6 December 2016: Beef industry takes drought by the horns
8 December 2016
One month since the introduction of the Australian Government’s Drought Assistance Concessional Loans, the beef industry is leading the herd and taking advantage of savings the loans provide – accounting for more than 76 per cent of applications received by QRAA.
The new loans, introduced on 1 November, provide multi-purpose finance to restructure debt, cover operating costs, recover from drought and improve future resilience. Loans of up to $1 million are available, with a concessional interest rate of just 2.47 per cent.
“This new loan program provides some welcome breathing space for producers – it makes smart business sense whether you’re refinancing existing debt or restocking once conditions have improved,” said QRAA Chief Executive Officer, Cameron MacMillan.
“The beef industry’s uptake of the program has been extremely encouraging and we applaud graziers for taking the initiative and securing the future of their operations.”
For the beef industry, a key appeal is the ability to use the loan to restock, building herd numbers back up to capitalise on improved cattle prices.
“For producers who destocked during the worst of the drought, current prices may be seen as a disheartening hurdle rather than an opportunity,” Mr MacMillan said.
“But these loans can reduce the financial pressure at sale time, providing ten year loan terms at an incredibly low interest rate, including the added bonus of the initial five years interest only.”
Applications for Drought Assistance Concessional Loans close 30 June 2017. Producers are urged not to self-assess, and instead call one of QRAA’s eight Regional Area Manager’s who can meet on farm to discuss producers’ individual situations, options and the application process.
For further information visit www.qraa.qld.gov.au or contact QRAA on Freecall 1800 623 946.