The coalition promised $ 75 million to help farmers buy their first farm and encouraged more people to enter the agricultural industry as land prices soared.
According to Agriculture Minister David Littleproud, the $ 75 million future farmer guarantee system will be rolled out for 18 months starting January 1, 2023.
Under this plan, the government will act as a guarantor for 40 percent (up to $ 1 million) of new farmers’ commercial loans. Applicants must have at least 3 years of farm experience and a minimum deposit.
“Existing landowners are aging. The average vast farmer is 62 and only 10% are under 47,” Little Proud said on Tuesday at the National Press Club as a worker’s agricultural spokeswoman. Said in a discussion with Julie Collins.
“Therefore, we need to shift the dial to ensure that a sustainable agricultural sector exists. It assumes family-owned farms as well as Australian companies.”
“Rising land prices and the typical 40-60% stock deposits required by this government-unguaranteed commercial bank make it very difficult to use a bank loan to start a viable business. Means.
“Government sharing risks means that banks can offer better terms to the right applicants: lower interest rates and lower capital requirements.”
However, the minister insisted that the money had to be repaid.
“This is not a subsidy,” he said. “Farmers are still on their loan hook.”
“What I don’t want to see is that big companies and foreign companies come in and take away the opportunity to succeed where their sons and daughters want to do it.”
Managed by the Government’s Regional Investment Corporation, this scheme can be used for up to 10 years with a maximum loan-to-value ratio of 70%.
Collins agreed that he needed to help family farmers, but said Labor needed to consider the details of the plan.
Despite saying that Labor’s climate change, regional housing and telecommunications policies are beneficial to local industries, spokeswoman has yet to elaborate on opposition agricultural policies.
AAP contributed to this report.