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Assistance for Primary Producers

Grants and loans for start-up, sustainability and succession planning

GB Walker & Associates can assist you in applying for a government loan or grant of this nature

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Recently, the state budget announced an extension to government loans available to primary producers in Queensland. As a result, you can apply for a Start-up Loan or Sustainability Loan that may provide low interest rates over a 20-year period.

There is also offered a Farm Management Grant to assist eligible Queensland primary producers or their relatives offset the costs of professional advice associated with succession planning.


Farm Management Grant

What a Farm Management Grant can be used for

Costs eligible for the rebate include those for professional advice provided by suitably qualified professionals including for example, accountants, succession advisors or solicitors.
Rebates of up to 50 per cent of the amount paid for professional advice, to a maximum of $2,500 for each financial year of the scheme, are available. To receive a rebate for a financial year, an application must be received in that year and may include an application made before professional advice is received.

To be eligible for a Farm Management Grant, you must:

  • be a primary producer, or a relative of the primary producer for a primary production enterprise; and
  • have paid, or will pay for advice relating to transferring or acquiring an interest in the primary production enterprise from a suitably qualified professional, at or after 23 March 2017.

We recommend using the Farm Management Grant to assist with planning and preparing for an application for further government loans.

This scheme will close to applications 30 June 2019.


Start-Up Loan

What a Start-Up Loan can be used for

First Start Loans provide you with finance up to $2,000,000 to assist you in the early years of establishing your primary production enterprise. Obtain the finance you need to enter into primary production or to become a full-time primary producer.

What can you use the loan for? A range of activities that enable you to expand current operations to achieve viability, or assist you to enter into your first primary production enterprise, are eligible.

Buying your first farm: Considering buying your first farm - a neighbouring property or another primary production enterprise? Purchase property on a staged basis, allowing your off-farm income to service the loan. Achieve your goal of becoming a full-time primary producer sooner. 
Become a partner in the family farm: Thinking about succession? Ensure the family business continues for years to come by assisting younger generation family members to purchase property from parents or other family members, or enter the family partnership.
Achieve enterprise viability: If you want to get the most out of your property and deliver better returns on investment, a First Start Loan could help you upgrade or build-up your enterprise to one that is viable and sustainable.
Leasing or sharefarming: The option to lease or sharefarm is available to enable you to participate in primary production while building your capacity to purchase your own enterprise.
Joint lending with your bank: QRIDA will consider joint lending options with your bank or other commercial lenders. If you require more than $2 million or partial funding from QRIDA for a specific project or activity, please discuss your options with us.

Key terms of a Start-Up Loan

Loan amount: Up to $2 million 
Loan term: Up to 20 years 
Interest rate: Low interest rates fixed for 1, 3 or 5 years 
Fees and charges: Nil 
Security: Security must be provided commensurate with the amount of the loan

Eligibility

In order to apply for a Start-Up Loan, you will need to demonstrate that you have:

  • resided in Queensland for six months;
  • sound prospects for long-term commercial viability in the long-term development of the primary production enterprise;
  • capacity to service the loan;
  • demonstrated financial need;
  • demonstrated adequate experience or other qualifications to give a reasonable prospect of success; and
  • equity of 50% or move to the purchase, or 50% of set up costs for leasing and sharefarming.

Sustainability Loan

What a Sustainability Loan can be used for

In order to apply for a Sustainability Loan, you will need to demonstrate that the funding will:

  • improve farming efficiencies, by building fences, dams or improving irrigation;
  • upgrade or diversify operations by purchasing plant or machinery and livestock; or
  • achieve long-term sustainability by purchasing equipment that meet environmental requirements, or to drought/flood "proof" the property.

Sustainability Loans provide you with finance up to $1,300,000 to assist in achieving a more productive and sustainable primary production enterprise.

What can you use the loan for? A range of activities that enable you to expand current operations to improve productivity or long-term sustainability, are eligible.

Improving enterprise efficiencies: Make your land work better for you by building fences, dams, storage facilities, improving irrigation, or establishing additional water points. Implement on-farm value adding or supply chain initiatives to ensure your enterprise continues to be successful for years to come.
Upgrading or diversifying operations: Upgrade operations to improve productivity - buy or replace plant or machinery as part of your farm business planning, or diversify your operations. If you would like to purchase livestock or machinery, QRIDA can lend for these purchases. You can also expand your enterprise in stages to best meet your cashflow.
Achieve long-term sustainability: Purchase equipment to meet environmental requirements, or drought/flood 'proof' your property. Implement sustainable resource management practices, including alternative energy systems to achieve long-term sustainability.
Joint lending with your bank: QRIDA will consider joint lending options with your bank or other commercial lenders. If you require more than $1.3 million or partial funding from QRIDA for a specific project or activity, please discuss your requirements with us.

Key terms of a Sustainability Loan

Loan amount: Up to $1.3 million
Loan term: Up to 20 years
Interest rate: Low interest rates fixed for 1, 3or5 years
Fees and charges: Nil
Security: Security must be provided commensurate with the amount of the loan

Eligibility
If you meet the following requirements, you may be eligible for a Sustainability Loan:

  • be a full-time primary producer operating for at least 2 years;
  • sound prospects for commercial viability;
  • demonstrate financial need (note: This does not require a decline by your commercial lender); and
  • provide an adequate management plan.

 

Our firm can assist you in applying for a loan or grant of this nature, including providing financial and quantitative figures in relation to livestock, assets and liabilities, past performance and future budgets.

 

Contact us to discuss your primary production business circumstances and requirements.