New RIC Loan highlights ongoing need for South Australia’s own Agency
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New RIC Loan highlights ongoing need for South Australia’s own Agency
Livestock SA has welcomed signs of greater flexibility in the Federal Government’s new Drought Hardship Loan, while emphasising that the announcement again exposes the structural gap facing South Australian producers who lack a dedicated state-based rural finance and development agency.
Yesterday’s announcement from Federal Agriculture Minister Julie Collins confirmed two new RIC loan products, including the Drought Hardship Loan, developed in response to the Review of the Operation of the Regional Investment Corporation Act 2018.
Eligible farmers who have been drought-affected for at least 24 months and anticipate ongoing impacts into the next season will be able to borrow up to $250,000, with a five-year loan term. Repayments are fully deferred for the first two years, although interest continues to accrue over that period. Full operational guidelines are still to come, and the changes will require legislative amendments in 2026 before becoming available.
Livestock SA Chair Gillian Fennell said the announcement demonstrates a willingness to adjust national drought support settings, but still falls short of what South Australian producers need.
“While there may be some producers that benefit from these proposed changes, it is not what we have been asking for. This is an interest-deferral product, not a no-interest moving to low-interest loan. But it does show that government recognises greater flexibility is needed,” Ms Fennell said.
“More importantly, it reinforces why South Australia must establish its own Rural Finance and Development Agency. SA producers and regional communities deserve access to timely, tailored financial tools that support a resilient and sustainable industry.
Ms Fennell said the announcement should serve as a catalyst for stronger state-level leadership and a long-term approach to drought resilience.
“We can’t rely on the Federal Government to do what is best for our state, that is the role of the South Australian Government. We look forward to working with Premier Malinauskas and Minister Scriven to advance the SA red meat and wool sector, which contributes significantly to the state’s economy, exports, and regional employment,” she said.
Livestock SA CEO Travis Tobin said the organisation will continue to monitor the development of the new loan products and the legislative process, while pushing forward with its election priorities.
“These changes give us a platform to continue advocating for a state-based agency and a structured SA Drought Agreement to provide greater certainty, clearer cost-sharing, and support designed around local conditions,” Mr Tobin said.
“Producers need financial tools that match the realities on the ground, and those decisions need to be made in South Australia.”
Livestock SA will provide members with further updates as the Federal Government releases full guidelines and legislative timelines.
Ends
- Chair Gillian Fennell is available for interview
Further information:
Cathy McHugh
Communications Manager
0412 515 819
About Livestock SA:
Livestock SA is the peak industry body representing South Australia’s livestock producers, including more than 5,200 sheep producers, 2,700 beef cattle producers and several hundred goat producers across the state.
South Australia’s red meat and wool industries contribute approximately $4.49 billion to the state’s economy each year, and employ over 21,000 South Australians, accounting for 28% of all agricultural sector jobs.