South Australia Drought Loan Scheme
The South Australia Drought Loan Scheme supports drought affected grain and livestock farmers in South Australia’s Murray Mallee, Riverland and Upper North regions through access to urgent financial assistance through the provision of low-interest loans.
The scheme is being managed by the Department of Primary Industries and Regions (PIRSA) who are working with Queensland Rural and Industry Development Authority (QRIDA) to administer the loans on behalf of the South Australian Government.
Key dates
Applications close on 31 December 2026 or when all funding has been allocated.
Amounts
Loans of up to $250,000 are available with a loan term of up to 10 years. Total funding for the scheme is $200 million.
Terms of the loan
- Repayments do not need to be made for the first 2 years of the loan term, with interest throughout that time accrued and added onto the principal loan balance.
- Concessional interest rates apply for the first 2 years at 50% of the Commonwealth 10-year bond rate. During the last 8 years of the loan term the interest rate will be based on the 10-year Commonwealth bond rate.
- Interest rates are fixed for the first 2 years of the loan term and will then be reviewed annually.
- Repayments must be made by direct debit from your nominated bank account.
Loan security
Loans must be adequately secured by a mortgage over farming land and any associated water licences or water access entitlements.
QRIDA will discuss security arrangements with you when assessing your application.
Eligibility
To be eligible for the South Australia Drought Loan Scheme, your primary production business must:
- operate as a dryland cropping or livestock enterprise (including mixed-farming enterprises) in the Murray Mallee, Riverland or Upper North regions:
- Karoonda East Murray
- Mid Murray
- Southern Mallee
- Coorong
- Murray Bridge
- Renmark Paringa
- Berri Barmera
- Loxton Waikerie
- Orroroo Carrieton
- Peterborough
- Northern Areas
- Mount Remarkable
- operate as a sole trader, partnership, trust or private company within South Australia
- be registered for tax purposes in Australia with an ABN and be registered for GST
- not be under external administration or bankruptcy
- have at least one member that has owned and operated the primary production business for at least the past three consecutive years and who, under normal circumstances, contributes the majority of their labour and derives the majority of their income from the primary production business
- be intending to continue carrying on the primary production business within the eligible regions
- demonstrate your business is financially impacted by drought, is in need of financial assistance, has the capacity to repay the loan and reasonable prospects of commercial viability and recovery with the assistance provided
- provide an approved Farm Business Resilience Plan ( ) within the first 2 years of the loan
- not have already received a loan under the scheme.
While many areas of the state have received welcome rain, the Murray Mallee, Riverland and Upper North regions are still significantly drought affected. This is why these regions have been specifically targeted under this scheme.
You can apply for this scheme alongside an existing or new Regional Investment Corporation (RIC) loan if the costs being funded under each loan are different.
How loan funds may be used
A loan under the Scheme may be used to meet the working capital expenses of the primary production business, for example:
- paying employee wages
- paying creditors
- paying rent and rates
- buying goods, including fuel, for carrying on the business
- direct cropping and livestock expenses.
What will not be funded
Loans under the scheme cannot be used for non-working capital expenses, for example:
- refinancing existing farm business debt
- private or domestic asset purchases or expenses
- non-business investments or expenses
- tax payments or statutory obligations
- paying dividends, distributions, or similar, to shareholders or owners
- any expenses already funded by government grants or loans (state or Commonwealth)
- purchasing new equipment or other assets.
Do I need a Farm Business Resilience Plan?
A Farm Business Resilience Plan must be submitted to PIRSA within 2 years of being approved for a loan under the Scheme. A Farm Business Resilience Plan helps to:
- recognise risks associated with production, including climate and weather (such as drought)
- identify business risks, including financial and market factors, and how to respond to those risks, and
- understand personal risks such as workplace health and safety.
For assistance in completing a Farm Business Resilience Plan, please contact the PIRSA Recovery Hotline 1800 931 314 or email PIRSA.Recovery@sa.gov.au.
How to apply
To apply for a loan under the scheme:
- Read the SA Drought Loan Scheme guidelines ( ).
- View the documents checklist. ( ).
- Go to the QRIDA application portal and complete:
- South Australia Drought Loan Scheme application form
- statement of asset and liabilities
- production schedules
- cashflow forecast.
- Submit the application and supporting documents to QRIDA via the QRIDA online application portal, post, email or fax.
Instructions for completion are included in each form. Please contact QRIDA if assistance is required.
If you would like to request a paper application form and other relevant documents, please contact QRIDA at contact_us@qrida.qld.gov.au.
Applicants are encouraged to work with a Rural Financial Counsellor at Rural Business Support to prepare application documentation.
Do you need assistance to apply?
If you require assistance, you can work with a Rural Financial Counsellor at Rural Business Support.
Family and Business (FaB) Mentors are also available for additional support.&
If you have a disability QRIDA have a range of services in place that can also assist with the application process. If you need assistance in completing your application, you can speak to someone at QRIDA about the application process by emailing contact_us@qrida.qld.gov.au or calling 1800 623 946.
Application and assessment process
To ensure you have the best chance of being successful for a loan under the scheme, QRIDA needs to understand the historical performance of your business, your current position and your plan moving forward. Without this information, QRIDA will be unable to determine the level of assistance you need and your prospects of returning to a viable business with the assistance provided.
To understand the impact of drought on your business, and how the loan may assist your recovery activities, your past financial information (such as business and personal income tax returns and financial statements) may also be analysed in conjunction with current and projected business cash flows.
The cashflow budget template provided by QRIDA is not mandatory. If you have your own cashflow budget template, you can provide this as part of your loan application. However, please note that an itemised monthly cashflow is required for all applications, preferably in a financial year (July to June) format.
What happens next
- Upon receiving applications, QRIDA will acknowledge receipt by email or mail and advise applicants if any further information is required to begin assessment of the application.
- Complete applications will be allocated to a QRIDA assessor who will contact applicants to discuss their application and ensure the proposal is fully understood. The assessor will also liaise with the applicant’s business advisers or financiers as necessary.
- QRIDA will assess applications in date order of receipt, with incomplete applications not entering the assessment queue until all required information is received. Loans will be assessed within 30 days.
- QRIDA will decide South Australia Drought Loan Scheme applications and make a loan offer in writing to approved applicants.
- If offered a loan, approved applicants will be required to enter into a loan agreement with QRIDA which will be prepared in conjunction with loan security documentation. This agreement will include details of loan terms and conditions, repayment details and interest rates.
QRIDA approval process
QRIDA is committed to ensuring due administrative processes are undertaken with the decisioning of applications for government assistance.
When making decisions on applications, as well as the internal review of a decision, QRIDA follows the QRIDA Decision-Making Policy and Procedure.
If you are unhappy with the decision made on your application, you are entitled to a decision review.
For more information, see Reviewing a decision on QRIDA’s website.
Frequently asked questions
See SA Drought Loan Scheme frequently asked questions.
Contact
Phone: 1800 623 946
Email: contact_us@qrida.qld.gov.au