Drought Assistance Fund

This program aims to provide assistance that will promote profitability and resilience.

The purpose of assistance under this program is to provide interest free loans to primary producers to implement systems and management practices that enhance the sustainability of their primary production enterprise by funding:
- Transport of livestock, transport of fodder and/or water
- Water and fodder infrastructure
- Banking of genetic material of livestock
- Activities which promote profitability andr esilience as a result of the on-farm investment

Loans of up to 100% of the net (GST exclusive) cost of the works to a maximum of $100,000 are available. Applicants that have received a loan in the 2019-20 financial year can apply for an additional loan of up to $100,000 in the 2020-21 financial year.

The loan term is two years repayment free from the date the loan is fully drawn down and then up to five years of principal only repayments. Interest is 0%. Principal must be repaid within seven years.

Applicants must lodge an application before commencement of the activity. Payments will be made on receipt of eligible tax invoices.

Eligible applicants must demonstrate that:
- They are the owner and operator of a farm business in NSW.
- The business operates as a sole trader, partnership, trust or private company and trades agricultural products.
- The business is registered with the Australian Taxation Office as a primary producer, and has an Australian Business Number (ABN).
- The owners and operators of the business earn more than 50% of gross income from the primary production enterprise under normal seasonal circumstances.
- The business is being negatively impacted by drought conditions as assessed by the NSW Rural Assistance Authority (RAA), taking into account financial information and the Combined Drought Indicator map.
- The business can support the loan repayments.
- They are classified as a “new entrant”, meaning that they have been operating their farm business for between 12 months to three years and that more than 50% of their gross income will be derived from the farm business within three years of the date of the application.
- The owners and operators of the business do not have gross off-farm assets exceeding $5 million.

Eligible activities include those that promote profitability and resilience and can include costs that would normally be incurred in the course of carrying on a farming operation.