Farm Loans

​​​DFMC has two types of loan available to make funds available promptly for suppliers:

1. Climatic Conditions

In recognition of the hardships that farmers face during difficult climatic conditions DFMC is pleased to offer active members the facility to secure financial loans to alleviate the pressures of operating farms under such conditions.

Farms seeking loans due to Climatic Conditions must be situated in:

  • for Drought – an eligible area as defined by the United Nations Convention to Comnbat Desertification which may be checked by entering your farm location details in the website for the Regional Investment Corporation – (go to Our Loans / Drought Loans / eligible area of Australia) or
  • for Disaster – an area that is so listed on the Australian Government disaster website or
  • for Post Drought – an area where the end date for drought, as explained above, occurred within the last six (6) months or
  • for Post Disaster – an area where the end date of the disaster declaration occurred within the last six (6) months or
  • for Water Prices – the Southern Region with such policy being invoked when the median water price 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 in the last six (6) months

Maximum Loan Amount

For drought, disaster and water price loans the maximum loan amount is the higher of 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

For all types of post event loans the maximum amount is 30%.

2. Business Productivity Support

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, DFMC will provide the facility to access short-term loans.  In order to qualify a farmer must complete:

  • a Dairy Australia (or similar) 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.

Maximum Loan Amount

The maximum loan amount is the higher of 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


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

At all times the decision whether to lend money under the Farm Loan Policy remains with the Board of DFMC

DFMC may, in respect of new or future loans, discontinue the policy and /or change the guidelines (including the Terms and Conditions).

Terms and Conditions

  1. a DFMC Farm Loan is to be used to fund working capital and operational expenses of the dairy farm business and must not be used wholly or predominantly for personal, household or domestic purposes.
  2. a DFMC Farm Loan must be repaid in full after 12 months or prior to the end of the initial term of the current milk supply agreement whichever occurs first.  Terms beyond this may be considered if a multi-year contract is in force.
  3. the member irrevocably authorises DFMC to deduct or set off from any moneys payable by DFMC to the member any amount payable by DFMC to the member pursuant to the DFMC Farm Loans Terms and Conditions and to pay those amounts to DFMC.
  4. No farmer can have more than one loan outstanding at any one time.
  5. a four percent (4%) interest rate will apply for the duration of the loan which can either be for a period of twelve (12) months or for the duration of the supplier’s current contract term (whichever is the earliest).
    1. Interest will be applied in arrears at the end of each month based on the daily outstanding loan account balance. Repayments will be deducted evenly on a monthly basis over the term of the loan from the supplier’s milk payment.

Applying for a DFMC Farm Loan

If you’re an active DFMC member and qualify through one of the scenarios outlined above and would like financial assistance in the form of securing a loan from DFMC please fill in the attached form.

Download the DFMC Farm Loan Application Form

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

Daniel Sacca
Finance Manager
Dairy Farmers Milk Co-operative
PO Box 4132
Geelong Vic 3220
Mobile: 0415 932 145