AgriStarter Loan
Purchase or develop an existing farm business or support succession arrangements.
Purpose
Purchase or develop an existing farm business or support succession arrangements.
There are two types of AgriStarter Loans:
First Farmer
First Farmer
Apply for a first farmer loan if you are seeking to purchase, establish or develop your first farm business in which you hold or will hold the sole interest or a controlling interest. Also apply if you are a lease or share farmer and wish to purchase, establish or develop a farm business, even if this results in the business no longer involving share farming or leasing.
Use this loan to:
- Refinance farm business loans and manage debt to improve cash flow
- Purchase first farm property, infrastructure and other assets as part of establishing or developing your first farm business
- Develop a farm business that involves share farming or leasing arrangements
- Invest in new infrastructure, machinery or productivity enhancements
Succession
Succession
Apply for a succession loan if your farm business is undertaking or has undertaken succession arrangements. Succession planning involves the transfer of ownership and control of farming assets to the next generation or suitable responsible entity to continue business operations.
Use this loan to:
- Refinance farm business loans to facilitate succession arrangements.
- Pay costs associated with succession planning such as legal costs and stamp duty
- Purchase land, infrastructure and other farm business assets as a part of taking ownership of an existing farm business under succession arrangements
- Invest in new infrastructure, machinery or productivity enhancements to facilitate succession arrangements.
Loan terms
$2m
Maximum amount
5.18%
Variable rate*
10
Year term
5
Years interest only
$0
Extra repayments
$0
Application Fee
$0
Early payout fee
No
Redraw
Percentage of total debt
At least 50% of your total debt must stay with a commercial lender.
Frequency of repayments
Monthly, quarterly, or bi-annually, tailored to the cash flow of the farm business.
Repayment structure
Five years interest only, then five years’ principal and interest over a 10-year loan term, noting the principal repayment component is actually calculated over a “notional” 15- year term. After 10 years, you can refinance any remaining balance with a commercial lender.
Full terms and conditions are available in the loan guidelines.
* Interest rates effective from 1 February 2025. Interest rates reviewed every 6 months.
AgriStarter Loan information webinar
Watch a replay of our latest information webinar to learn how a RIC AgriStarter Loan can support eligible farm businesses during start-up or succession.
Eligibility
Discover if a RIC loan is right for you, check your eligibility with our quick quiz.
Take our AgriStarter Loan quick quiz
You
- are an Australian citizen or permanent resident
- contribute or plan to contribute at least 50% of your labour to the farm business
-
earn or plan to earn at least 50% of your income from the farm business (under normal circumstances)
Your business
- is in financial need of a loan
- is financially viable or has sound prospects of becoming financially viable within the term of the loan
- undertakes all primary production aspects of the business wholly within Australia
- operates as a sole trader, partnership, a trust or a corporation
- is registered for tax purposes in Australia with an ABN and is registered for GST
- has the capacity to repay the loan
- has existing commercial debt or can demonstrate an agreement to obtain commercial debt within a reasonable time
- is an eligible industry such as agriculture, horticulture, pastoral, apiculture (beekeeping), or aquaculture industry as per eligible ANZSIC code industries
- is not under external administration or bankruptcy
- has at least one member who is an Australian citizen or a permanent resident
- has a connection to ‘constitutional trade and commerce’
You must
- provide security for the loan
- secure the support of your commercial lender for the proposed loan
- repay the loan
You cannot use this loan for
- purchase of private and domestic assets
- payment of private and domestic expenses
- refinancing non-farm business related debt
- purchase of and/or investment in non-farm assets and payment of non-farm expenses
- paying out dividends
- reimbursement for depreciation of assets tax or other statutory payments
- your own labour costs
- anything that you have already received government funding for (except to refinance debt from previous concessional loans)
- any other non-eligible use listed in the loan guidelines
Resources
Guidelines
We will assess your application against the criteria in the loan.
Read the detail on who can apply for a loan and what happens after you apply.
Document checklist
If applying online, follow the document checklist to ensure you submit a complete application.
Offline application form
We recommend you use the online application form.
