Horse farmers, turf growers, tea tree and lavender growers are among those who will be eligible for a farm business loan from the Regional Investment Corporation from July 1, following a an expansion of the definitions of agricultural businesses in the RIC.
The eligibility update follows industry and public consultation conducted by the RIC in late 2021.
“Australian agriculture is diverse and constantly changing to respond to new and emerging markets. It was therefore an important moment for the RIC, several years after the start of our operations, to ask industry and the public whether our eligibility to lending should be expanded,” said Paul Dowler, acting chief executive of the RIC. noted.
“Most of the 85 responses we received to the industry and public consultation agreed that more agricultural businesses should be eligible, so we listened to that feedback.
“The RIC will have $266 million available next year for concessional loans to agricultural businesses, agriculture-related small businesses and plantation growers to support regional Australia and the agriculture sector’s goal of becoming a $100 billion industry by 2030.
“The expansion of farm business eligibility also follows the recent change in eligibility for the AgriStarter loan to include existing farmers and farm rental business owners to use the loan to purchase a farm business, expand a business existing farm or buy farmland.
Agricultural businesses currently eligible for RIC loans include primary production of grains, fresh fruits and vegetables, meat and meat products, milk, sugar cane, wine grapes, natural fibers and fish. edible, molluscs, crustaceans and aquatic plants.
The expanded definitions of agricultural businesses are based on industries undertaking eligible primary production activities listed in the Australian-New Zealand Standard Industrial Classification 2006 (ANZSIC) 1292.0 (Revision 2.0) Codes 01 (Agriculture), 02 (Aquaculture) with some exclusions.
As a result, from July 1, 2022, eligibility will be extended to horse breeders, sod growers, growers of tea trees, lavender, pharmaceutical/cosmetic plants, nurseries and floriculture (where they do not were not already eligible for primary production such as shelter belts and cellar rootstock).
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