The Albanese Labor Government will deliver more support for farmers and producers facing hardship with new concessional loan products delivered through the Regional Investment Corporation (RIC).
The Government is today releasing its response to the Review of the Operation of the Regional Investment Corporation Act 2018 (RIC Act) to ensure concessional loans remain effective in supporting Australia's farmers and producers.
This response is backed by the Government's $1 billion commitment for additional RIC loan funding, ensuring farmers and producers can continue to access this concessional lending.
As part of the response the Government will introduce a new Drought Hardship Loan designed to help with short-term operating costs as farmers face longer-term droughts.
The Drought Hardship Loan will enable farmers who have been affected by drought for at least 24 months and expect to be impacted for another season, to borrow up to $250,000.
The loan duration will be five years, with interest incurred but repayments fully deferred for the first two years.
The Government has also progressed the new stream of RIC loans to assist with slow-onset significant ecological events, a new concessional loan for marine harmful algal blooms and marine heatwaves.
This loan will assist South Australian wild-catch fishers and aquaculture operators affected by the recent algal bloom.
The two new loan products will be available in the first half of next year.
The $1 billion in additional RIC loan funding will support delivery of these two new products.
In addition to these new loan products and to extend relief to existing RIC loan customers, interest rates on existing RIC loans will be held at 5.18% for another six months from 1 February 2026.
Dr Wendy Craik's Review of the operation of the RIC Act made 32 recommendations and 6 findings, finding concessional loans were an effective means of providing support to farmers, allowing them to recover from hardship and build resilience.
Farmers and producers interested in receiving updates on the new loans can register their interest on RIC's website at ric.gov.au.
The Government's response to the Review of the operation of the RIC Act is available here: https://www.agriculture.gov.au/agriculture-land/farm-food-drought/drought/ric
Quotes attributable to Minister for Agriculture, Fisheries and Forestry, Julie Collins MP:
"The Albanese Labor Government will never leave farmers behind that are facing hardship and our response to this important review demonstrates this commitment.
"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.
"This new concessional loan will sit alongside our wider hardship support for farmers.
"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."
