Federal Election 2022: Coalition $75 million promise to help farm ownership

The cost of buying a farm is prohibitive for many. Find out how the Coalition plans to help make that dream possible.

The Coalition will pilot an 18-month $75 million program designed to support farmers into first time ownership against a backdrop of soaring property prices if re-elected next month.

Federal Agriculture Minister David Littleproud announced that under a Future Farmer Guarantee Scheme his government would guarantee 40 per cent of an eligible new farmer’s commercial load up to a maximum of $1 million.

Families needing access to capital to assist with succession planning and families and farmers getting into ownership for the first time are expected to be the biggest beneficiaries.

“Existing landholders are ageing, the average broadacre farmer is 62-years-old, with only 10 per cent aged under 47,” Mr Littleproud said.

“Rising land values and the typical 40 to 60 per cent equity deposit required by commercial banks without this government guarantee mean that getting access to a bank loan to start a viable business is very difficult.

“Government sharing the risk means that the bank can offer better terms to suitable applicants.”

Applicants must have at least three years of relevant on-farm or equivalent experience to be eligible.

A total of $1.45 million will be provided to the Regional Investment Corporation to administer the program opening on January 1 if the Coalition is returned on May 21.

The $75 million guarantee will come from existing RIC appropriations.

But Mr Littleproud said the scheme was not a “free for all”.

“Applicants will need to have on-farm experience, a minimum deposit and be a sound lending prospect from the bank’s perspective,” he said.

“The farmer is still on the hook for their loan.”