Drought affected farming businesses in South Australia’s Murray Mallee, Riverland and Upper North regions will be able to access urgent financial assistance through low interest loans of up to $250,000.
The new scheme announced by the South Australian government is in addition to existing drought assistance measures totalling $97 million.
“Last year we confirmed drought assistance measures for South Australian farmers totalling $97 million – but we’ve always said we stand ready to offer more support if needed,” said premier of South Australia Peter Malinauskas.
The SA Drought Loan Scheme will be funded with a cap of $200 million and will offer loans of up to $250,000 with a loan term of 10 years for drought affected grain and livestock producers.
“This loan program adds to existing comprehensive support measures including grants for on farm drought infrastructure, financial relief for those who need it, support for regional communities, investment in regional public standpipe upgrades, and funding for pest management,” added Malinauskas.
Eligible recipients will be granted a two year loan repayment holiday, during which no principal or interest payments will be required, supporting farmers as they manage farm cashflow during ongoing drought conditions.
Loans will attract concessional interest rates for the first two years at 50 per cent of the Commonwealth 10 year bond rate, currently 2.41 per cent. For the remaining eight years, the interest rate will be based on the 10 year Commonwealth bond rate, currently 4.83 per cent.
Across the full 10 year loan term, the rate is lower than the concessional interest rate of 5.18 per cent currently offered under the Australian Government’s Regional Investment Corporation loan scheme and below typical commercial rates.
The program will open in March and will run until 31 December 2026.