any farm business related activity including :

  • Long term commercial debt refinance
  • Enhancing productivity 
  • Covering operating expenses and capital improvements
  • Drought related expenses including preparedness, management and recovery

The benefits to you :

  • no application fees or ongoing fees or charges
  • repayments are tailored to suit the cash flow of your farm business
  • you can borrow up to $2 million or 50% of current eligible debt
  • variable, concessional  interest rate 
  • loan term is 10 years with the initial 5 years interest only followed by P&I for the remainder of the Loan Term

Your local Rural Financial Counsellor can assist with Farm Business Planning.

Are you eligible:

  • You must be an Australian citizen or permanent resident
  • You must contribute at least 75% of your labour to the farm business (in normal seasons)
  • You must earn at least 50% of your income from the farm business (in normal seasons)
  • Your business is in financial need but financially viable in the long term
  • You have the capacity to secure and repay the loan

https://www.ric.gov.au/farm-investment

AgriStarter (RIC)

The AgriStarter loan will be available to assist the next generation of Australian farmers  in buying an existing farm business, undertaking succession arrangements or establishing a new farm business and will be available from 1st January 2021. 

  • Up to $2 million can be borrowed using the AgriStarter loan over 10 years with the first five years’ interest-only, followed by five years’ principal and interest repayments.
  • Interest rate is concessional and variable
  • Applicants must demonstrate that they are in need of financial assistance and have sound prospects of long-term financial viability.
  • Full details of the AgriStarter loan guidelines and application form will be made available from 1 January 2021. https://www.ric.gov.au/agristarter 

Your local Rural Financial Counsellor can assist with Succession Planning.

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