The proposal is to establish a Future Farmer Guarantee Scheme (FFGS) that would guarantee 40% of an eligible farmer’s new commercial loan up to a maximum value of $1.0 million.

Applications for the Guarantee would open for an 18 month pilot from 1 January 2023. Eligible loans would be guaranteed for a maximum of 10 years, with an option to extend the loan term by 2 years for applicants who are experiencing significant financial hardship. A further allowance is provided to account for mediation or recovery action.