Eligible drought-affected farming businesses in South Australia will be able to access financial assistance through low-interest loans of up to $250,000
A new financial assistance measure, the SA Drought Loan Scheme, has been announced for South Australia’s drought-affected grain and livestock producers, allowing loans of up to $250,000 with a loan term of 10 years.
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 in the state’s Murray Mallee, Riverland and Upper North regions assistance 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.
“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,” South Australian primary industries and regional development minister Clare Scriven says.
“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.”
The program will open in March and be offered through to December 31, 2026.
