Farm Innovation Fund

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

The program features are:
- A loan of up to 100% of the net, GST exclusive cost of the works to a maximum of $1 million per project, with a total of $1 million outstanding at any one time. The net cost is determined by deducting the amount of any other government grants relating to the proposed works.
- The interest 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%.
- 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.
- Monthly, half-yearly, quarterly or annual repayments of principle and interest.
- Statutory charge and registered caveat over the property on which the proposed works are to be carried out. (Security over additional property will also be considered.)
- There are no establishment or account keeping fees, however, costs for registering security documents and government stamp duty will be borne by the applicant.
- Applicants can only apply once in any 12-month period. A second application can only be approved on condition that the previous application has been fully drawn.

Interest charges on Farm Innovation Fund loans for the 2019-20 financial year will be waived.

A total funding pool of $1 billion is available.

Eligible applicants must demonstrate that:
- They are the owner or operator of a farm business where the work is to be carried out.
- Their business operates as a sole trader, partnership, trust or private company and trades agricultural products.
- Their business is registered with the Australian Taxation Officer as a primary producer, and has an Australian Business Number (ABN).
- As the owner and operator, they earn more than 50% of their gross income from their primary production enterprise under normal seasonal circumstances.

Applicants are classified as a “new entrant”, meaning that they have been operating their farm business for between 12 months to three years and more than 50% of their 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.

Please refer to the Guidelines for the complete eligibility requirements.

Eligible activities include meeting the cost of carrying out permanent capital works that will have a significant beneficial impact on the land, long term profitability of the enterprise and address adverse seasonal conditions. Such works would fall into four main categories, including:
- Drought preparedness
- Environment
- Farm infrastructure
- Natural resources

Please refer to the Guidelines for the list of examples of eligible activities under each category.