WA farmers say they may turn to Queensland to administer emergency federal funding if their own State Government ties up the scheme in red tape.
On the weekend, the Gillard Government revealed its Farm Finance package, which offers farmers concessional loans of up to $650,000 over two years, then at market interest rates for the 20-year life of the loan.
That trumped the WA Government's offer to the State's struggling farmers of $7.8 million, which included grants of up to $25,000 for up to 400 farmers who faced losing their businesses.
Premier Colin Barnett said yesterday he would "do his best" to administer the loans, which would be handled by the Rural Business Development Corporation.
The WA Farmers Federation said it understood the State Government would the meet application and processing costs.
But after WA Agriculture Minister Ken Baston said he wanted to clarify the costs associated with the scheme, WAFarmers said it was extremely concerned the money could be tied up in bureaucracy.
"The only word from the State Government appears to be it is concerned about taking on the liability for bad loans and the costs of administration," WAFarmers president Dale Park said.
"The only involvement the State Government has is administering the loans and the cost of the administration process."
Mr Park said WAFarmers was investigating options for administering the funding package outside of WA.
"The Queensland Rural Adjustment Authority does have the ability to administer programs outside of Queensland and we are investigating the possibility they could administer the scheme in WA so our farmers can access the funds," Mr Park said.