Bush Summit: Farmers’ plea for crucial loan scheme to be saved
Leading farming groups are fighting to save a national investment corporation that gives farmers’ “financial breathing space” during tough times by offering access to low-interest loans.
Leading farming groups are stepping up their campaign for a national investment corporation to be saved to guarantee farmers’ access to low-interest loans during tough times.
The federal agency’s multibillion-dollar loan capacity is due to expire next year, sparking fears a lack of financial support could send some farmers to the wall.
Industry leaders are urging the federal government to secure the future of the Regional Investment Corporation, which has provided $3.3bn in loans to 3400 farm businesses since it was established in 2018.
National Farmers’ Federation president David Jochinke said the loans were not handouts but genuine support for the sector.
“They’re lifelines that get repaid in better times that provide farmers with financial breathing space,” he said.
The corporation was the subject of an independent review in 2024 which recommended its retention. The Albanese government was provided with the final report over a year ago, but has yet to respond.
“Since then, we’ve heard very little from the government on the RIC’s future,” Mr Jochinke said. “It’s gathering dust while drought-affected regions struggle to grow crops in dust.’’
The report concluded concessional loans were effective in supporting long-term economic farm viability, and that the government should retain the RIC as means for concessional finance.
Victorian Farmers Federation president Brett Hosking and Australian Dairy Farmers president Ben Bennett also urged Agriculture Minister Julie Collins to not only retain the corporation but give it the power to provide interest-free loans.
Mr Hosking said the review provided a “reset moment”.
“This where you get a chance to say, all right, we’re going to reinvent it and let’s reinvent it better and let’s achieve greater good with it,” he said.
“It is there for every farmer right across Australia, to be used in times of disaster or drought as where we’re seeing at the moment or in times of natural disasters whether it be floods and fires.”
“It’s also there to actually build resilience and preparedness for some of those events as well – whether it be low-interest loans to build infrastructure such as hay storage and grain storages which have proved incredibly vital in the current drought we’re seeing in south eastern Australia at the moment.’’
The government is understood to be still considering the review’s recommendations, with Ms Collins vowing to “continue working with farmers and all levels of government to understand the conditions farmers are facing”.
“Having recently spent time with farmers in South Australia and western Victoria impacted by drought, I know that many are doing it tough with these harsh conditions,” she said.
The minister said the government had invested $1bn in rural support and drought resilience programs, while also keep variable interest rates for RIC loans on hold at 5.18 per cent.
“We understand the challenges many farmers are facing,” Ms Collins said.
The RIC’s more than 3000 concessional loans to farm businesses from its inception to March 2024, have spared farmers about $309m in interest payments.
Mr Jochinke said the lack of certainty about the corporation’s future was challenging as producers were working on their budgets for this financial year without any indication about the government’s commitment to concessional lending.
NSW Farmers president Xavier Martin said 94 per cent of RIC’s customers were family businesses.
“These family farms name machinery upgrades, succession planning, building climate resilience and sustainability as their top priorities,” he said.
“The government must stop dragging its feet and commit to the RIC.”
The dairy industry is also struggling with feed costs. Mr Bennett said farmers were losing thousands of dollars every week in fodder costs to help their livestock during winter.
Primary Producers SA Independent chair Professor Simon Maddocks said the state had endured one of the driest periods on record and that the conditions demanded support from the federal government.
“We urge the extension of RIC’s loan capacity beyond 30 June 2026 and in PPSA’s view recommend making concessional loans more accessible by reducing interest rates to a truly ‘concessional’ level, expediting processing, and broadening eligible uses to include restocking, debt relief, and infrastructure repair,” he said.
Escape to the country, stay in a silo
