First Farm Grant
The First Farm Grant Program provides business planning and development support to help young people committed to farming.
Funding for the current round of the FFG is exhausted.
How does the grant program work?
The program provides grants of up to $3,000 for business planning and additional grants for development projects to enhance the productivity and sustainability of young farmers, with the combined total not exceeding $10,000.
Young farmers who already have a business plan that meets the standards required for this scheme may be eligible for a Development Grant of up to $10,000.
Business Planning Grant
Grant requests for up to $3,000 will be considered to fund a consultant to prepare, or review and update, an applicant's business plan.
The plan must be completed within three months of the date of preliminary eligibility approval being given by Rural Finance and must:
- Be undertaken by a consultant who is a full member of the Australian Association of Agricultural Consultants (AAAC) or a consultant approved by Rural Finance;
- Be assessed by Rural Finance as complying with the business plan standard required for this scheme. In this regard the points to be addressed are listed in Schedule A but in broad terms the plan must:
- provide a strategic assessment of the financial, production, marketing, human and natural resource aspects and likely future direction of the business;
- identify medium to long term business goals;
- isolate risks to the business and suggest mitigation options;
- identify opportunities for enhancing the productivity, sustainability and management potential of the business; and
- provide referral and “next step” options where appropriate.
Development Grant
Grants of up to $10,000, minus the cost of the Business Planning Grant, will be considered to implement development activities that are identified in an applicant's business plan.
If the applicant has a Business Plan that has met the criteria of the Business Planning Grant, and represents a viable business, the applicant may be eligible for a grant up to $10,000. (See also the Additional Eligibility Criteria)
Examples of projects that may or may not be supported are listed in Schedule B.
Projects must be completed within 6 months of the date of preliminary eligibility approval of the Development Grant by Rural Finance.
Eligibility criteria
Applicants must:
- Be under 35 years of age at 1 July 2011;
- Have purchased or inherited their first farm between 1 July 2008 and 30 June 2012
OR
Have entered farming as a share farmer or lessee for the first time between 1 July 2008 and 30 June 2012; - Be operating a farming business, deriving at least $40,000 gross income per annum from the business or demonstrate an ability to achieve this in the first full year of production;
- Be working in the farm business for at least 2 days per week;
- Demonstrate that a minimum farm related capital investment of $50,000 has been made into this business;
- Have an ABN and be registered for GST.
Evidence such as birth certificates, share farming agreements, lease agreements, land purchase contracts will be required, where appropriate to demonstrate compliance with these criteria.
*Share farmers are defined as those who own farming assets in their own right and can demonstrate that they are trying to improve or develop the value of these assets.
Additional Eligibility Criteria
- Where a Business Plan has been developed and funded through the Exceptional Circumstance Professional Advice and Planning Grant, the Climate Change Adjustment Program Advice and Training Grant or other government funded programs, then the applicant will only be eligible for up to $7,000 under the Development Grant.
- The Business Development cannot be used to fund training already subsidised through the Farm Ready Grant.
- An applicant who operates more than one farm business may only apply for grants for a single.
- Development grants are not available where activities have been started or completed prior to the commencement of this program.
How to apply and what happens next
- Application form 1 and advice on approved consultants can be downloaded from the Rural Finance website (www.ruralfinance.com.au) or by telephoning Rural Finance on 5448 2600.
- Completed application form Part 1 is submitted to Rural Finance.
- Rural Finance provides preliminary eligibility approval.
- Business Plan or Review is completed by approved consultant.
- Applicant completes application form Part 2 and sends form with the business plan and a GST exclusive tax invoice to Rural Finance.
- Rural Finance will ensure the submitted business plan meets program objectives and arrange payment for the business plan, as per details provided in application form Part 2.
- Rural Finance will also provide preliminary approval for the proposed development work.
- When the development is completed, tax invoice(s) suitably endorsed by the applicant, along with confirmation that the work has been completed to his/her satisfaction and giving authority to pay is sent to Rural Finance. Bank details must also be sent if they differ to what was submitted in application form Part 2.
- Rural Finance arranges payment.
All project costs included in an application must be exclusive of GST.
If the applicant has an existing Business Plan and seeks to only apply for the Development Grant, application form Part 1 and 2 must still be completed and sent to Rural Finance.
Who can do the Business Plan or Review?
Consultants must:
- Must have suitable levels of professional indemnity insurance; and
- Must be a member of the Australian Association of Agricultural Consultants or approved by Rural Finance.
When does the First Farm Grant program close?
