Finance loans increase

The scheme is designed to assist farmers experiencing debt servicing difficulties, but considered commercially viable in the long term. It is a different scheme to the Drought Concessional Loans Scheme announced in February by the Federal Government.-

In WA the scheme to assist farm business was set to provide loans from $50,000 to $200,000 to undertake productivity enhancement activities.-

As of July 1, round two will offer higher loan amounts.-

"I recently approved amendments to the scheme guidelines for WA to increase the maximum loan amount available from $200,000 to $400,000," Mr Joyce said.-

"Farm businesses will be able to apply under these changes when applications open in the 2014-15 financial year."-

Although the loan amount will increase, round one concerns still remain.-

The Department of Agriculture and Food WA's latest figures from round one show that 44 applications were received. -

But according to Federal Agriculture Department data, at the end of March only seven applicants had been approved.-

A federal spokesperson said the figures for approved loans had not been finalised for round one, however they would be available within weeks.-

There is no indication as yet, as to why figures are so low for WA. -

WA Labor Member for the Agricultural Region Darren West said he was concerned about the package, with the criteria the main issue.-

"It vindicates the farm lobby groups who asked repeatedly that the State Government set the same eligibility criteria as other States,'' he said.-

"Everyone knew that this would be the case except the Premier and the Agriculture Minister."-

Mr Joyce said the loan scheme's guidelines had been tailored to meet the needs of farm businesses in each jurisdiction, based on advice from relevant State and the Northern Territory Governments.-

Mr West said he was concerned the money not used in round one would not stay in WA.-

"Mr Joyce has confirmed the money will return to Canberra and has openly questioned WA's handling of the package," he said.-

WA Agriculture and Food Minister Ken Baston said the majority of the 44 applicants to the scheme in WA were still being processed, which is likely to take some time.-

"While it would have been great to see all of the available capital in WA, we were never out to push additional debt onto farmers or to become lenders of last resort,'' Mr Baston said.-

"We were out to help the Federal Government in facilitating cheaper loans for primary industry businesses planning to increase their productivity into the future."-

Mr Baston said he hoped for lots of applicants for round two.-

"I am pleased some businesses have taken the opportunity of applying for funds and if it forced the banking sector to be more competitive, then that is a very good outcome," he said.-

"I am confident there will be more applications next time around as, among other activities, farmers and pastoralists seek to increase stock levels."