Drought Recovery
Concessional Loans Scheme
(South Australia)
Important Information for Applicants
Prior to completing the Application Form
Prior to completing the Application Form it is recommended that Applicantsread the Drought Recovery Concessional Loans Scheme guidelines, which are available on the PIRSA website: Applicants are also encouraged to contactPIRSA, Prudential & Rural Financial Servicesstaff toll free on 1800 182 235, to discuss their proposal. This will assist Applicants to determine whether they may be eligible for assistance.
Loan assessment
Applications will be assessed in the order of receipt based on the date a fully complete application is received by PIRSA, Prudential & Rural Financial Services.
Please note that an application will only be accepted as complete whenALL information listed in the Applicant Checklist (page 2) is received.
If your application is incomplete it will notenter the assessment queue untilALL required information is provided to PIRSA.
CLOSING DATE FOR APPLICATIONS: When funds are fully committed or 30 June 2016,whichever occurs first
How to Apply
Application forms and further information on the DroughtRecovery Concessional Loans Scheme are available on the PIRSA website:
Completed applications should be submitted to PIRSA by either:
Post:Primary Industries and Regions SA
Prudential & Rural Financial Services
GPO Box 1671
ADELAIDE SA 5001
Fax: 08 8226 0229
Email:
In Person: Level 14, 25 Grenfell Street, ADELAIDE SA 5001
Enquiries
If you have any questions, please contact PIRSA, Prudential & Rural Financial Services toll free on 1800 182 235 or by email:
Applicant Checklist
The following items must be provided to PIRSA with this application. If your application is incomplete it will not enter the assessment queue until all required information is provided to PIRSA.
- DroughtRecovery Concessional Loans Scheme Application Form that is complete (in all sections) and has been signed by all of the owners of the farm business.
- Business financial statements and tax returns for the2011/12,2012/13 and 2013/14financial years, including profit and loss statements, balance sheets, stock trading accounts and depreciation schedules. Note: please provide tax returns for the farm business and all related partnerships, trusts and companies, as well as for allnon-farm businesses owned by the owners of the farm business.
- Personal tax returns for owners of the farm business for the 2012/13and 2013/14financial years, including allindividual proprietors if a sole proprietor / partnership, all directors / shareholders if a company and all trustees / beneficiaries if a trust.
- Business financial statements and tax returns and personal tax returns for 2014/15 (if available). If they have not been completed, please provide an income and expenditure statementfor the period 1 July 2014to 30 June 2015.
- Cash-flow budget for at least the next twelve months (2016 season),which includes projected income & expense figures and closing balances. The cash-flow should be certified by your Bank as being a true copy of the latest cash-flow provided by your business to them and include underlying assumptions for Income.
- Refer to Question 13 of the Application Form “Budgets”. Applicants have the option of providing either:
- Monthly Cash-flow budget forthe 2017 season OR
- Annual Budgets for 2015/16 and 2016/17 using the budget template outlined in Question 13.
- A valid Bureau of Meteorology Rainfall Deficiency Report for each of your farming properties.
- Completed Drought Management Plan. The plan is available on the Drought Recovery Concessional Loans webpageaccessed through
- Completed Lenders Certificate(s) signed by a Bank Manager or Stock Firm Finance Manager. Note: a separate copy of this form is to be completed by each of your lenders.
Note: Please provide copies of tax returns where possible. Tax returns and financial statements will not be returned unless specifically requested.
1.Applicant Details– The farm business applying for the Drought Recovery Concessional Loan
Business Name:Trading Name:(if applicable)
ABN / ACN-If applicable
Do you trade as? Sole Trader Partnership Company Trust (refer to the next question)
Trustees Name- full name(s) of the Trustee(s) if the business trades as a Trust
How long have you owned and operated this business. / Years
2.Eligibility Checklist– If the answer to any of the questions below is No, the applicant will be ineligible to apply for a Drought Recovery Concessional Loan.
For information about Drought Recovery Concessional Loan eligibility, contact PIRSA, Prudential & Rural Financial Services on 1800 182 235 or refer to the program Guidelines at
The farming business is wholly located in Australia. / Yes NoThe majority of the farm business is conducted in South Australia. / Yes No
At least one member of the farm business is an Australian permanent resident. / Yes No
You have owned and operated the farm business for at least the past 3 consecutive years. / Yes No
Your farm business is registered for tax purposes in Australia with an Australian Business Number (ABN) and is registered for Goods and Services Tax (GST).
