ASSET FINANCE — NEW FARMERS
The AgriStarter Loan: what it is and how to access it.
The NSW Government’s AgriStarter Loan gives young and new farmers access to low-rate government finance. Here is a plain-language guide to what it covers and how it works alongside commercial lending.
The AgriStarter Loan is administered by NSW Rural Assistance Authority (RAA) on behalf of the NSW Department of Primary Industries. It is a concessional loan — the interest rate is set by the government well below commercial rates — designed specifically to help people enter or expand in agriculture when they might otherwise be locked out by limited capital.
The loan is not a grant. It must be repaid, but on terms that are far more favourable than a commercial lender will offer a new farm business. The purpose of the scheme is to lower the barrier to entry for young Australians who want to build a career in agriculture.
ELIGIBILITY AT A GLANCE
- Age requirement
- Primary applicant under 50 at time of application
- Loan limit
- Up to $1 million per eligible farm business
- Eligible purposes
- Land purchase, livestock, plant and machinery, water infrastructure, farm improvements
COMMON QUESTIONS
Can I combine an AgriStarter Loan with a commercial loan?
Yes. This is actually one of the most effective structures for a new farm acquisition. The AgriStarter component covers a portion of the purchase at the concessional rate, and a commercial lender covers the remainder. Clunes structures applications that present both funding sources clearly so lenders understand how the total debt is serviced and secured.
What does “farm business” mean for eligibility?
The RAA assesses eligibility based on the primary purpose of the enterprise. The business must be principally a farm operation — not a lifestyle rural property. You will need to demonstrate that the business is, or will be, deriving income from agricultural activity. The RAA has its own assessment criteria, and Clunes can help you understand whether your situation is likely to qualify before you invest time in a full application.
How does Clunes help with AgriStarter applications?
We are not the RAA, and we do not approve AgriStarter Loans — the RAA does that directly. What we do is help you understand whether the loan suits your situation, assist in structuring the commercial finance component alongside it, and ensure your application presents clearly to both the RAA and any commercial lender. Getting the structure right before lodging anything saves significant time.
Discuss AgriStarter and your wider finance package.
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