Future of key plank in nation’s drought aid unclear
Farmers are concerned drought funds may compete with other businesses hit by ecological disasters as the Regional Investment Corporation’s role is set to change.
Farmers are concerned dedicated drought cash will be diverted to assist the South Australian algal bloom recovery, claiming the federal government is conflating two separate needs.
Prime Minister Anthony Albanese this week announced the federal government would create a “a new stream, a significant ecological event program” to support communities hit by the event, drawing funds from the Regional Investment Corporation.
RIC now provides low-interest loans to farm and farm-related businesses, funded by the Commonwealth. It has approved $21m in loans for the financial year to date.
Primary Producers SA deputy chairman Robert Brokenshire and Victorian Farmers Federation president Brett Hosking said greater clarity was needed on how the federal move will impact RIC during a once-in-a-century drought.
Mr Brokenshire said there was little detail about how the algal program will be applied, how much funding will be made available and the eligibility criteria.
“Whether it’s here in South Australia or Victoria, many farmers across the country are battling some of the driest conditions of their lifetimes. The Regional Investment Corporation shouldn’t be diluted in any way, particularly at a time when it is most needed,” the South Australian dairy farmer said.
“The algal bloom is a huge issue too but it deserves its own dedicated federal response.
“It is frustrating that when manufacturing and other industries face a crisis, the federal government provides targeted relief, but there’s no clear direction when it comes to agriculture.”
Mr Hosking said the latest federal move highlighted the need for the Prime Minister and federal government to be more engaged and consultative with farmers.
The VFF president has called for Mr Albanese to personally visit a drought-hit Victorian farm during an upcoming trip to Ballarat.
“We consistently called for urgent reform of the RIC process — from easier access to the RIC loans and quicker processing applications,” Mr Hosking said.
“It’s unclear at the moment what these changes related to the algal bloom mean. We need the PM and federal government to consult with farmers as a matter of urgency, because the huge financial pressures of drought aren’t going away anytime soon.”
On Wednesday, Mr Albanese said: “what we will do is work with the Minister for Agriculture, who’s been working closely with relevant stakeholders to extend the operations of the RIC and improve those operations”.
“So, as part of this work, the Government will add this new stream working through.”
Responding to the announcement, NFF president David Jochinke called for clarity over RIC’s future beyond 2026, and so it could “continue its core purpose of supporting farm businesses to build resilience for drought and other events”.
Liberal MP Tony Pasin, who represents both the Murray River regions in the north of his Barker electorate, and the drought-hit Limestone Coast, said lumping both issues together weakened federal investment on two separate needs.
“It’s galling to see Labor raid funding set aside for drought-affected farmers to cobble together this package,” Mr Pasin said.
“The approach of pitting one disaster against another that ultimately shrinks the pool available to producers battling one of the worst droughts in memory is unconscionable.”
A spokeswoman for RIC said the corporation has $328m in new loan funding remaining for the current financial year, and “operational funding beyond FY2026 to continue to manage existing customer loans throughout the remainder of their loan term”.
“RIC has approved over 130 new loans for Australian farmers nationally as at 31 July 2025.”
This represented a 24 per cent growth in new loans approved, financial year-on-year.
A spokesman for Agriculture Minister Julie Collins did not directly answer questions over whether new funding would be provided for the new loan stream announced by the Prime Minister.
“We will continue working with farmers and all levels of government to understand the conditions farmers are facing, including at our upcoming National Drought Forum, which will bring the farming industry together with policy makers to discuss practical initiatives for immediate and long-term response,” he said.
“The Minister for Agriculture will continue working with stakeholders to finalise the Significant Ecological Event Assistance stream of RIC, and to ensure this support
is available in areas of greatest need as soon as possible.”
The government is understood to be considering the independent review of RIC, completed last year.
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