It started out as a $50,000 loan that farmers could use to buy fodder or grain and repayments did not start until two years after an area was no longer in drought.
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But despite this information coming from NSW Primary Industries Minister Niall Blair’s office on Wednesday, not long after the state government announced a drought support package worth more than $584 million, it is not correct.
A NSW Department of Primary Industries spokesman has since told the Mercury neither of these details exist in the loan, which is called the Drought Assistance Fund.
The spokesman said the fund offered a one-off $50,000 interest free loan to “assist with transport associated with stock, fodder and water; genetic banking of breeding herds and installing on-farm water infrastructure”.
He also said farmers who take up the loan are not required to make a payment in the first two years and have seven years to pay off the entire amount.
The loan does not incur interest at any point.
The discrepancy has frustrated farmers who were trying to make sense of the government’s latest drought support package, which includes $500,000 worth of Farm Innovation Fund loans and three new Doppler radar weather stations.
Take a look at the drought for yourself
Many farmers took to social media to share their thoughts and ask questions about the eligibility criteria.
One Day Closer to Rain (Drought) Facebook page founder Cassandra McLaren said farmers had posted questions on the page and were trying to work out what they could and could not do with the loan.
“Our members are already confused about what’s available and now they can’t even get an answer as to what these measures mean,” she said.
Now with the confusion over the announcement and the frustration of not having some subsidies and things that will be more of a help to the general farming population, it’s just creating more anger.
The government’s announcement came as mapping showed 65 per cent of the state was in drought or at the onset of drought and 34.8 per cent was considered borderline and likely to head towards drought given the current forecast.
In the Hunter 77.9 per cent of the region is in drought or at the onset of drought and 27.9 per cent is borderline. This is the case despite recent rain.