CHEAP loans for some Victorian dairy farmers have been made available three weeks after the Federal Government announced a support package, but some believe it’s a “far cry from what farmers deserve”.
While the $30 million Dairy Recovery Concessional Loans, through Rural Finance, were announced late last month, the final draft loan agreement and guidelines were only provided to Victoria last week.
But, Victorian Minister for Agriculture, Jaala Pulford said it is likely the $30 million funding pool will provide support to only 70 of Victoria’s 4300 dairy farms.
The loans of up to $200,000 will be offered at 2.7 per cent interest, over 10 years.
Under the arrangements, only farmers supplying Murray Goulburn and Fonterra during the 2015/16 milk season will be able to access the loans scheme.
Ms Pulford has sought changes to eligibility requirements to enable suppliers of other processors to access the scheme.
Changes have also been sought to ensure share farmers and young farmers can access loan arrangements.
“This means one in five Victorian dairy farmers will be ineligible – even though the expected lower opening price for the next year will impact those supplying all processors,” Ms Pulford said.
“The loan scheme may also disadvantage share farmers, who are usually younger farmers and may not meet the credit requirements for these types of loans.
“The Coalition needs to explain why it has removed the financial hardship test for the Dairy Recovery Concessional Loans, which prioritises loans towards those who are in greatest financial need.”
Ms Pulford said the Federal Government should reconsider the interest rate they are offering, to 1.6 per cent.
Federal Minister for Agriculture, Barnaby Joyce suggested that the Victorian Government was playing politics with the issue, referring to Ms Pulford’s requests as “a crude politicisation of dairy assistance”.
“We are doing all we can to listen and consult closely with farmers to get them back on their feet,” Ms Pulford said.
“This is about getting the best deal we can for Victorian dairy farmers so our farmers can access all the support they need.”
Mead dairy farmer, Dianne Bowles, who started the Show Some #dairylove Facebook page shortly after the farm gate milk price drop was announced, welcomed the funding commitment, but said farmers need to work out their cost of production per cow before taking on more debt.
“For some it might be better to wind back for a short time, however, we need to get good, informed advice,” she said.
The $55 million concessional loans, available until October 31, have also been offered to New South Wales ($10 million), Tasmania ($10 million) and South Australia ($5 million).
The Federal Government has not provided advice on future allocations of the $550 million concessional loans package.
