Changes announced by the federal government came into force this week which double the top amount farmers can borrow from the RIC from $1 million to $2 million.

Interim CEO Matt Ryan said farmers should consider refinancing their debts with banks to the RIC.

“There’s a lot of interest in refinancing existing debt with the RIC, as the savings are significant,” he said.

“The difference between our 3.58 per cent rate and a commercial rate puts an extra $40,000 into a farmer’s pocket each year when borrowing $2 million.

“Our loans can be used for a variety of a farm-related activities including refinancing existing commercial debt or accessing new debt for operating expenses and capital improvements,” he said.

Mr Ryan said they included paying bills, buying feed, desilting dams, planting crops or agisting stock.

He said the RIC would not compete with banks for farming loans.

“The RIC is seeking to work in partnership with the banks for the benefit of the farm business. RIC loans provide farm businesses under financial pressure with some breathing space,” he said.

Mr Ryan said the RIC was limited to holding 50 per cent of a farmer’s debt.

It is still waiting to sign a lease for premises in Orange although Mr Ryan has said it had identified offices in Kite Street.

“We are very close to signing the lease,” he said.

“In the meantime, we’re working closely with local architects to settle on the office fit out including using local businesses for building works where possible.”

READ MORE: Waste of money: Opposition calls for the scrapping of our Barnaby bank | Poll

“There has been strong interest in our loans and applications are starting to come in at a steady rate,” he said.

“Since launching we’ve been out talking to farmers and trusted financial influencers about our farm business loans and there is plenty of interest especially in NSW and Queensland.”