FRESH figures from the Queensland Rural Adjustment Authority show North West producers are still failing to see any value in federal government drought assistance loans.
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As of July 31 only two properties in the North West region applied for a loan under the Farm Finance Concessional Loan scheme and only one successfully qualified for assistance.
This region includes the drought declared shires of Boulia, Carpentaria, Croydon, Diamantina, Doomadgee, Etheridge, Flinders, McKinlay, Mount Isa, Richmond and Winton.
On June 6 the newly announced $100 million Drought Concessional Loan scheme was made available to farmers.
QRAA general manager, program delivery services, Tony O’Dea said none of the latest 12 applications were from these shires.
The federal and state governments signed off on the $50 million Farm Finance Concessional Loans scheme late last year and the latest QRAA figures show the majority of the money was doled out to help 81 successful applicants.
Farmers could apply for up to $1 million dollars under the scheme at a starting interest rate of 4.5 per cent, but that money has to be paid back to the government, in full, after five years.
Under the Drought Concessional Loan Scheme, farmers can borrow money with a 4 per cent interest rate, but they have to provide a Bureau of Meteorology report to prove their property has experienced a rain deficiency equivalent or worse than a one in 10 or one in 20 rainfall event over 12 consecutive months in the last two years.
Mr O’Dea said it was still early days for the Drought Concessional Loans Scheme but he expected almost all of the money to be allocated by mid-2015.
Queensland Liberal National party Senator Matthew Canavan recently admitted the viability test was still causing problems for some farmers and is one of many calling for a Senate Inquiry into rural debt. On the last count 182 applications for concessional loan support between both schemes were declined by the QRAA.
A further $50 million in Farm Finance Concessional Loans was made available on July 31 this year.
Producers interested in applying for a concessional loan can contact QRAA’s customer service officer on 1800623946 to discuss their situation and the application process.
“We will do everything we can to assist them to apply,” Mr O’Dea said.