Note: Public Companies are not eligible to apply. / Yes No
The farm business is involved within the agricultural, horticultural, pastoral, apicultural or aquacultural industries. / Yes No
At least one member of the farm business is a farmer who under normal circumstances contributes at least 75% of his/her labour to the farm and derives at least 50% of his/her income from the farm business. / Yes No
You can confirm that your Farm Business is not under External Administration or bankruptcy proceedings and the business owners are not bankrupt or subject to bankruptcy proceedings. / Yes No
Your Farm Business has provided a valid Bureau of Meteorology Rainfall Deficiency Report for each of your farming properties. / Yes No
You can confirm that yourfarm business has not received a Drought Recovery Concessional Loan in any other State or Territory. / Yes No
Your farm business has the ongoing support of your current lender(s). / Yes No
2.Eligibility Checklist (Continued)
Your Farm Business can demonstrate Oneof the following:Option A
The Farm Business is located in an area that has experienced a rainfall deficiency equivalent to, or worse than, a 1 in 50 or 1 in 100 year rainfall event, as indicated in a valid Bureau of Meteorology’s Rainfall Deficiency Report anddemonstrate the Farm Business has:
- experienced a Significant Financial Impact over at least a two year period (which can include the forthcoming season); and
- taken reasonable steps to prepare your business for drought,demonstrated through an acceptable Drought Management Plan. OR
The Farm Business is notlocated in an area that has experienced a rainfall deficiency equivalent to, or worse than, a 1 in 50 or 1 in 100 year rainfall event, but has attached a valid Bureau of Meteorology’s Rainfall Deficiency Report anddemonstratedthe Farm Business has:
- experienced a Significant Financial Impact as a direct result of the effects of drought over at least a three year period (which can include the forthcoming season); and
- undertaken appropriate Drought Management Activities identified in an acceptable Drought Management Plan, for at least a three year period, to prepare the Farm Business for the effects of drought.
3.Contact Details–the contact person for your farm business
Contact Person Name:Phone Number: / Mobile Number:
Fax Number: / E-mail Address:
Property Address:
of the farm business / Postcode:
Postal Address:
(If different to above) / Postcode:
4.Business Owners– Please list details of all the registered proprietors. If the business is a company, please provide details for all Directors and Shareholders.
Full Name / Date of Birth / Australian Citizen? / Percentage of labour contributed to the farm business/ / / Yes No / %
/ / / Yes No / %
/ / / Yes No / %
/ / / Yes No / %
/ / / Yes No / %
/ / / Yes No / %
/ / / Yes No / %
5.Farm Property Details
5.1Please provide details of all farming property in which the farm business and its owners have an interest, including interstate properties. If there is insufficient space, please attach a list.
5.1.1 Land Owned: Please provide details of all land owned by your business.
Name of Owners - Registered owner(s) of the property / Location -Hundred and Section Numbers or name of pastoral lease if pastoral property / Title ReferencePlease list the CT/CL,Vol Folio Ref / Area
of property / Current Market Value
ha / $
ha / $
ha / $
ha / $
ha / $
ha / $
Total / ha / $
Please state how you arrived at the current market value of the above properties:
5.1.2 Land Leased: Please provide details of land leased in or leased out by your farm business.
Name of Owners -Registered owner(s) of the property / Location -Hundred and Section Numbers or name of pastoral lease if pastoral property / Leased in/out? / Areaof property
In Out / ha
In Out / ha
Lease income per annum / $ / Lease payment per annum / $
Lease Expiry Date / / /
5.1.3 Land Share-farmed: Please provide details of land share-farmed in or out by your farm business.
Name of Owners -Registered owner(s) of the property / Location -Hundreds and Section Numbers. / Share-farmed in/out? / Areaof property
In Out / ha
In Out / ha
Your share of crop proceeds %
5.2 Farm Overview:
Briefly describe the nature of your farm activities, including a summary of your cropping, livestock horticultural and other enterprises.5.3 Details of Land Use:
Land Use / Own Land(Area) / Land Leased & Share-farmed In (Area)
Cropping - Dryland / ha / ha
Cropping - Irrigated / ha / ha
Grazing - Improved Pastures / ha / ha
Grazing - Unimproved Pastures / ha / ha
Undeveloped Land - including remnant native vegetation / ha / ha
Total Area / ha / ha
Rainfall
Annual Average Rainfall / mm / Average Growing Season Rainfall / mm
Soils
Briefly describe the main soil types present on the farming property and any issues which affect enterprise productivity and management.
