The Farm Innovation Fund is an incentive-based initiative to assist farmers within New South Wales to identify and address risks to their farming business, improve permanent farm infrastructure, ensure long term productivity and sustainable land use plus aiding in meeting changes to seasonal conditions.

Please note:  This program is now the 'Drought Infrastructure Fund'.  More information can be found here

If you submitted an application for a Farm Innovation Fund loan which is yet to be processed, you do not need to do anything and can be assured that your application will continue to progress in the queue.

The availability of loans is subject to funds being available.

No loans will be offered beyond the allocated funding.

Funding by way of a loan is available to meet the cost of carrying out permanent capital works that will have a significant beneficial impact on the land, long term profitability of the business and address adverse seasonal conditions. Such works would fall into four main categories and include the following examples but not limited to:

• Drought Preparedness
• Environment
• Farm Infrastructure
• Natural Resources

Amount A loan of up to 100% of the net, GST exclusive cost of the works to a maximum of $1,000,000 with a maximum of $1,000,000 outstanding at any time.

The net cost is determined by deducting the amount of any other Government grants relating to the proposed works.

Interest

The rate will be that applying at the date on which the loan is approved and is fixed for the term of the loan. The rate is currently 2.5%.

Term

Up to 20 years dependent upon the amount borrowed and applicant’s ability to repay. Works must be completed within 12 months from date of loan approval.

Repayments

Monthly, Half Yearly, Quarterly or Annual repayments of principle and interest.

Eligibility

To be eligible for assistance you must demonstrate that: 

• You are the owner or operator of a farm business where the work is to be carried out; and
• Your business operates as a sole trader, partnership, trust or private company and trades agricultural products; and
• Your business is registered with the Australian Taxation Officer as a primary producer, and has an Australian Business Number (ABN); and 
• As the owner and operator, you earn more than 50% of your gross income from your primary production enterprise under normal seasonal circumstances; or You are classified as a “new entrant”, meaning that you have been operating your farm business for between 12 months to three years and more than 50% of your gross income will be derived from the farm business within three years of the date of the application. The applications of new entrants will be considered on a case by case basis.
• You do not have gross off farm assets exceeding $5,000,000 (excluding funds in a registered superannuation fund)

Exclusions 

• Farm plant, machinery, all vehicles and transportable items such as field bins, grain augers etc.
• All residential farm premises/buildings.
• Use of own machinery or own labour.
• All farm inputs.
• Non-farm related items.

• Email: rural.assist@raa.nsw.gov.au