Shadow minister for Agriculture and Maranoa MP David Littleproud has renewed calls for interest-free loans for farmers.
Last week rural representatives met in South Australia at the 2025 National Drought Forum on 8 September.
In her opening address, Agriculture Minister Julie Collins reflected on the reality of droughts for Aussie farmers.
“For many, drought and drought policy is not a theoretical concept, or just a topic for discussion in workshops,” she said.
“It is a lived reality they face each day. A lived reality that shapes every decision made on the farm.”
This strain that droughts place on farmers financially has a flow-on effect, Ms Collins reflected.
“And this is a lived reality that flows from the farm into regional and rural communities that are impacted by drought conditions,” she said.
“From the local shops to the local footy club, drought touches every part of the community. It impacts the wellbeing of individuals, families and communities.”
Ms Collins shared that the National Drought Forum was part of the federal government’s commitment to ensuring they are best preparing for the future and supporting those in the midst of drought.
The Agriculture Minister stated that during late August the government committed an additional $1 billion in new loan funding to the Regional Investment Corporation, so that concessional loans can be delivered to the agricultural sector beyond 30 June 2026.
“This brings the Government’s contribution to the agriculture sector via RIC loans to over $5 billion,” Ms Collins said.
“Our Government will support the broadening of RIC’s loan scope to include assistance for improving climate resilience.”
A further $2 million to boost the Rural Financial Counselling service nationally has also been committed.
The main takeaway from the forum for shadow minister for Agriculture David Littleproud, was the need to provide farmers with interest-free loans.
“Farmers at the Drought Forum are crying out for action and outcomes, not just more talkfests,” Mr Littleproud said.
“The drought is impacting farmers, especially the dairy industry. Australian Dairy Farmers is reiterating our calls for interest free loans for a minimum of two years. Why is Labor hosting drought forums but then not answering their request?”
In 2020, the Coalition Government had reportedly introduced a two-year interest-free period for loans of up to $2 million through the Regional Investment Corporation (RIC) for farmers who are experiencing drought hardship.
Mr Littleproud stated that this zero per cent interest rate applied to new and existing drought loans under the RIC and enabled farm families to refinance existing debt from commercial lenders, to save on cashflow and give them time to restock and replant.
