Drought is becoming more challenging and long-lasting in many parts of Australia. To help farmers manage prolonged dry conditions, the Australian Government has introduced the RIC Drought Hardship Loan.

The loan is designed for farm businesses that have managed through at least 24 months of drought and expect further impacts over the next 12 months. It provides financial relief to help farmers stay operational, manage cash flow and make critical on-farm decisions.

Eligible farm businesses can borrow up to $250,000 over a five-year term, at the RIC’s concessional interest rate (currently 5.18 per cent), with a two-year repayment holiday, providing breathing space during ongoing drought conditions.

The loan can be used for essential operating costs such as paying bills, buying fodder, and transporting livestock or produce. It can also support forward planning and seasonal decision-making , including preparing for activities such as winter cropping where recent rainfall may have improved conditions. RIC loans are optional and sit alongside other Australian Government, state and territory drought support measures. Having a RIC loan does not prevent farmers from accessing other drought assistance, provided eligibility requirements are met.

ric.gov.au – Find out more about the RIC Drought Hardship Loan, including eligibility and how to apply.
drought.gov.au – Learn about Australian Government drought support.