Drought Infrastructure Fund

To be eligible for the Drought Infrastructure Fund, the applicant must have demonstrated that:

• they are the owner or operator of the farm business where the work is to be carried out 
• the business operated as a sole trader, partnership, trust, or private company and trades agricultural products
• the business was registered with the Australian Taxation Officer as a primary producer and had an Australian Business Number (ABN)
• the owner/operator earns more than 50% of gross income from the primary production enterprise under normal seasonal circumstances; or the farm business is classified as a “new entrant”, meaning it has been operating for between 12 months to 3 years and more than 50% of  gross income will be derived from the farm business within 3 years of the date of the application (the applications of new entrants are considered on a case-by-case basis)
• they do not have gross off-farm assets exceeding $5,000,000 (excluding funds in a registered superannuation fund). 

Additional eligibility requirements:

• Application must be lodged before commencing the project.
• Loans must be fully drawn within 12 months of approval.
• Applicants must permit the RAA, or any other person authorised by the RAA, to enter the property to enable inspection of the works.
• Payments will be made on receipt of eligible, valid invoices, and the RAA may inspect the works under Section 9.2 of the guidelines to ensure it is eligible and compliant.
• Valid tax invoices submitted in relation to this application may not be used to secure funding under any other NSW Government scheme.
• Successful applicants must provide the RAA with satisfactory security in accordance with the RAA’s security requirements.
• Applicants must be able to demonstrate that the works will have a significant beneficial impact on the land, the farming business and aid in preparing for adverse seasonal conditions.
• Applicants must be able to demonstrate that the farm business has long-term viability and has the capacity to repay the loan sought.
• Applicants must demonstrate the proposed works are part of the Farm Business and Risk Assessment Plan. 

Funding by way of a loan was available to meet the cost of carrying out permanent capital works that would have a significant beneficial impact on the land, the long-term profitability of the business and address adverse seasonal conditions. Such works would fall into four main categories and include, but are not limited to, the following examples:

Drought preparedness:

• stock and domestic water supply
• cap and piping of bores in the artesian basin
• refurbishing/desilting ground tanks
• planting perennial species
• stock containment areas.

Environment:

• soil conservation
• erosion control
• woody/noxious weed/serrated tussock control
• solar power conversions.

Farm infrastructure:

• fodder storage facilities (silo/hay shed)
• farm/shearing sheds
• fencing/road works
• storm/exclusion netting
• new/upgrading of irrigation systems.

Natural resources:

• planting trees for shade/wildlife corridors
• livestock effluent control
• fencing off of river banks
• disaster mitigation works (flood pads).

Applicants could apply for up to 100% of the net, GST exclusive cost of eligible works to a maximum of $1,000,000 with a maximum of $1,000,000 outstanding at any time.

Activities that would not be supported by a Drought Infrastructure Fund loan include:

• farm plant, machinery, all vehicles and transportable items such as field bins, and grain augers
• all residential farm premises/buildings
• use of own machinery or own labour
• all farm inputs
• non-farm related items.