CONCESSIONAL loans will be a key component of the Federal Government’s $600 million support package for struggling dairy farmers.
The Federal Minister for Agriculture, Barnaby Joyce announced that $555 million will be available in Dairy Recovery Concessional Loans.
Victorian dairy farmers were left facing debts of hundreds of thousands of dollars after major milk processors Murray Goulburn and Fonterra slashed prices within a week of each other.
“The concessional loans will go as low as 2.66 per cent. They’re currently at 2.71 per cent.” Mr Joyce said.
“Farmers will be able to borrow $1 million or half of what they owe, whichever is the lesser, so that they can assist themselves to get through this crisis.”
The loans will be available to recipients for up to a decade and will be funded by expanding the current drought concessional loans scheme to include criteria specific to dairy farmers.
Member for Mallee Andrew Broad said the retrospective farm gate milk price cuts were beginning to impact on farmers’ bottom line.
“This is some good news for the dairy farmers in our region, in what has been a very difficult period,” Mr Broad said.
Included in the support package is $900,000 for nine additional Rural Financial Counselling Service Victoria counsellors and $900,000 for Dairy Australia’s Tactics for Tight Times program.
Farm Household Allowance applications will be fast-tracked and $2 million allocated to help establish a commodity milk price index.
“Both the Australian Government and the Australian people value the contribution our dairy farmers make to their regional communities and we are committed to supporting them through the good times and the bad,” Mr Broad said.
The move comes after around 250 people gathered in Melbourne for a rally to thank consumers for their support and to call for change to the way milk was sold.
United Dairyfarmers of Victoria president, Adam Jenkins said the package provided greater flexibility in managing their debt.
“This crisis is all about farmers working together to find practical solutions to the enormous challenges we all now face,” Mr Jenkins said.
