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

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. 

Your local Rural Financial Counsellor can assist with Succession Planning.

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