The DFMC Board has recently decided to broaden DFMC’s Farm Loan scheme to include a new category for business productivity. Previously, the scheme only made loans available to farmers facing extreme climatic conditions – like a drought or a disaster such as a flood.
The new loan category has been named the Business Productivity Support loan and is to ensure farmers can take advantage of business opportunities to maximise the farm productivity by, for example, forward contracting or meeting payment terms for feed purchases. Typical loan approval turnaround times are very quick, and funds are made available to suppliers promptly.
Unlike the Climatic Conditions loans which have declared qualifying factors, the Business Productivity Support loans require suppliers to complete a Dairy Australia Cash Flow to demonstrate considered business decision making.
DFMC Regional Managers will assist with the completion of the Cash Flow and will ensure confidentiality. The Board will be advised that it has been completed to the RM’s satisfaction.
For Business Productivity Support 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 twelve months (whichever is higher).
Director Bernice Lumsden was particularly keen to see the new loan category implemented. After previous seasons where feed costs have leapt up and traditional sources of hay or grain have been unreliable, being able to lock in volumes and prices is crucial in farm planning and management.
For details and conditions visit: http://dfmc.org.au/services/loans/