AgriStarter loans for young farmers delayed as drought demand skyrockets

Young farmers are still waiting to access Federal Government loans to help them buy their first property, more than a year after the scheme was first announced.

The launch of the ­AgriStarter concessional loans could be delayed until next year.

YOUNG farmers are still waiting to access a promised Federal Government scheme to help them buy their first farm, despite it being announced more than a year ago.

But the launch of the ­AgriStarter concessional loans could be delayed until next year, as the Regional Investment Corporation struggles to keep up with demand from drought-stricken customers.

Applications for the RIC’s drought and small business loans have skyrocketed, with the corporation approving $115 million worth of loans in April alone. The RIC was set up to deal with 300-500 applications in a year, but says it is now receiving that many applications in a month.

It means the proposed ­AgriStarter loans, which the Coalition promised during the 2019 election campaign, have been delayed.

About 260 young people have registered their interest in the scheme, which will provide cheap loans up to $2 million to new farmers wanting to buy a majority or total share of a farm.

NSW Farmers Young Farmers chairwoman Rachel Nicoll said the group wanted the Government to introduce the loans as soon as possible.

“Now that they (the Government) have announced JobMaker, I would have thought AgriStarter would also be a priority,” she said.

“Having the loans at this time are a way to continue to invest in agriculture, and it gives young farmers a licence to continue.”

Ms Nicoll said the scheme had generated a lot of interest, and could remove the financial barriers for those wanting to start up their own farm.

Mr Littleproud and the RIC said increased applications for the RIC’s existing products meant the AgriStarter loans had been put off until next financial year.

“The launch of the ­AgriStarter Loans needed to be delayed while the RIC focuses on servicing the applications received to date, and supporting farmers and small businesses in need of assistance due to the drought,” he said.

An RIC spokeswoman said the “incredible demand” for its loans peaked after the Federal Government announced interest-free terms in November last year, and meant all their resources needed to be redirected into processing those applications first.

She said all those who had registered interest in the Agristarter loans would be notified once applications opened.