YOUNG farmers will receive a major leg-up after the Federal Government announced a $75 million investment to assist in first-time farm ownership.

The Future Farmer Guarantee Scheme, which is expected to run for 18 months from January 2023, would account for 40 per cent of a new farmer’s loan of up to $1 million.

Applicants to the scheme would require at least three years of relevant experience to be eligible and loans would have a maximum term of 10 years, with the option to extend by two years in the event of serious financial hardship.

The government would also provide $1.45 million for the Regional Investment Corporation to administer the program.

Wannon MP, Dan Tehan said the pilot scheme would help address the growing costs associated with farm ownership for people entering the agricultural sector.

“We know our farmers are keen to help the next generation get their start and the government is using every lever we have to encourage young people on the land,” he said.

“Lowering the barriers for future farmers is an investment in the future of our regions.”

Agriculture Minister, David Littleproud said it was vital younger farmers be provided with the support to establish their business in the sector.

“Existing landholders are ageing – the average broadacre farmer is 62 years old, with only 10 per cent aged under 47,” he said.

“Rising land values and the typical 40 to 60 per cent equity deposit required by commercial banks without this Government guarantee mean that getting access to a bank loan to start a viable business is very difficult.

“This support will help families access capital to assist with succession planning, as well as help those families and farmers getting into ownership for the first time.”

Mr Littleproud also stressed that the scheme would maintain tight eligibility criteria.

“This is not a free for all – applicants will need to have on-farm experience, a minimum deposit and be a sound lending prospect from the banks perspective,” he said.

Victorian Shadow Agriculture Minister, Peter Walsh, welcomed the scheme and said anything that can assist young farmers to make their first investment into agriculture has to be a good thing.

“Making sure that we get the next generation of farmers investing and being part of the future is imperative,” Mr Walsh said.