West Australian farmers can now apply to the federal government for a drought relief loan of up to $1 million.
WA agriculture and food minister Ken Baston said the drought concessional loans would allow eligible farm businesses to restructure existing debt at a lower interest rate, finance ongoing costs as well as prepare and recover from drought.
To be eligible for a loan, a farm business must be experiencing a one-in-20-year drought event, or a one-in-10-year drought event that has caused significant financial impact.
Applicants must submit a valid Bureau of Meteorology rainfall deficiency report.
Eligible farm businesses will receive a loan of up to $1 million or up to 50 per cent of debt, whichever is lower, at an initial rate of four per cent for a five-year period.
At the end of the loan period, farms will have the option to refinance the remaining amount with a commercial lender or repay the loan in full.
Federal agriculture minister Barnaby Joyce said WA farmers were being offered $20 million in drought concessional loans.