Grants will be available from 1 July 2011 until 30 June 2012, or when the program funds are fully allocated, whichever occurs first.
Review and Amendments
The Department in its absolute discretion may review and amend the First Farm Grant Program at any time.
Contact Rural Finance for more information
Rural Finance has been appointed to administer the First Farm Grant program and to distribute the grants on behalf of the Department of
Primary Industries (DPI).
For more information Contact Rural Finance:
Phone: (03) 5448 2600
Fax: (03) 5441 8901
Email: admin@ruralfinance.com.au
Website: www.ruralfinance.com.au
Privacy
The personal information on the application form will be collected and stored under the provision of the Information Privacy Act 2000. The information you provide to Rural Finance will be used by Rural Finance to process your application and used by DPI for program evaluation and analysis which may include de-identified reports and surveys. The information will not be used for any other purpose without your consent unless authorised by law. If you wish to access information held about you or have any other enquires about this program please contact Rural Finance on (03) 5448 2600.
SCHEDULE A
Purpose
Business Plans that are developed as a result of the Business Plan grant must represent a comprehensive analysis of the existing and future business. In broad terms the plan must:
- provide a strategic assessment of the financial, production, marketing, human and natural resource aspects and likely future direction of the business;
- identify medium to long term business goals;
- isolate risks to the business and suggest mitigation options;
- identify opportunities for enhancing the productivity, sustainability and management potential of the business; and
- provide referral and "next step" options where appropriate.
Business Plan content
1. Background Information
1.1 Farm location, ownership, size and how long it has been operated
1.2 Scale and type of farming operation
1.3 Details of applicant's previous farming experience
1.4 Details of any major improvements/developments in recent times
2. Farm Assessment
2.1 Family contribution detailing who does what in terms of labour and with regards to decision making
2.2 Land area and water resources
2.3 Farm infrastructure adequacy
2.4 Labour resources
2.5 Natural resource management issues
2.6 Livestock/crop
2.7 Plant condition
3. Financial Performance
3.1 Business structure description
3.2 Financial analysis of last year, together with a balance sheet and budget projections
3.3 Observations and identification of trends
4. Current Seasonal Outlook and Prospects
5. Opportunities including options for next steps
6. Risk analysis
6.1 Risks facing the existing business
6.2 Risks associated with achieving the long term goals
6.3 How these risks will be managed
7. Future Strategy
7.1 What options are possible to achieve the long term goals
7.2 Which option is recommended
7.3 What development activities are required to achieve the long term goals*
8. Conclusions and recommendations
* The applicant may consider submitting an application for the Development Grant to support an identified development activity. Or similar.
SCHEDULE B
Eligible Business Development Activities
Activities, as identified in the Business Plan, that may be considered for the Development Grant include, but are not limited to, the following:
- Construction of stock containment areas for improved livestock and land management
- Equipment to conserve fodder, eg silos
- Fencing for improved stock management, including electric fencing
- Fencing to exclude stock from remnant vegetation and watercourses, including electric fencing
- Re-fencing to improve property layout according to land capability
- Improved water infrastructure for stock and pasture management
- Feeding system upgrades, eg feed pads, fixed feed bins
- Infrastructure improvements, eg stock handling equipment
- Eligible livestock identification eg installation of scanning equipment
- Adoption of reduced tillage practices, including purchase and/or modification of equipment
- Adoption of value add techniques to access different markets
- Installation of more water efficient irrigation systems
- Purchase and upgrades to processing and packing systems
- Improved waste water and effluent management
- Training related to farming or business /financial management – that is not already funded through the Farm Ready Grant
- Earth works and laser grading
- Purchase of agricultural plant and machinery such as tractors and harvesters
Business Development activities not eligible for the grant
- Activities directly related to freight, water and transport
- Works that have been paid for from other sources for the same or similar project
- Activities that are required by law or which replace an individual’s, group’s or government’s legal responsibility for sustainable management of resources under their control, unless able to demonstrate specific value to the project
- Purchase, lease or acquisition of land
- Purchase, leasing or maintenance and repair of transportation vehicles such as cars, quad bikes, motorbikes, trailers and trucks.
- Drainage works, unless identified as part of an integrated local catchment plan or with technical input
- Administration, legal or insurance costs
- Day to day operating costs of the business (eg, rent, power, cleaning, telephones etc)
- Standard variable inputs (eg, seed, fertiliser, chemical, fodder)
- Standard boundary and house fencing that would fall within a landholder’s normal responsibility
- Preparation of tax returns
- Pre-existing annual fees and services
- Soil testing
- Purchase of livestock and/or rootstock.
