The Australian government has announced further support for farmers and producers experiencing hardship through new concessional loan products delivered by the Regional Investment Corporation.
The government has released its response to the Review of the Operation of the Regional Investment Corporation Act 2018, which examined how concessional loans are supporting farmers and producers.
The response is supported by a $1 billion commitment for additional Regional Investment Corporation loan funding, allowing continued access to concessional lending.
As part of the response, the government will introduce a new Drought Hardship Loan to assist with short term operating costs for farmers experiencing prolonged drought conditions.
“The Albanese labor government will never leave farmers behind that are facing hardship and our response to this important review demonstrates this commitment,” minister for agriculture, fisheries and forestry Julie Collins.
“In meeting with farmers impacted by drought across the country this year I have heard again and again the challenges our farmers are facing with prolonged drought conditions.
“I have been listening and that’s why our Government will deliver the new Drought Hardship Loan.”
The Drought Hardship Loan will be available to farmers who have been affected by drought for at least 24 months and who expect to continue to be impacted for a further season. Eligible applicants will be able to borrow up to $250,000.
The loan will have a five year term, with interest incurred and repayments fully deferred for the first two years.
The government has also progressed a new stream of Regional Investment Corporation loans to support slow onset ecological events, including a concessional loan product for marine harmful algal blooms and marine heatwaves.
This loan will be available to South Australian wild catch fishers and aquaculture operators affected by the recent algal bloom.
Both new loan products are expected to be available in the first half of next year and will be supported through the additional $1 billion in loan funding.
Interest rates on existing Regional Investment Corporation loans will be held at 5.18 per cent for a further six months from 1 February 2026.
The review, led by Dr Wendy Craik, made 32 recommendations and six findings and concluded that concessional loans were an effective way to support farmers, assist recovery from hardship and build resilience.
“This new concessional loan will sit alongside our wider hardship support for farmers,” said Collins.
“We are delivering on our commitment for a new RIC loan to South Australian wild catch fishing and aquaculture businesses which will provide practical support to those businesses affected by the algal bloom.
“We’re also keeping RIC interest rates on hold for another six months – supporting farmers and producers that are still facing challenging conditions.”