New Drought Loan Welcomed by Dairy Farmers

Australian Dairy Farmers has welcomed the Federal Government’s announcement of a new Drought Hardship Loan through the Regional Investment Corporation, as dairy farmers face the prospect of another challenging dry season.

The loan will allow eligible farmers to borrow up to $250,000 over five years, with repayments and interest fully deferred for the first two years.

ADF President Ben Bennett said the announcement reflected sustained advocacy from the dairy sector.“This is a positive step and a direct result of the strong, consistent advocacy ADF has led throughout 2024 and 2025,” Mr Bennett said.

“Dairy farmers have endured rising costs, water shortages and some of the harshest seasonal conditions in years.”

The Government has also released its response to the Craik Review of the Regional Investment Corporation, agreeing to 21 of 32 recommendations, including improved collaboration with commercial lenders and regular reviews of loan limits.

Mr Bennett said while the new hardship loan was welcome, further reform was still needed.

"Farmers are looking for genuine relief, not products that simply mimic the commercial market,” he said.

ADF says it will continue working with government to ensure the loan system is faster, simpler and delivers meaningful support when farmers need it most.