Australian Government RIC (Regional Investment Corporation) concessional loans are helping to keep viable famers farming despite being faced with tough times, and the flow-on benefit is supporting regional communities to thrive, according to new independent research in the annual RIC Farm Loans Customer Insights Brief 2026.
RIC Chief Executive Officer, John Howard said RIC customer confidence in the future of their farm businesses was the highest level recorded at 91 per cent since RIC first commissioned research in 2020 (up from 74 per cent).
"Our latest research reveals RIC loan customers have greater financial security from increased cash flow, enabling them to recover from unforeseen financial impacts, pay operating expenses and purchase capital machinery or infrastructure to prepare for the future. Two-thirds of RIC loan customers reported they are implementing sustainable agriculture practices on their farm," Mr Howard said.
"While the report identified common challenges facing farmers, including rising input costs, high interest rates and seasonal uncertainty, the overall outlook among RIC-assisted farmers remains positive. Many customers reported greater confidence in the future of their farm business and recognised the value of RIC loans in improving their financial position and ability to plan ahead.
"RIC's lower interest rates and interest-only repayment terms for the first five years of the loan means farmers can make day-to-day operational decisions with certainty and longer-term business plans with greater confidence," he said. RIC estimates its loans have saved Australian farmers and farm-related small businesses around $432 million in interest payments from start-up on 1 July 2018 to 30 June 2026.
RIC loans provide access to support for farmers as they recover from drought and other impacts outside their control, or who are looking to start or buy their first farm business.
"Australian farmers are essential to national food security, and they make significant economic contributions to the regional economies where they live. They have reported the savings from their RIC loan enabled them to provide jobs, contribute to regional spending, development and growth."
"It was particularly pleasing to see the overall RIC customer satisfaction rating now at an all-time high of 97 per cent, up from 89 per cent in 2025. This has been driven by RIC's people interactions, our team's continuous improvement focus on customer experience reflected in timely and efficient application handling, clear and responsive communication and dealing with a consistent point of contact," Mr Howard said.
Reducing farm business debt and better drought preparation are the top ways Australian farmers are using their RIC loan this year, according to the research.
"In 2026, we're seeing an increase in customers indicating they are considering buying machinery or infrastructure this year, or have already, which improve their on-farm sustainability and help them prepare for future disruptions.
"This might include installing irrigation to increase crop yields and reduce feed costs by growing feed on-farm, maintaining or improving soil to sustain high yields in future seasons, or upgrading fencing to maximise land productivity, he said.
Top five RIC loan uses in 2026:
- Pay down debt
- Improve drought preparedness
- Implement drought management plan
- Implement sustainable agricultural practices on farm
- Negotiate better interest rates with their bank or commercial lender
RIC Farm Business Loan Customers Insights Brief 2026 highlights:
- 95% agree RIC loans have improved finance and lending services available to farmers
- 92% agree RIC contributes to the resilience of Australia's regional communities
- 91% agree they have greater confidence in the future of their farm or small business
- 75% agree their loan has made drought, natural disaster or external disruption recovery easier
Visit the RIC website to read the RIC Farm Loans Customer Insights Brief 2026 - ric.gov.au/about/reporting/ customer-insights-report
