DROUGHT affected Queensland farmers can now apply for a drought recovery loan after the federal government committed $50 million to the program this morning.
The new the new Drought Recovery Concessional Loans Scheme gives producers access to finance at a lower interest rate for a longer term to assist them in getting back to full production as soon as possible.
Federal Agriculture Minister Barnaby Joyce said when managing drought, the biggest demand for cash often came in the recovery phase, when farmers need to restock and plant new crops.
"In Queensland, the loans will also help those impacted by drought and the mid-2011 disruption to live cattle exports to Indonesia,” Mr Joyce said.
“Farm businesses can apply for a loan of up to $1 million over 10 years at a concessional variable interest rate initially set at 3.21 per cent.
"These loan settings take into account the devastating impact that 1-in-50 or 1-in-100 year droughts have on farm businesses by offering longer loan terms and lower interest rates."
Queensland Agriculture Minister John McVeigh welcomed the announcement and said the loans would assist farmers getting back to business as soon as possible and boost their production.
Mr McVeigh said that farm businesses that have already taken advantage of the Farm Finance or Drought Concessional Loans schemes are encouraged to talk QRAA about their eligibility for the Drought Recovery Concessional Loans Scheme.