Up to $1M is available from Drought Loans to help farm businesses prepare for, manage through and recover from drought.
Drought Loans provide farm businesses with loans to help them prepare for, manage through and recover from drought.
The Australian Government, through the Regional Investment Corporation, is providing $250 million each year until 30 June 2026 for loans for eligible farm businesses. Farm businesses must be in need of financial assistance and have sound prospects of long-term financial viability.
The new farm business loans replace and build on previous Commonwealth-funded concessional loans, including the Farm Finance, Drought, Drought Recovery, Drought Assistance, Dairy Recovery and Business Improvement Concessional Loans. It also complement a range of other support and risk management measures provided by the Australian Government.
Drought Loans aim to support the long-term strength, resilience and profitability of Australian farm businesses.
Loans of up to $1 million over a period of 10 years are available. Repayments will be tailored to the cash flow of the business and are interest only over the first five years, then principal and interest for the remaining five years. After 10 years, any remaining balance on the loan can be refinanced with a commercial lender.
Drought Loans may be used to:
- prepare for, manage through or recover from drought
- refinance existing debt
- pay for operating expenses or capital
- enhance productivity
- fund drought-related activities.
To be eligible, you must:
- be an Australian citizen or permanent resident
- contribute at least 75% of your labour to the farm business (under normal circumstances)
- earn at least 50% of your income from the farm business (under normal circumstances)
- have a drought management plan
- provide security for the loan
- secure the support of your commercial lender for the proposed loan.
Additionally, the farm business you are running must:
- be located in an eligible area of Australia
- have existing commercial debt
- be registered for tax purposes in Australia with an Australian Business Number (ABN) and be registered for GST
- be in financial need of a loan
- have the capacity to repay the loan
- operate as a sole trader, trust, partnership or private company
- be in the agriculture, horticulture, pastoral, apiculture, or aquaculture industry
- be solvent.
Applications close 30 June 2026.