Farm Innovation Fund

The Farm Innovation Fund is a NSW Government scheme administered by the Rural Assistance Authority, which provides loans at concessional interest rates to farm businesses, to undertake permanent farm infrastructure work such as silos, shearing sheds, fencing, stock water or irrigation systems.

Loans can be for 100% of the GST exclusive cost of the works, to a maximum of $250,000 for up to a 20 year term based on capacity to repay. The interest rate, to be determined at funding, is fixed for the term of the loan, with indicative rates around 2.5% pa.

Security for the loan is by a statutory charge and registered caveat over the land on which the works are to be undertaken.  Consent from an existing mortgagor (ie: a bank) is required and in most situations this is likely to be granted.

The application requires that the works will significantly benefit the business in being better prepared for adverse seasonal conditions, improving long term productivity and viability.

Details of the application can be found at http://www.raa.nsw.gov.au/assistance/farm-innovation-fund.  Rural Management Strategies consultants can assist with preparing the application.