July 3, 2012

Interest rates for the State Government’s First Start and Sustainability Loans have been cut with the aim of stimulating further investment and support for Queensland’s agricultural sector.

Minister for Agriculture, Fisheries and Forestry John McVeigh said the new fixed interest rates on First Start and Sustainability Loans drawn down from July 1, 2012, to December 31, 2012 are:

  • 1 year fixed, 4.24 per cent (down 0.98 per cent from 5.22 per cent as at January 1, 2012)
  • 3 year fixed, 4.26 per cent (down 0.80 per cent from 5.06 per cent as at January 1, 2012)
  • 5 year fixed, 4.52 per cent (down 0.81 per cent from 5.33 per cent as at January 1, 2012)

“The cut in interest rates is great news for Queensland producers because it will help them invest in infrastructure improvements, land purchases and equipment, leading to more sustainable primary production,” Mr McVeigh said.

“There will also be wider benefits for rural and regional Queensland over the long-term,” he said.

“I encourage Queensland primary producers to take advantage of QRAA’s low interest rates and secure their farming future with the help of a First Start or Sustainability Loan.”

First Start Loans of up to $650,000 are available for applicants who want to enter primary production or become a partner in an existing family operation.

Sustainability Loans of up to $650,000 are available for primary producers wanting to improve their productivity and sustainability.

Mr McVeigh said First Start and Sustainability Loans had no set up or exit fees, repayment terms of up to 20 years and offered the option of joint lending with commercial banks.

“We have seen the confidence of primary producers pick up over recent months with the loans being a popular source of finance for eligible primary producers,” he said.

“At the end of the 2011/12 financial year, QRAA has approved more than 180 First Start and Sustainability Loans valued at more than $58 million.

“For anyone considering a First Start or Sustainability Loan, QRAA’s Client Liaison Officers are available to meet on-farm to discuss the loan criteria, terms and conditions and the application process.”

For more information, call the QRAA on 1800-623-946 or visit the QRAA website

 

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The QRAA last week released the results of its rural debt survey, conducted every two years.

The National Farmers Federation says the clear picture that emerges from the survey is that while average farm debt in Queensland continues to grow – and is now past $1 million per farm – the quality of that debt continues to improve and is clearly performing its intended function of financing sector growth

The NFF has summarised the key data:

Queensland Farm Debt as at December 31 by main categories

Group

2005

2007

2009

2011

% 2yr change
Avg Queensland farm

$531,685

$795,551

$920,777

$1,072,955

+ 16.5%
Avg Beef farm

$799,467

$1,207,696

$1,384,347

$1,412,291

+ 2.0%
Avg Cotton farm

$1,293,796

$2,004,412

$2,497,471

$3,617,548

+ 44.8%
Avg Sugar farm

$360,699

$440,060

$415,040

$560,293

+ 35.0%
Avg Horticulture farm

$303,121

$509,244

$712,051

$797,886

+ 12.1%
Avg Dairy farm

$127,154

$123,878

$613,097

$525,265

– 14.3%
Average ‘good’ loans

$614,578

$973,677

$863,951

$973,042

+ 12.6%
No of risky loans

4,460

4,745

1,778

864

– 51.4%
Farm Debt as % GVP

73%

94%

107%

116%