5.4 Farm Improvements and Infrastructure
Building / Description (type size)& Construction
(e.g. brick & tile) / Location
(Section & Hundred) / Condition (good, fair, poor)
Main Homestead
Homestead 2
Shearing shed
Equipment Sheds
Feedlot
Irrigation infrastructure
Other (specify)
Other (specify)
Other (specify)
Are Farm Improvements and Infrastructure adequate? / Yes No (provide details below)
Details of farm improvements and infrastructure improvements required.
5.5Fencing
Is your fencing adequate? / Yes No (provide details below)Details of fencing improvements required.
6.Plant and Equipment
Is your plant and equipment adequate? / Yes No (provide details below)Details of plant and equipment upgrade required.
7.Details of Farm Programs
Dry-land Cropping / Crop e.g. cereal and fodder crops / Last 12 months / Normal seasonHa. / Tonnes / $ / Ha. / Tonnes / $
Irrigated Crops / Crop e.g. Lucerne / Last 12 months / Normal season
Ha. / Tonnes / $ / Ha. / Tonnes / $
Livestock Trading / Livestock type
e.g. Vealers / XB Lambs / Last 12 months / Normal season
Number / $ / Number / $
Sales
Purchases
Wool / Last 12 months / Normal season
Number of Bales sold
Ave Flock Micron
Total $
Dairy / Average Number of Milkers
Total litres produced per annum
Total $
7.Details of Farm Programs(Continued)
Other / Other Enterprises -Briefly describe any other enterprises operated by your business, not already described above e.g. contracting, tourism, etc. Please include details of annual income and expenses.8.Water Resources
a.Underground Water
/ Prescribed Area / Well No / Annual AllocationML
ML
b.Other Water Supplies
/ Details - include unregulated supplies and storage / StorageML
ML
c.River Murray Irrigation
/ Irrigation Area / Trust / Licence No / Water EntitlementML
9.Loan Request
Step 1 – Calculate the Eligible Debt
Eligible Debt is debt established on commercial rates, terms and conditions and includes existing debt that has been debt restructured under a FarmFinance Concessional Loan or a Drought Concessional Loan.
Calculate the Eligible Debt(Attach a list if insufficient space).Details of Current Eligible Debts
Account Name / Bank/Financier / Loan Type / Loan Balance
(Eligible Debt)
Eligible Debt / $
Eligible Debt x 50% / $
Step 2 – Calculate the Maximum Drought Recovery Loans Scheme loan that your farm business can apply for. Please complete either i or ii below before proceeding to Step3.
- To be completed by Applicants who do not have a Farm Finance Concessional Loans Scheme and/or a Drought Concessional Loans Scheme loan.
A Eligible Debt x 50% - (Step 1) / $
B Max. Drought Recovery Concessional Loan (cannot exceedA(above) and maximum $1 million) / $
- To be completed by Applicants who currently have a Farm Finance Concessional loan and/or Drought Concessional Loans scheme loan.
A Eligible Debt x 50%(Step 1) / $
B LessFarm Finance Concessional Loan(current loan balance) / $
C LessDrought Concessional Loan(current balance)*. / $
D Calculate A – (B+C) / $
Max. Drought Recovery Concessional Loan (cannot exceed D(above) and Maximum of $1 million) / $
* Based on the current loan balance of the Drought Concessional Loans Scheme (DCLS) loan, less any funding requested to refinance operating expenses and/or drought recovery and preparedness components of the DCLS loan - refer to Step 3, Part C below.
Step 3 – Provide details of requested Drought Recovery Concessional Loan funding
- Funding for Planting activities:
Planting activities include the planting, establishment, reinvigoration and harvesting of crops (including pastures, fodder and horticulture) that are usually grown by the Farm Business. Loans will be limited to eligible activities associated with the area of the Farm Business property currently developed for cropping or improved pasture. Examples of eligible Planting activities are outlined in Section 3.1 of the Drought Recovery Concessional Loan Scheme guidelines.
