New support for SA farmers

Drought-affected farming businesses in South Australia’s Murray Mallee, Riverland and Upper North regions will be able to access urgent financial assistance through the provision of low-interest loans of up to $250,000.

The new scheme announced today by the South Australian Government is in addition to existing drought assistance measures totalling $97 million.

The new assistance measure, the SA Drought Loan Scheme, will be funded with a cap of $200 million, and will allow for loans of up to $250,000 with a loan term of 10 years for drought-affected grain and livestock producers.

Recipients would be granted a 2-year loan repayment holiday in which no principal or interest payments need to be made – this will give eligible farmers a significant benefit as they recover farm cashflow due to ongoing drought impact.

Loans will have concessional interest rates for the first 2 years at 50% of the Commonwealth 10-year bond rate (currently 2.41%). During the last 8 years of the loan term the rate would be based on the 10-year Commonwealth bond rate (currently 4.83%).

Over the life of a 10-year loan term, this will be lower than the concessional interest rate of 5.18% currently offered under the Australian Government’s Regional Investment Corporation loan scheme and commercial interest rates.

The program will open in March and be offered through to 31 December 2026.

For more information, see  SA Drought Loan Scheme.