Document ID: chunk:federal_register_of_legislation:F2022C00406:reg:9:p1
Version: federal_register_of_legislation:F2022C00406
Segment Type: reg
Provision Reference: reg 9 (pt 1/2)
Character Range: 9707–12359

9  Grant of a first farmer loan

Eligibility requirements—first farmer loans
 (1) Subject to subsection (2), the Corporation may grant a loan to a first farmer where the Corporation is satisfied that:
 (aa) the loan is for one or more of the following purposes:
 (i) purchasing the sole or a controlling interest in a farm business;
 (ii) establishing a farm business in which the first farmer will hold the sole or a controlling interest;
 (iii) developing a farm business that the first farmer has recently acquired or will acquire, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;
 (iv) developing a farm business that the first farmer has recently established or will establish, being a farm business in which the first farmer holds or will hold the sole or a controlling interest;
 (v) developing a farm business that involves share farming or farm leasing (or both), being a farm business in which the first farmer holds the sole or a controlling interest; and
Note 1: A first farmer loan may be granted for one or more of the above purposes. The loan can be used to, among other things, purchase an interest in a farm business, acquire farm assets (including land, infrastructure, equipment and stock), refinance loans associated with a farm business, and cover farm costs (including operating expenses, costs associated with purchasing an interest in a farm business and costs associated with acquiring farm assets).
Note 2: Where the loan is granted for the purpose of developing a farm business that involves share farming or farm leasing (or both), the loan can be used to develop the farm business even if this results in the farm business no longer involving share farming or farm leasing.
 (a) the first farmer has obtained or will obtain within a reasonable period a loan on commercial terms; and
 (b) the first farmer is in financial need of a concessional loan; and
 (c) the first farmer has the capacity to repay the loan; and
 (d) the farm business will be an eligible farm business; and
 (e) if subsection (1A) does not apply to the first farmer—the first farmer has not previously held the sole or a majority interest in a farm business other than a recently‑acquired or recently‑established farm business in respect of which the first farmer loan is sought; and
 (f) the first farmer has at least three years of relevant on‑farm or equivalent experience; and
 (g) the first farmer intends to have the farm business as their principal business pursuit.
 (1A) For the purposes of paragraph 9(1)(e), this subsection applies to a first farmer who is seeking a first farmer loan if