Only use the offline form if you prefer to submit your application by email or post.
Complete this form on your computer, or print and fill it in by hand using a black or blue ink pen only.
- Right click on the link and select 'save target as' or 'save link as' to download the form.
- Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.
- Save the application form regularly as you are filling it in.
- The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.
Guidelines
We will assess your application against the criteria in the loan.
Read the detail on who can apply for a loan and what happens after you apply.
Document checklist
If applying online, follow the document checklist to ensure you submit a complete application.
Offline application form
We recommend you use the online application form.
Only use the offline form if you prefer to submit your application by email or post.
Complete this form on your computer, or print and fill it in by hand using a black or blue ink pen only.
- Right click on the link and select 'save target as' or 'save link as' to download the form.
- Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.
- Save the application form regularly as you are filling it in.
- The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.
Frequently asked questions
AgriStarter Loan applicants are expected to have built up equity prior to applying. Addressing security requirements may be assisted through the applicant’s cash contribution to their purchase or security over net equity in off-farm assets e.g. residence or investment properties offered as security.
Relevant on-farm experience means that you or a member of your farm business having previously owned the business for 3 years or more.
Equivalent experience is assessed on a case by case basis and can include working on the family farm, managing another farm business, Agribusiness qualifications, experience working closely with the manager of a farm business, or other complementary qualifications or experience.
Read our explainer article for more information.
Succession planning is the development of a plan that allows the smooth transition of the management of a farm and the farm assets from the one generation to the next.
Commercial debt is debt that has been established upon commercial interest rates, terms and conditions. This may include financial institutions and other providers where formalised loan contract is in place. The contract would typically include commercial interest rate, repayment schedule, loan term, security arrangements and mortgage documentation.
Read our explainer article for more information.
Loan scenarios
Tom and Alice have always wanted to own their own farm after Alice spent a lot of time in regional Victoria on farms with her father who was a shearer. Tom caught the farming bug showing steers with his school. They have both worked hard to establish a small residential property portfolio and a small beef cattle breeding herd currently being agisted on the property that Tom is managing. The portfolio and cattle provide them with equity and security to access a loan to buy their first farm.
They have spoken to their bank about applying for a loan to purchase a farm and will apply for an AgriStarter Loan. They plan to finance up to half of the purchase and pay interest only on the RIC portion of the loan for the first five years, allowing to build equity with their bank loan. With Tom’s relevant management experience and ongoing employment, they have provided a comprehensive business plan on how they plan to repay the RIC loan during the term. The business plan includes how they will develop the property, build up breeder numbers and expand their operation so the farm will be their principal business and be able to supply interstate markets.
Melissa is a fifth-generation South Australian grazier who joined the trading partnership with her parents at the first stage of farm succession five years ago. As the enterprise recovers from drought, Melissa has plans to improve the productivity of the farm and her parents are keen to stick to the succession plan to allow them to retire as planned.
Melissa plans to apply for an AgriStarter Loan to progress towards owning a majority share of the farm business including land. Her parents will help guarantee the loan as per their succession plan. Melissa will be borrowing an equal amount from her bank to fund some of the property purchase and to invest in new infrastructure to increase the farm business’s efficiency and reduce operating costs.
Candice and Alex are currently working through farm succession with their parents and are looking to return home to start working with their parents. Fortunately, the current enterprise will be big enough to accommodate Candice and Alex with a viable property each, once their parents have retired. Their parents want to be sure that both children are committed and will be able to take over their own enterprise even though they have grown up on the farm.
Both Candice and Alex will take over a percentage of their parent’s bank debt and borrow the equivalent amount from the RIC to each buy 25 per cent of the trading entity and a portion of the property identified in the family succession plan. As Candice and Alex build their equity through reducing their current debts, they will be able to purchase more land and a share in the business.
Interested in an AgriStarter Loan?
Explore our educational toolkit to help you understand if you are eligible for a RIC loan.
Ready to start a RIC loan application?
Check what you need before starting an application, download helpful resources and apply for a RIC loan.
Ask a question
Get in touch if you have a question about the AgriStarter Loan.