Drought-affected farming businesses in South Australia's Murray Mallee, Riverland and Upper North regions will be able to access urgent financial assistance through the provision of low-interest loans of up to $250,000.
The new scheme announced today by the Malinauskas Government is in addition to existing drought assistance measures totalling $97 million.
The new assistance measure, the SA Drought Loan Scheme, will be funded with a cap of $200 million, and will allow for loans of up to $250,000 with a loan term of 10 years for drought-affected grain and livestock producers.
Recipients would be granted a two-year loan repayment holiday in which no principal or interest payments need to be made - this will give eligible farmers a significant benefit as they recover farm cashflow due to ongoing drought impact.
Loans will have concessional interest rates for the first two years at 50 per cent of the Commonwealth 10-year bond rate (currently 2.41 per cent). During the last eight years of the loan term the rate would be based on the 10-year Commonwealth bond rate (currently 4.83 per cent).
Over the life of a 10-year loan term, this will be lower than the concessional interest rate of 5.18 per cent currently offered under the Australian Government's Regional Investment Corporation loan scheme and commercial interest rates.
The program will open in March and be offered through to 31 December 2026.
As put by Peter Malinauskas
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.
Today we deliver that support – low interest loans that will provide immediate, urgent assistance for farmers who continue to do it tough in the Murray Mallee, Riverland and Upper North, which includes the local council areas of Orroroo Carrieton, Peterborough, Northern Areas and Mt Remarkable.
I've said before that we can't make it rain, but we can take decisive action to support our farmers and ease their financial transition through the enduring impacts of drought.
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.
As put by Tom Koutsantonis
The Malinauskas Government continues to stand shoulder to shoulder with our farming communities.
The low-interest loan program will give impacted farmers a leg-up to navigate the enduring impacts of a drought that has taken its toll on individuals, families and the broader economy.
As put by Clare Scriven
Many areas of our state have received welcome rains and are on the road to recovery from the drought, but there are some where very little has changed. Areas such as the Murray Mallee, Riverland and Upper North have continued to suffer from drought and are facing significant challenges for the coming season.
Providing access to working capital on discounted terms will support farmers while farm cashflow is recovering, including no need to make payments during the first two years.
These loans, which are in addition to our record $97 million Drought Support Package, will help some of our farmers in the hardest-hit regions to recover from drought and continue to work to feed our state, our nation and the world.
