Support for young farmers

Wednesday, 18 May 2011

Premier Ted Baillieu today announced more young farmers will be able to benefit from a low interest loan to purchase land, livestock and equipment under a boost to the Young Farmer Finance Scheme.

Mr Baillieu visited Serpentine today and announced a 50 per cent increase in the annual budget for the concessional loans scheme from $15 million to $22.5 million over the next five years.

These concessional loans are offered to young farmers by Rural Finance at an interest rate of up to two per cent below their nominal rate for an initial period of five years, at which point the loan reverts to the commercial rate.

This boost brings the scheme into line with current land and property prices, to better assist those young farmers who take up the loans.

The Victorian Government is acting to ensure young farmers are not forced to leave their traditional backgrounds because of a lack of opportunity and support.  Farming is a vital part of Victoria's economy and we want to encourage young people to either return or move to the country, or be confident they have the resources to pick up where their parents or grandparents left off.

This program is vital in helping these young hard-working farmers go on to have long successful careers and help boost an industry critical to this state and the nation.

This announcement is in addition to new measures delivered in the Victorian Government's first Budget to actively support young people pursuing a career in Victoria's food and fibre producing sector through allocating up to $12 million to give young farmers buying their first property a head start.

Young farmers under the age of 35 who are buying their first property will be exempt from land transfer duty on the first $300,000 of agricultural land purchased.

The First Farm Grant, managed by Rural Finance, gives young farmers access to business and planning advice or grants to help fund farm improvement projects identified in a development plan.