SA Drought Loan Scheme – frequently asked questions

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 via concessional working capital loans.

The South Australia Drought Loan Scheme offers individual loans of up to $250,000 with a loan term of up to 10 years.

South Australia Drought Loans can only be used for working capital only expenses that will assist in drought recovery. Examples of these costs include:

• paying employee wages
• paying creditors
• paying rent and rates
• buying goods, including fuel, for carrying on the business
• direct cropping and livestock expenses.

South Australia Drought Loans cannot be used for non-working capital expenses such as:

• 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.

The following terms apply to South Australia Drought Loans:

• Borrowers are not required to make repayments 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 will 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 (years 1 and 2) of the loan term and will then be reviewed annually for the remainder of the loan term (years 3 to 10).
• Repayments must be made by direct debit from a borrower’s nominated bank account. Monthly, quarterly, semi-annual and annual instalment options will be available.

Drought affected dryland cropping and livestock farmers in South Australia’s Murray Mallee, Riverland and Upper North regions are eligible to receive funding under this scheme. Eligible councils include Karoonda East Murray, Mid Murray, Southern Mallee, Coorong, Murray Bridge, Renmark Paringa, Berri Barmera, Loxton Waikerie, Orroroo Carrieton, Peterborough, Northern Areas and Mount Remarkable.

The South Australia Drought Loan Scheme will be available to eligible dryland cropping and livestock farmers in the eligible regions who can demonstrate they have been financially impacted by drought. This includes mixed-farming enterprises with both grain and livestock production.

For information on eligibility criteria, please refer to the South Australia Drought Loan Scheme guidelines ( PDF 225.2 KB ).

A Farm Business Resilience Plan ( PDF 700.5 KB ) must be submitted to the Department of Primary Industries and Regions South Australia (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.

Applications for the South Australia Drought Loan Scheme will close on 31 December 2026, or when scheme funding has been exhausted.

To get ready for the opening of the South Australia Drought Loan Scheme, you can begin to prepare the necessary documentation required to apply for the loan. This includes:

• past 3-year business and personal tax returns and financial statements
• cashflow budgets
• statement of financial position (assets and liabilities).

The Rural Financial Counsellor Service is also available to support applicants. You may engage with a Rural Financial Counsellor at Rural Business Support to prepare the documents you need for your application.

As part of your application, you will be asked to demonstrate how drought has impacted your primary production business, and how the loan will assist in drought recovery.

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 flow.

If you are eligible to apply for the South Australia Drought Loan Scheme, you are encouraged to engage with a Rural Financial Counsellor at Rural Business Support who can assist you to prepare the documents you need for your application.

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.

To ensure you have the best chance of successfully applying for a South Australia Drought Loan, the Queensland Rural and Industry Development Authority (QRIDA) as the Scheme administrator, 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.

Yes. The cashflow budget template provided by the Scheme administrator, the Queensland Rural and Industry Development Authority (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.

See South Australia Drought Loan Scheme:

1. Read the South Australia Drought Loan Scheme guidelines.
2. You may wish to discuss your proposal with the Scheme administrator, the Queensland Rural and Industry Development Authority (QRIDA), or seek assistance from your business adviser.
3. Complete a South Australia Drought Loan Scheme application form and statement of position. Be sure to include supporting evidence in this application, including complete production schedules and cashflow forecast, all of  which are located on the QRIDA application portal website.
4. Instructions for completion of these forms are included in each form. Please contact QRIDA on 1800 623 946 if assistance is required.
5. Submit the application and supporting documents to QRIDA via the QRIDA online application portal, post, email or fax.

Yes. South Australia Drought Loan Scheme Loans need to be adequately secured by a mortgage over farming land and any associated water licence or water-access entitlement.

Yes. South Australia Drought Loan Scheme Loans will be subject to an annual review. Loan recipients will be required to provide the necessary financial information each year when requested by the Scheme administrator, the Queensland Rural and Industry Development Authority (QRIDA).

The South Australia Drought Loan Scheme will be managed by the Department of Primary Industries and Regions South Australia (PIRSA). PIRSA is working with the Queensland Rural and Industry Development Authority (QRIDA) to administer the loans on behalf of the South Australian Government.

Complete applications will be allocated to an experienced assessor from the Queensland Rural and Industry Development Authority (QRIDA) who will contact applicants to discuss their application and ensure their proposal is fully understood. The assessor will also liaise with the applicant’s business advisers or financiers as necessary.

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.

No. The South Australia Drought Loan Scheme is only available to eligible grains, livestock and mixed-farming enterprises with both grain and livestock production.

If the application is approved, funds will be paid within 3 business days following receipt of fully executed documents.

Yes. You can apply for a South Australia Drought Loan alongside an existing or new RIC loan providing the costs funded under the South Australia Drought Loan are not also being funded under a RIC loan.

Yes. You are entitled to a decision review on your application. For more information on this process, please see Reviewing a decision page on QRIDA’s website.

For the purposes of the South Australia Drought Loan Scheme, a 'primary production business' means a business that:

• operates as a dryland cropping or livestock enterprise in the eligible regions
• is carried on by a sole trader, trust, partnership, or private company within South Australia
• involves primary production, including the agricultural, apicultural, aqua cultural, commercial wild-catch fishing, forestry, grazing, and horticultural industries
• holds an Australian Business Number (ABN).