Australia’s peak farming bodies are demanding urgent action from the Federal Government after it is yet to respond to two critical drought resilience actions.
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Australian Dairy Farmers, the VFF, NFF, NSW Farmers and Primary Producers SA Independent have each called on the Federal Government to answer policy asks.
Specifically, to commit to the Regional Investment Corporation and respond to the Independent Review of the Regional Investment Corporation Act 2018.
The RIC provides low-interest loans to farm businesses to help farm businesses become more resilient and respond to drought conditions.
In the seven years since the RIC was established, it’s helped almost 3400 farm businesses, saving farmers over $354 million in interest payments.
“More than 40 per cent of Australia’s dairy farmers are in drought, many of them battling the driest conditions on record. Meanwhile, dairy farmers in NSW are cleaning up after a 1-in-500 year flood,” Australian Dairy Farmers president Ben Bennett said.
“The RIC needs to be a tool to help farmers with these disasters, and action is needed now.”
VFF president Brett Hosking.
VFF president Brett Hocking said the VFF would continue to advocate for farmers.
“We’ve been vocal in saying that the RIC could be playing a greater role in supporting farmers, but to achieve that we first need certainty about this program’s future,” Mr Hosking said.
The Independent Review was commissioned in November 2023, and the final report provided to government over a year ago.
The report’s key recommendations include:
Concessional loans are an effective policy tool to support long-term viable farmers and farm related small businesses in financial need, particularly during drought.
The government retains the RIC as the delivery means for concessional finance.
“We know 94 per cent of RIC customers are family owned and operated businesses. These family farms name machinery upgrades, succession planning, building climate resilience and sustainability as their top priorities,” NSW Farmers president Xavier Martin said.
“The government must stop dragging its feet and commit to the RIC.”
NFF president David Jochinke.
NFF president David Jochinke said the NFF had formally written to the minister twice seeking this commitment.
“The NFF appreciates that given the significant investment of public funds, along with policy and technical considerations, it is important the government carefully considers its response to the RIC review,” Mr Jochinke said.
“We are concerned producers have finished their FY26 budgeting without a clear signal on the government’s commitment to concessional lending and the RIC as the tool to deliver it.”
Two key policy asks remain unanswered:
An immediate extension of the RIC’s loan capacity beyond June 30, 2026.
A formal response to the independent review of the RIC within the first 60 days of forming government.
“South Australia has experienced one of the driest periods on record, with many regions now experiencing their third consecutive year of drought,” Primary Producers SA Independent chair Simon Maddocks said.
“We urge the extension of RIC’s loan capacity beyond June 30, 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.”
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