$100m lifeline for drought-hit Aussie farmers

 Farms can apply to borrow up to A$1 million over 10 years at a variable interest rate starting at 3.21%. A$150m has already been loaned to 286 farms in Queensland and New South Wales under two earlier schemes. 

Queensland and parts of New South Wales are reeling from the worst dry conditions on record.

Federal Agriculture Minister Barnaby Joyce says the government is listening to farmers struggling under debt.

“Farmers and their families can control many things, but not the weather. While we can’t force the rain to fall we can provide access to low interest loans so that our farmers and graziers can better manage their finances and businesses during drought and as they recover.”

Queensland farmer lobby AgForce says the new 10-year loans will go some way to help farmers. President Grant Maudsley says the current scheme requires recipients to refinance after five years, “not enough time to recover from historically dry conditions”. 

AgForce and national farmer lobby National Farmers Federation are working with Joyce and state agriculture ministers for more drought assistance. ‘”These loans will hopefully assist in alleviating some of the pressure felt by producers as a result of widespread and severe drought conditions,” says Maudsley.

NFF president Brent Finlay says there’s now more to be done particularly given the rising debt in certain regions. It wants lower interest loans with longer terms, reduced paperwork for farm household allowance, certainty of funding for rural financial counsellors, and more money for water infrastructure and pest animal control.

“These measures will assist farmers while in drought, and will help them recover and quickly ramp up production when the rains come.

“In the current environment, a small level of government assistance for many otherwise solid, profitable businesses would ensure they can respond quickly and effectively once seasons turn around in their favour.

“Beyond this, long-term drought policy is still missing in action. We need a drought policy framework that focuses on preparedness but also recognises that in-event and recovery support is sometimes needed,” says Finlay.