New drought loan support for South Australian farmers

Drought-affected farmers in South Australia’s Murray Mallee, Riverland and Upper North regions will soon be able to access new low-interest loans of up to $250,000 under a state government support package.

The SA Drought Loan Scheme, announced earlier this week, adds to the state government’s existing $97 million drought assistance program and will be capped at $200 million.

Eligible grain and livestock producers will be able to apply for loans with a 10-year term, including a two-year repayment holiday where no principal or interest payments are required.

The government says the pause is designed to give farmers breathing space as they work to restore cash flow after prolonged dry conditions.

Interest rates will be concessional for the first two years, set at half the Commonwealth 10-year bond rate, before reverting to the bond rate for the remaining loan term.

Over the life of the loan, the scheme is expected to be cheaper than comparable federal concessional loans and commercial finance options.

Applications will open in March, with the program running until the end of 2026.