Primary Producers SA has welcomed Premier Peter Malinauskas’ announcement of a state-based concessional loan scheme.
The scheme, announced at the South Australian Grain Industry Awards on Tuesday night, will give drought-affected farmers the opportunity to access up to $250,000 in low-interest loans.
The scheme will be capped at $200 million. Recipients will not have to pay principal or interest payments for the first two years. Over the life of the 10-year loan, recipients will receive concessional interest rates for the first two years at 50 per cent of the Commonwealth 10-year average bond rate, which is currently 2.41 per cent.
The interest rate for years three to 10 will be based on the 10-year Commonwealth bond rate – currently 4.83 per cent – which is lower than the Regional Investment Corporation loans (5.18 per cent).
While the Premier’s initial announcement stated the loans would be available to producers in the Murray Mallee, Riverland and Upper North, PPSA will work with the state government to finalise details so drought impacted farmers across the state can access the loans.
PPSA Chair Professor Simon Maddocks said a state-based concessional loan scheme was the highest priority for PPSA and its members following the worst drought in living memory.
“While we will await the full detail, PPSA wholeheartedly welcomes this commitment,” he said.
“What is most pleasing about this loan scheme is that it is truly concessional, with the state government picking up the shortfall in interest of about $20m.
“In addition, this is not an election commitment. It will be signed off before caretaker mode and thus will be ‘baked in’ to the next term of government.
“PPSA would like to thank the government for listening to the feedback from PPSA and its members. We have worked collectively with our industry members to clarify the needs of our state’s producers, some of whom are still in drought conditions.”
