This week’s Drought Forum in Gawler, South Australia has only reiterated the need to restore the former Coalition Government’s initiative to give farmers interest free loans, Member for Mallee Dr Anne Webster said today.

“Farmers at the Drought Forum are crying out for action and outcomes, not just more talkfests and I am hearing similar from farmers across Mallee” Dr Webster said.

“Drought conditions have been a major setback for Mallee and Wimmera farmers and I note Australian Dairy Farmers are reiterating our calls for interest free loans for a minimum of two years. Why is Labor hosting drought forums but then not giving farmers what they are asking for?”

In 2020 the Coalition introduced a two-year interest-free period for loans up to $2 million through the Regional Investment Corporation (RIC) for farmers experiencing drought hardship.

The Coalition established the RIC in 2018 to support farmers and help them grow and diversify. It is important legacy funding, to support farmers through drought hardship.

The zero per cent interest rate applied to new and existing drought loans under the RIC and enabled farm families to refinance existing debt from commercial lenders, to save on cashflow and give them time to restock and replant. The measure helped farmers from going bankrupt.

Meanwhile farmers are waiting for the Albanese Labor Government to respond to a formal review into the RIC.  The review began in November 2023 and a report was published 13 ½ months ago, but the Government has not published its full response.

“While the Minister stated the Government’s response to the RIC review will be released late this year, for many, that may be too late.”

“Farmers complained to me this week that the RIC criteria is time consuming and restrictive, serving as a disincentive to access RIC - so much so that farmers end up getting a quicker and better deal from their bank. 

“I am very concerned that Labor’s mismanagement has meant RIC funding has not all been allocated in the recent reporting year – during drought conditions - and that RIC is not valued by the current Government like it was by the Coalition.”

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