Funds are now flowing to drought-affected farmers, as the first low-interest loans are approved under the Malinauskas Government's $200 million SA Drought Loan Scheme.
The scheme, which provides an unprecedented level of State Government-funded targeted financing to drought-impacted farmers, has approved its first four low-interest loans to farmers in regions hardest-hit by drought.
The scheme offers loans of up to $250,000 to drought-affected farmers in eligible production areas. Loan terms are for 10 years and include a two-year repayment holiday.
Despite recent rains, producers in some areas continue to face cashflow pressures due to drought.
Applications are being approved within five days of all necessary information being provided, ensuring much-needed finances are flowing as quickly as possible to drought-affected farmers and without compromising on the careful due diligence required to ensure responsible allocation of taxpayer funds.
The SA Drought Loan Scheme provides concessional interest rates that are 50 per cent of the Commonwealth 10-year bond rate in the first two years of each loan term. Over the last eight years of the loan term, the rate is based on the 10-year Commonwealth bond rate (currently 4.98%).
Over the life of the loan term, interest rates will be lower than the concessional interest rate of 5.18% currently offered under the Australian Government's Regional Investment Corporation loan scheme, and lower than commercial interest rates.
The SA Drought Loan Scheme is in addition to the Malinauskas Government's $97 million Drought Support Package, which continues to deliver support to drought-affected regions across the state.
Applications for low-interest drought loans are open until 31 December 2026.
The Malinauskas Government continues to closely monitor seasonal conditions and work alongside industry groups and regional communities as drought impacts continue to affect parts of South Australia.
Assistance remains available for all primary producers experiencing hardship through State and Federal Government support programs, including the Rural Financial Counselling Service.
The SA Drought Loan Scheme is managed by the Department of Primary Industries and Regions and administered by the Queensland Rural and Industry Development Authority.
For further information on the scheme and to apply, visit pir.sa.gov.au/drought-loans.
As put by Minister Clare Scriven
The most significant drought loans scheme in South Australian history has reached an important milestone.
Funds are now flowing directly to drought-affected farming businesses in some of our hardest hit regions, providing much-needed financial assistance at a crucial time for the state's agricultural sector.
While some areas have started to see rain in recent months, many producers continue to face challenging seasonal conditions and cashflow pressures.
The SA Drought Loan Scheme provides breathing room in the form of targeted assistance and helps farmers maintain operations as they recover from the impacts of drought.
We will continue to monitor conditions closely and work with industry and regional communities to ensure support is reaching the people who need it most.
