Farm Loans

In recognition of the hardships that farmer face during difficult climatic conditions, Dairy Farmer Milk Co-operative is pleased to offer active members the facility to secure financial loans to alleviate the pressures of operating farms under such conditions.

Following is a summary of the Policy Guidelines /  Terms and Conditions.  Full details are contained in the policy document and application form (click on the link at the bottom of this document to view / download).

Farms seeking loans must qualify in one of the following categories:

  • For drought (Qld, Vic & SA) – an area that has experienced a rainfall deficiency outcome (e.g. a one in 10 or 20 year event) which extended 12 continuous months or more in the last two years.  That is, the same criteria as applies for the Drought Concessional Loans Scheme eligibility in your state as administered by the relevant state authority, e.g. Rural assistance Authority or Department of Primary Industry, OR
  • For Drought (NSW) – see policy guidelines for full details (click on the link below).  Criteria includes occurrence of a one in 20 year and one in 10 year rainfall deficiency plus farm having to purchase hay / silage or stock water, OR
  • For Disaster – an area that is so listed on the Australian Government disaster website (applies to all regions), OR
  • For Post Drought – an area where the latest eligibility date for drought, as explained above occurred within the last six months (applies to all regions) OR
  • For Post Disaster – an area where the end date(s) of the disaster declaration occurred within the last six months (applies to all regions), OR
  • For Water Prices – the Southern Region with such policy being invoked when median water exceeds $200 per megalitre as detailed on the Victorian Water Register website, OR
  • For Post Water Prices – the Southern Region where the date the median water trading prices last exceeded $200 per megalitre occurred within the last six months.

For drought, disaster and water price loans the maximum loan amount is either 50% of a member’s share capital in the co-operative or 50% of the average net monthly milk payment based on the previous 12 months (whichever is the higher).  For all types of post-event loans the maximum loan amount is 30%.  A four percent (4%) interest rate will apply for the duration of the loan which cab be either for a period of 12 months or for the duration of the supplier’s current contract term (whichever ends earliest).

In all cases the loan is to be used to fund the working capital and operational expenses of the dairy farm business and must not be used wholly or predominantly for personal, household or domestic purposes.

Additionally, the co-operative has placed limits on the total loan funds to be approved both on an overall co-operative basis and per region.

Download the DFMC Farm Loan Policy Guidelines and Application Form

If you would like more information about applying for a loan, please contact:

Chris Clark
DFMC Share Registrar
Dairy Farmers Milk Co-operative
PO Box 4699 Casula Mall NSW 2170
Mobile: 0405 172 803