Young Farmers Finance

Raising sufficient capital is a major problem facing young people who want to get established in farming. Against this background Rural Finance in association with the Victorian Young Farmers’ Finance Council and the Victorian Government has established the Young Farmers’ Finance Scheme.

The scheme, administered by Rural Finance, is aimed at encouraging the progression of well qualified Victorian farmers into asset ownership.

Eligibility Criteria

Applicants should:

  • Be not more than 40 years of age. Exceptions may apply in special circumstances
  • Possess high personal attributes
  • Have suitable farming experience and training in the type of operation to be pursued
  • Have the ability to manage financial affairs and accumulate savings
  • Have the potential to make a success of the proposed venture based on an established track record
  • Be in genuine need of concessional finance having regard to the resources available within the farming family units
  • Be personally involved in the day-to-day operation of the land purchased
  • A young person who possesses the above attributes may expect to receive priority for loans under the Young Farmers’ Finance Scheme.

Stock and Equipment Purchases

Finance can be provided for the purchase of stock and equipment to enable young farmers to fulfil contracting, leasing or share farming agreements. Applicants are expected to have tenure for their farming activities and make a reasonable contribution from their own savings towards the asset they are purchasing. They must demonstrate a sound knowledge of the industry chosen for their endeavours.

Loans are repayable over a term of up to eight years with a concessional interest rate below normal Rural Finance rates for an initial three years. At the end of the three years, commercial rates apply for the remainder of the term loan.

Leasing Proposals

Finance can be provided to young farmers, not in farm ownership, for the initial cost of establishing a farm lease. Applicants are expected to:

  • Own stock and/or plant
  • Have a secure tenure for the lease
  • Have a sound knowledge of the industry they are entering
  • Demonstrate a capacity to service the lease after year one
  • Meet working and living expenses in addition to loan repayments.

The loans are repayable over a term of up to five years with a concessional interest rate of below normal Rural Finance rates for three years.

Land Purchases

One 2 Grow

Finance is available for suitably qualified young people to purchase their first block of land as a first step towards their ambition of owning and operating a commercial farm. Applicants are required to meet the general eligibility criteria under the Young Farmers’ Finance Scheme.

The land being purchased should ideally be at least 20% of a productive commercial farming unit and be capable of generating sufficient income to meet repayments. The young person will need to have an adequate level of supporting income to meet living and operating expenses.

Loans are repayable over a period of up to 15 years with a discount on the Rural Finance commercial rate for the first five years.

Addition to the Family Farm

Young farmers actively involved in a family farming enterprise may purchase land in their own name to add to the existing operation. When the purchased land in aggregated, it provides a base of sufficient scale for the number of family members involved.

First Farm of Commercial Scale

Finance can be provided for the following scenarios:

The farm being purchased must be of sufficient scale to provide a livelihood.

It also enables existing young farmers who own land to add to their farming base to create an economic farming unit.

Loans for young farmers to purchase either their first commercial sized farm or add to the existing family farm are repayable over terms of up to 18 years. A concessional interest rate below normal Rural Finance rates applies for the first 5 years, after which the commercial rate applies.

We're ready to help

Our Agribusiness Relationship Managers are available to discuss your farming requirements whenever and wherever it suits you - whether this is on-farm, or at one of our 11 offices located throughout regional Victoria.

Contact your local Rural Finance office to learn more about Young Farmers Finance.