One in two SA grain producers struggling to access finance during drought - new survey reveals

A recent survey by Grain Producers South Australia has revealed the one in two South Australian grain producers are struggling with accessing finance or credit during the drought.

Completed by more than 130 grain producers from across SA, the survey highlights that high levels of drought-induced debt combined with tightening lender risk appetites, are making it increasingly difficult for growers to access the finance needed to keep their businesses running.

GPSA Chief Executive Officer Brad Perry said the results paint a troubling picture of grain producers being pushed to the brink in the second consecutive year of a statewide drought.

“This survey confirms what we are hearing right across the state – grain producers are being met with more hoops, stricter conditions, and slower processes to secure critical finance to get them through this season and beyond,” Mr Perry said.

“The survey shows there are examples of grain producers being told they don’t qualify for support due to the drought-impacted seasons, even if they’ve met their financial obligations previously. It’s a precarious situation for grain producers right across South Australia.”

Mr Perry said responses from the survey show that there's currently a lack of consistent drought relief options through financiers - which is compounding financial stress.

“It is highly concerning that the survey found there are still financiers telling some of grain producers they’ll only consider hardship support if there’s a formal drought declaration, while comments in the survey suggest others aren’t even aware of the pressures growers are under,” he said.

Mr Perry said GPSA will be providing the results of the survey to the State and Federal Government and again writing to banks and financiers to highlight the feedback and concerns from grain producers.

“We need to ensure grain producers don’t just survive this drought but are set up to recover when seasonal conditions improve. Access to finance is a critical part of that equation and these survey results demonstrate that much more needs to be done."