$30m Commonwealth drought package for western Victoria’s battling farmers

UPDATE: BATTLING western Victorian farmers are being urged to ‘get the ball rolling’ on drought assistance plans.

Help on way: Federal Agriculture Minister Barnaby Joyce will make $30 million available for drought-affected Victorian farmers. Picture: Nathan Edwards

UPDATE: Battling western Victorian farmers are urged to “get the ball rolling” to ensure they’ll have access to drought assistance.

Federal Agriculture Minister Barnaby Joyce has today announced he has reached a deal with the Victorian Government to deliver $30 million of concessional loans for farm businesses.

Mr Joyce said “high-level settings” were now agreed on and he would soon finalise the scheme’s guidelines and delivery arrangements to allow farm businesses to apply.

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The funding is part of the $320 million national drought package unveiled earlier this year.

Victorian Farmers Federation president Peter Tuohey said the drought loan guidelines would soon be finalised.

He said in the meantime he was urging drought-affected farmers to contact the Rural Finance Corporation to work out what’s available and what information they need to gather as part of the application process.

“It’s no good waiting to the last moment. Anyone who needs support should be getting financial and other records together in preparation for lodging an application,” he said

Farmers in the northern Wimmera and Southern Mallee are eligible for the loans, based on Bureau of Meteorology mapping that shows they’ve experienced a 1-20 year rainfall deficiency.

He had warned last week the low rainfall in the state’s west meant there were farmers with failed crops and others who had run out of stock water.

Mr Joyce said loans would provide “much-needed help to those experiencing drought” to restructure their existing business debt, meet ongoing costs of running their farm business or drought-proof their properties.

The five-year loans will fund up to 50 per cent of ­eligible farm business debt to a maximum of $1 million at an initial concessional interest rate of 4 per cent.

Victorian Agriculture Minister Peter Walsh said it was “good news” for farmers, with many doing it tough in the face of dry conditions across the state’s west and northwest.

He said the Rural Finance would deliver the new drought scheme.

Eligible farm businesses that already had a Farm ­Finance Concessional Loan would be able to apply to transfer to a Drought Concessional Loan when they become available, Mr Walsh said.

Victorian Premier Denis Napthine last week said he would stump up cash for drought-affected farmers if the Coalition won the election.

“We will continue to mon­itor that and work with communities about how we can best help them through some challenging times,” Dr Napthine said.

Labor’s agriculture spokesman Joel Fitzgibbon said nine months on from the Prime Minister’s drought tour the government was “finally acknowledging the plight of drought affected Victorian farmers”.

“Yet Barnaby Joyce’s announcement today amounts to no more than a lick and a promise,” he said.

“Farmers in Victoria will be disappointed that on the eve of the Victorian election they are being used as no more than pawns in the Coalition’s political game.”

●  For more information on the Farm Finance Concessional Loans Scheme eligibility criteria, loans terms and how to apply, contact Rural Finance on 1800 260 425 or visit ruralfinance.com.au

READ MORE: Barnaby Joyce flags drought funding