Dairy Recovery Concessional Loans

Dairy Recovery Concessional Loans are available to assist commercially viable dairy farm businesses in South Australia impacted by the 2016 decisions of Murray Goulburn and Fonterra to reduce farm gate milk prices.

The Australian Government is providing South Australia with a total of $10 million for the provision of:

for the 2017/18 application period.

Key features of the Dairy Recovery Concessional Loans scheme

  • Loans can be used for:
    • debt restructuring
    • providing new debt for operating expenses
    • providing new debt for productivity enhancement activities
    • or any combination of the above.
  • Loan amounts will be up to 50% of the farm business final debt position to a maximum of $1 million.
  • A maximum loan term of 10 years, with interest only repayments for the first 5 years.
  • A variable concessional interest rate applies to the 10 year term of the loan.
  • The variable concessional interest rate is set by the Australian Government and reviewed every 6 months. As at 1 February 2018 the interest rate is 3.09%.
  • Principal and interest repayments apply from years six to ten of the loan, calculated on the basis of a 10 year loan term.
  • The farm business must repay or refinance the remaining loan balance at the end of the loan term.
  • Applications will close when funds are fully committed or on 30 June 2018, whichever occurs first.


To be eligible for a Dairy Recovery Concessional Loan you and your farm business must:

  • Have supplied milk to Murray Goulburn Co-operative Co Ltd and/or Fonterra Co-operative Group in 2015/16.
  • Demonstrate that they meet the dairy recovery concessional loan eligibility criteria. Detailed information about the eligibility criteria for dairy recovery concessional loans is available in the Scheme Guidelines (PDF 1.1 MB).
  • Complete and submit an application with all the necessary supporting documentation including evidence to demonstrate the following:
    • have the capacity to repay the loan
    • have sound prospects for commercial viability within the term of the loan
    • able to provide satisfactory security for the loan.

Please read the Scheme Guidelines (PDF 388.6 KB) for full details.


PIRSA Prudential & Rural Financial Services:

Loan documents

Potential applicants are encouraged to contact PIRSA, Prudential & Rural Financial Services on 1800 182 235 or email pirsa.ruralfinance@sa.gov.au to discuss their proposal and potential eligibility of their farm business.

This program is funded by the Australian Government and delivered by the Minister for Agriculture, Food and Fisheries through Primary Industries and Regions SA (PIRSA).

Other loans

Farmers may also be eligible for:

  • Drought Assistance Concessional Loans which assist commercially viable drought affected farm businesses to continue to operate through drought conditions, recover once the season breaks, prepare for future droughts.
  • Business Improvement Concessional Loans which assist commercially viable farm businesses whose member(s) have exhausted, or will exhaust their Farm Household Allowance (FHA) 1,095 day income support entitlement on or before 30 June 2018 to continue to improve the financial circumstances of the farm business.
Page Last Reviewed: 28 Jul 2017
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