A $555 million 'lifeline' announced last week by the Federal Government has been slammed by Victoria's Agriculture Minister.
The Government plan, which will be supported by Labor, includes concessional loans and rural financial counsellors. Farmers will be able to apply for loans of up to $1 million, or half what they owe, whichever is less.
Dairy farmers in Victoria, however, will receive only $30 million in concessional loans over the next five months at an interest rate of 2.7 per cent, according to a report by ABC Rural.
Victorian Minister Jaala Pulford said the Federal Government accessed funds at 1.5 per cent interest rate and should be offering a better deal and more money to dairy farmers, according to the report.
The support package aims to help farmers facing financial problems after dairy processors like Murray Goulburn and Fonterra cut farm gate milk prices.
The dairy support package also includes $900,000 for nine new rural financial counsellors in Victoria, Tasmania, South Australia and NSW, to give struggling dairy farmers access to free financial advice, and a $900,000 contribution to Dairy Australia's 'Tactics for Tight Times' program, which helps farmers take a forensic look at their books and chart a course forward for their businesses.
