Response to government’s low-interest loan scheme
Response to government’s low-interest loan scheme
Livestock SA, although surprised by the government’s announcement, has welcomed any additional support that provides relief to drought-affected producers, while cautioning that the South Australian Government’s newly announced low-interest loan scheme remains restrictive in scope and will not reach all producers in need under current eligibility settings.
Livestock SA said the structure of the scheme means support will be limited to a narrow cohort, despite drought impacts being widespread, prolonged and uneven across production systems.
“This measure may assist some producers with short-term cashflow pressures, but it is not a universal solution,” Livestock SA said. “The eligibility criteria and regional targeting mean there will be producers experiencing genuine drought stress who are unlikely to qualify under the current settings.”
Livestock SA also noted that the scheme is highly conditional, with loan access dependent on specific geographic definitions, drought duration thresholds and financial assessments that may exclude mixed-farming and livestock businesses whose circumstances do not neatly align with program criteria.
“Drought does not respect boundaries on a map, and support mechanisms that rely heavily on rigid eligibility rules risk leaving producers behind,” the organisation said.
Importantly, the loans remain an interest-deferral product rather than genuinely low- or no-interest finance, with interest continuing to accrue during the repayment holiday period. For many producers already carrying elevated debt levels after successive dry seasons, this limits the long-term effectiveness of the support.
Livestock SA said the announcement again highlights the structural gap facing South Australian producers, with the state lacking a dedicated rural finance and development agency to design and deliver timely, tailored financial tools.
“Other states have state-based agencies that can respond quickly, flexibly and in line with local conditions. South Australia continues to rely on reactive measures and federally designed products that do not always reflect our production systems or regional realities,” the organisation said.
While acknowledging the Government’s willingness to adjust drought support settings, Livestock SA said meaningful assistance requires a coordinated, long-term framework, rather than ad-hoc announcements delivered late in the drought cycle
“This announcement should be seen as a stepping stone, not an endpoint,” Livestock SA said. “South Australian producers need certainty, consistency and financial tools designed in South Australia, for South Australian conditions.”
Livestock SA continues to call for the establishment of a South Australian Rural Finance and Development Agency, supported by a structured SA Drought Agreement, to ensure drought responses are proactive, equitable and fit-for-purpose when producers need them most.
Ends
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.