The federal government has announced $1 billion in additional farm support loans, including new assistance for ecological events.
The extra funding provided to the Regional Investment Corporation (RIC) will be available as concessional loans for farmers facing hardship during extended dry conditions.
It also includes new loans for communities affected by significant ecological events, in response to the algal bloom in South Australia.
Prime Minister Anthony Albanese said the government was helping farmers who were doing it tough.
“I have seen firsthand the toll that extreme weather events like drought take on regional communities,” he said.
“This is about helping farmers to manage cost pressures and free up cash flow so they can continue producing the products we all rely on.”
The RIC provides low-interest, long-term loans for farm businesses experiencing severe financial disruption.
About 3,400 low-interest loans worth around $3.6 billion have been approved over the past seven years.
Funding for the scheme was due to end on June 30, 2026.
But Agriculture, Fisheries and Forestry Minister Julie Collins said the government was committed to the program.
“These loans will be available on an ongoing basis past June 30 next year,” she said.
“We are seeing an increase of applications from SA and Victoria, particularly as those areas continue to recover from drought and be impacted by drought.”
Ms Collins said the government would consult with farmers about further changes to the scheme.
“We want to make them more resilient to climate impacts of the future,” she said.
The Victorian Farmers Federation (VFF) has welcomed the funding, but said farmers needed more meaningful support in the face of drought.
VFF president Brett Hosking said the low-interest loans fell well short of addressing the dire situation farmers were facing.
“This is not a new initiative. It’s simply a decision not to shut down an existing source of drought support … one that doesn’t actually cost the government anything in the short term,” he said.
Mr Hosking said the critical spring growing season was approaching and interest-free periods on loans, or HECS-style repayments, would be more helpful.
“Approval time frames for (RIC) loans are up to 118 days,” he said.
“The government can and must do better to get the support to where it’s needed as fast as possible,” Mr Hosking said.
The RIC loan program was established in July 2018 when Nationals leader David Littleproud was the Morrison government’s agriculture minister.
Mr Littleproud said he “feared that the government was moving towards abolishing the RIC, so this at least means it’s going to continue”.
The Nationals leader backed the push for the loans to include no-interest periods, “a period of interest-free rates to give that opportunity for cash flow to be restored and cash flow to be spent”.
“There is scope for the government to look differently at this, to expand it for all natural disasters, not just drought,” he said.