Details of Planting activities and associated expenses(Attach a list if insufficient space).Planting activities and associated expenses / Est. start date / Est. completion date / Estimated cost
Total Planting/Restocking Funding Sought / $
- Funding for Restocking activities
Restocking activities include the purchasing of livestock and may include, but are not limited to, breeding units (e.g. replacement cows or ewes), stock for short-term growing, fattening or trading and sheep for wool production. Loans will be limited to eligible activities associated with the cost of purchasing stock in line with usual operating practices up to the average herd size/stocking rate for the Farm Business over the last three years (excluding years where the Farm Business destocked either to prepare for or manage the effects of drought). Examples of eligible Restocking activities are outlined in Section 3.2 of the Drought Recovery Concessional Loans Scheme guidelines.
Details of Restocking activities and associated expenses (Attach a list if insufficientspace).Restocking activities and associated expenses / Est. start date / Est. completion date / Estimated cost
Total Restocking & Associated Activity funding sought / $
- Funding for Refinance ofOperating Expenses and/or Drought Recovery and Preparedness Activities component of an existing Drought Concessional Loan
A Drought Recovery ConcessionalLoan may be used to refinance in full or in part the amount of an existing Drought Concessional Loan which was provided for Operating Expenses and/or Drought Recovery and Preparedness Activities.
Refinance of Operating Expenses and/or Drought Recovery and Preparedness Activities component of an existing Drought Concessional Loan.Details of debts to be refinanced / Amount
Total / $
Step 4 – Calculate your Drought Recovery Concessional Loan Amount
Calculate the amount of the Drought Recovery Concessional Loan that your farm business is applying for.
Drought Recovery Concessional Loan AmountA.Maximum Drought Recovery Loan – Step 2 (above) / $
B Total Loan Requested – Total of Steps 3A, 3B & 3C(above) / $
Drought Recovery Concessional Loan Amount (Lesser of A & B) / $
10.Requested Loan Terms and Conditions & Loan Security Offered
List your preferred Loan Terms and ConditionsLoan Term / Years (Maximum 10 years)
Interest only / Years (Maximum 5 years) then Principal and Interest
Interest Frequency / Monthly Quarterly: months of / / /
Half Yearly: months of / Annually: month of
Loan Security Offered- successful applicants must provide satisfactory security to secure the loan. Please list all farming properties to be offered as loan security if your loan application is approved.
Name of Owners-Registered owner(s) of the property / Property Detail
Title reference or location (Hundred and Section Numbers or name of pastoral lease if pastoral property) / Mortgage to beprovided to PIRSA(First or Second Mortgage)
11.Asset Purchases & Sales
Please provide details of assets purchased or sold over the value of $50,000 in the last twelve months. Details should include real estate (both farm and non-farm), plant, equipment and vehicles, as well as non-farm assets such as shares and non-farm businesses, real estate etc. Please exclude livestock purchases / sales.
Description of asset purchased or sold / Date of purchase or sale / Purchase/Sale price ($) / Asset Purchase/Sale ()Purchase / Sale
$
$
$
12.Statement of Assets and Liabilities.
Assets and Liabilities for the farm business and owners of the business, includes sole proprietors, partners, directors, shareholders and beneficiaries.
Liabilities(Show present debts) / $ / Assets
(Show at present fair market value) / $
Overdraft (Limit $ ) (L$$$$ $ ) / Farm Property
Term Loan 1 / Water Licence
Term Loan 2 / Non-Farm Real Estate (details below)
Term Loan 3
Commercial Bills / Plant & Equipment
Housing / Home Equity / Motor Vehicles
Other / Livestock (details below)
Type: No.
Hire Purchase / Other Leasing / Type: …………………Head…………
Personal Loan / Type: …………………Head…………
Stock Firm Debt (Limit $ ) / Type: …………………Head…………
Store Accounts & Trade Creditors / Type: …………………Head…………
Rental / Leasehold Arrears / Produce in Pools / on Hand
Private Loans / Cash in Bank /Term Deposit
Unpaid /Deferred Taxation / Farm Management Deposits
Credit Cards / Managed Funds
Other Liabilities (please specify) / Shares
Other Liabilities (please specify) / Superannuation Funds
Life Policies - Surrender Value
Private Loans
Value of interest in an Estate
Commodity proceeds (to be received)
Deposit paid on land / machinery
Debtors
Other Assets (specify)
Other Assets (specify)
TOTAL / $ / TOTAL / $
Do you have any contingent liabilities? / Yes (provide details below) No
Have you provided any guarantees to secure third party liabilities? / Yes (provide details below) No
Provide details of any contingent liabilities and third party liabilities?
13.Budgets- Applicants are to either: