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On Farm Assistance

Drought Loan

The Regional Investment Corporation (RIC) offers low interest government-funded loans to farmers in need.

Their Drought Loan can be used for any farm business related activity including:

  • refinancing existing debt to free up cashflow
  • operating costs like outstanding bills, employee labour
  • drought preparedness, management and recovery activities
  • productivity enhancements and infrastructure to future-proof farm businesses

Why you should apply:

  • no ongoing fees or charges
  • repayments can be tailored to the cashflow of the farm business
  • refinance or borrow up to $2 million
  • variable interest rate of 3.58% (reviewed six monthly)
  • their loan assessment team understands agribusiness
  • loan term is 10 years
  • the first five years are interest only. Pay some principal in remaining five years and refinance remaining debt with a commercial lender at the end of the loan.

Please don’t self-assess. Call the RIC to discuss your circumstances. 
Their loan assessment team understands Australian agribusiness.

Are you eligible?

To be eligible, you must:

  • Your farm business needs to be in an eligible area (check here), which covers over 95% of Australia.
  • Drought is an eligible event, but so is any event outside a farmer’s control like frost, fire, cyclone, hail, pest and disease outbreaks or market closures. You need to show the event(s) have caused (or are likely to cause) significant financial impact over a two year period.
  • The RIC accepts a broad range of evidence about the event (including government or industry notifications, reports from the Bureau of Meteorology or photographic evidence) to support your application. Your application will also require evidence of the financial impact that the event has had on your business (Your financial statements including cash-flow, tax returns and forecast budget can be used to support this.)
  • There’s no limit on the number of times you can apply. The maximum loan amount at any one time is $2 million.