Interest rates on loans delivered under the Farm Finance Concessional Loans Scheme and the Drought Concessional Loans Scheme will fall to 4.34 and 3.84 per cent respectively from 1 February 2015.
Minister for Agriculture, Barnaby Joyce, said falling interest rates were good news for farmers facing difficult conditions.
“The government has listened to farmers and what they’ve told us is that they need access to finance at lower rates to sustain and rebuild their business during protracted drought,” Minister Joyce said.
“Agricultural exports are vital to the balance of trade in Australia. These schemes are designed to ensure that viable farms can continue to be an essential contributor to the national economy.”
The Australian Government reviews the interest rate applied to the Farm Finance and Drought Concessional Loans Schemes on a six monthly basis. Adjustments to the concessional interest rates are made in accordance with material changes to the Commonwealth five year bond rate.
Farm Finance Concessional Loans interest rate will be reduced from 4.5 per cent to 4.34 per cent. The Drought Concessional Loans Scheme is pegged 50 basis points below that of the Farm Finance Concessional Loans Scheme interest rate and will be reduced accordingly from 4 per cent to 3.84 per cent.
“The Australian Government is committed to maintaining Farm Finance and Drought Support schemes that deliver responsive, effective and genuine assistance where it is needed on the ground,” Minister Joyce said.
“We are determined to stand by farmers through good times and bad.”
Source: Minister for Agriculture. Farm businesses that have questions should contact the relevant delivery agency in their state. Full contact details are available online: Farm Finance Concessional Loans