ABOUT $16 million in Federal Government loans are yet to be allocated to Victorian producers.
In July last year, the former Labor Government pledged $30m towards struggling Victorian farmers through a Farm Finance package, which was increased to $40m for the 2013-14 financial year in November by Federal Agriculture Minister Barnaby Joyce.
However the funds, which form concessional loans of up to $650,000 per farm at variable interest rates, are in danger of being re-absorbed into Federal coffers.
Rural Finance general manager operations Peter Nee said as of last week, $24m had been approved to Victorian farms and it was "unlikely" all the money would be allocated by the April 30 deadline.
Mr Nee said before the extra $10m was given to Victoria, Rural Finance had approved $29m in loans but $5.5m of that was rejected by loan recipients who had received a better offer from "competitors".
"In some ways it's a good sign for the industry," said Mr Nee, who suggested 58 Victorian farms had loans approved since July, while more than 60 had been rejected.
Victoria's allocation for the 2014-15 financial year is $30m, which was subject to change, according to Mr Nee.
In November the Federal Government cut Tasmania's share of the 2013-14 funds from $30m to $15m and increased Queensland's to $50m to support drought-affected farmers.
Farmers considering applying for the scheme, which closes for the 2013-14 financial year on April 30, can call Rural Finance on 1800 260 425.
