RIC loan helps cattle farmer through Victoria’s dry conditions

A beef cattle farmer in Victoria’s southwest is hoping a RIC Drought Loan will enable him to manage his herd through dry conditions, reduce debt over time, and improve his risk position.

Fourth-generation farmer Leon Wheeler and his son, Rhys, breed Hereford cattle on their property in Wallacedale and have been through almost 2 years of low rainfall.

“It’s unheard of, our area’s really safe,” he said of the average rainfall in the area.

“We might miss out on a season, but never 12 months, let alone 2 years.”

Leon said 2021-23 were good years where cattle prices boomed and interest rates were low. A neighbouring property came up for sale and he took the opportunity to expand the farm.

“But then cattle prices crashed, interest rates went up about 12 times and that really hurts, it’s hard to pay the capital off,” he said.

“There’s no ground moisture at all.

“During the June long weekend, we had 68mm and you wouldn’t know where it went – the ground just soaked it up.”

Leon learned about RIC at the weaner sales from a regular buyer and refinanced some of his commercial debt with a RIC Drought Loan in early 2025, taking advantage of RIC’s concessional interest rate.

“RIC was 2 per cent cheaper on the interest rate than the bank, so that’s what made it attractive,” he said.

“During the 5-year interest-only period, I’m hoping to get some of my bank debt down and that will really help me.”

Leon was able to cut enough hay in spring 2024 to last 12 months and has bought additional hay to keep his 560-strong herd fed in the short term, but hoped for rain in the coming season to enable him to replenish his supply without needing to buy feed or destock.

Leon said he was passionate about family farming and hoped the business might one day pass to his grandson.

“I was bred and brought up on farming and I really push family farming – with family farming, there’s more producers, farming relies on competition,” he said.

“But right now, the first principle is to get my debt to a more comfortable level.”

If you are considering a RIC Drought Loan, visit ric.gov.au/before-apply