The Regional Investment Corporation’s (RIC) Plantation Loan launched today and applications are now open. The new loan is available to eligible farmers and businesses to support new plantations and the re-establishing of plantations damaged by the 2019-20 Black Summer Bushfires.
RIC Chief Executive Officer Bruce King said the Plantation Loan provides a low cost opportunity for eligible farmers and businesses to develop new plantations or replant bushfire-damage plantations, and can be used for start-up costs including buying land.
“The interest-only terms at a concessional rate during the establishment stage may assist a farmer or a forestry business to develop their plantation project, including purchasing land for developing a plantation, site preparation activities, fencing and roads,” said Mr King.
“The RIC is helping to build a stronger and more financially resilient Australia through its low cost loans. We’re pleased to make the new Plantation Loan available to support farmers to diversify their operations and forestry businesses and to improve future timber supply.”
The Plantation Loan provides up to $2.5 million over a 20-year loan term with interest-only for the first 13 years then principal and interest payments for the remainder of the loan. The loan repayments can also be structured so any remaining principal may be refinanced by a commercial lender at the end of the loan term.
In the 2021-22 Budget the Australian Government committed $37.5 million of existing RIC loan funding for the Plantation Loan in 2021-22.The RIC was provided with an additional $0.8 million funding in 2021-22 to administer the loans.
The RIC also provides low interest loans for farmers to buy or establish a new farm business or succession planning using the AgriStarter Loan, invest in their farm business using the Farm Investment Loan and to prepare for, manage through or recover from drought using the Drought Loan. The AgBiz Drought Loan is available to farm-related small businesses supplying drought-affected farmers.
