Business Feature
Three months since the introduction of the Australian Government’s Drought Assistance Concessional Loans, the beef industry is leading the herd and taking advantage of savings the loans provide – accounting for more than half of applications received by the Queensland Rural Adjustment Authority (QRAA).
The new loans, introduced on November 1, provide multi-purpose finance to restructure debt, cover operating costs, recover from drought and improve future resilience. Loans of up to $1 million are available, with a concessional interest rate of just 2.47 per cent.
QRAA Chief Executive Officer, Cameron MacMillan said this new loan program provides some welcome breathing space for producers.
“It makes smart business sense whether you’re refinancing existing debt or restocking once conditions have improved,” Mr MacMillan said.
“The beef industry’s uptake of the program has been extremely encouraging and we applaud graziers for taking the initiative and securing the future of their operations,” he said.
For the beef industry, a key appeal is the ability to use the loan to restock, building herd numbers back up to capitalise on improved cattle prices.
“For producers who destocked during the worst of the drought, current prices may be seen as a disheartening hurdle rather than an opportunity,” Mr MacMillan said.
“But these loans can reduce the financial pressure at sale time, providing ten year loan terms at an incredibly low interest rate, including the added bonus of the initial five years interest only.”
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Drought Assistance Concessional Loans are also available to graziers who want to use these better times to invest in drought preparedness and safeguard their operation against future events. Activities such as adding new watering points and installing exclusion fencing to reduce grazing pressure, increasing dam capacity and fodder storage are all eligible under the scheme.
“In 2016, QRAA approved over $46 million in drought assistance to drought-stricken beef producers,” Mr MacMillan said.
“We look forward to continuing to support the industry throughout 2017 and beyond.”
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Applications for Drought Assistance Concessional Loans close 30 June 2017. Producers are urged not to self-assess, and instead call one of QRAA’s eight (soon to be nine) Regional Area Manager’s who can meet on farm to discuss producers’ individual situations, options and the application process.
Drought Assistance Concessional Loans are delivered by QRAA on behalf of the Australian Government in Queensland. For further information visit www.qraa.qld.gov.au or contact QRAA on Freecall 1800 623 946.