Frequently asked questions (FAQs)

Relevant on-farm experience means that you or a member of your farm business having previously owned the business for 3 years or more. Equivalent experience is assessed on a case-by-case basis and can include working on the family farm, managing another farm business, Agribusiness qualifications, experience working closely with the manager of a farm business, or other complementary qualifications or experience.   

Read our explainer article for more information.

Succession planning is the development of a plan that allows the smooth transition of the management of a farm and the farm assets from the one generation to the next.

Multiple events that follow one another. This could include drought conditions followed by an unexpected market closure. The first event should have occurred within the last 5 years.

A Drought Management Plan is a simple document that outlines activities and practices your farm business undertakes or will undertake to prepare for, manage through, or recover from drought conditions. 

Use our template here.

The Australian Government no longer makes drought declarations. You do not need a drought declaration to apply for a RIC Drought Hardship Loan. RIC Agri Lending Specialists will consider a range of factors including the historical rainfall deficiency and outlook data for where the farm business is located, historical and current financial statements, and projections for the next 12 months.

No. This loan is to support farmers in severe, long-term drought to manage through by helping to pay for operating expenses.

To be eligible for a Drought Hardship Loan, you must be able to demonstrate you have been in drought for at least two years, and you expect to be financially impacted by drought for at least the next 12 months. Please don’t self-assess. You can call us on 1800 875 675 to discuss your individual circumstances.

The interest is accrued daily and added to your loan at the end of year 1 and then the end of year 2.

Yes, you can repay your loan at any time.

Yes, farm businesses with other Commonwealth and State-based concessional loans can apply for a RIC Drought Hardship Loan, noting that the value of these must not exceed $3 million. Existing RIC farm business loan customers may also apply for a Drought Hardship Loan.

RIC’s Drought Loan can assist eligible farmers to prepare, manage through or recover from drought. Farmers may also apply for a RIC Farm Investment Loan if they’ve been financially affected by drought and other natural disasters like bushfire. Additional support programs available beyond RIC loans are listed on our website.

RIC does not charge application fees or ongoing loan management fees. Borrowers may need to pay third‑party costs associated with establishing, varying or managing their loan.

Yes. Farmers can apply for state-based concessional loans and a RIC loan and will need to satisfy eligibility, credit and risk assessment criteria. We encourage farmers not to self-assess and to contact us to discuss their individual situation.

The affected business must be an authorised aquaculture or wild catch fishing business. You will need to demonstrate that your affected business is in financial need of a concessional loan and provide evidence to show a material reduction in the business turnover because of the marine harmful algal bloom event that was first detected in March 2025 off the coast of South Australia.

RIC Agri Lending Specialists will assess a material reduction in turnover because of the marine harmful algal bloom by considering examples which may include turnover reduction and product/catch reduction. Potential applications are encouraged not to self-assess and to talk to the RIC team about their individual situation.

As part of your application process, you may be asked to provide evidence that your business meets the eligibility criteria. The types of evidence required will depend on the individual circumstances of your business. Contact us if you would like to discuss your application before compiling supporting documentation.

No. The Marine Recovery Loan has been designed to support with the long-term recovery of eligible primary production businesses in aquaculture and wild catch fishing. There may be other state and Australian Government financial assistance and grants available to support other small businesses such as tourism, recreation, hospitality, leisure and seafood processing who are not eligible for this loan. This was a decision of the Australian Government.

Yes. The loan can be used to refinance existing debt at a lower interest rate to improve cash flow, pay operating expenses such as salary, rent, utilities and other administrative costs, and capital expenditure to purchase, upgrade or maintain long-term assets that will provide benefits over multiple accounting periods such as property, plant, equipment, vessels and technology infrastructure.

To be eligible for a Marine Recovery Loan, you must be able to demonstrate your business has had a material turnover reduction because of the marine harmful algal bloom event. Please don’t self-assess. We encourage you to call us on 1800 875 675 to discuss your individual circumstances.

No. The Marine Recovery Loan is to help aquaculture and wild catch fishing businesses recover and rebuild after the South Australian harmful marine algal bloom event which started in March 2025

Yes, you can repay your loan at any time.

Yes. Please check the eligibility criteria before applying and call the relevant organisations to discuss your individual situation. We encourage to not to self-assess.

RIC has multiple loans available for farm businesses and fish producers including a Drought Loan which can assist eligible farmers to prepare, manage through or recover from drought. Eligible industries may also apply for a RIC Farm Investment Loan if they’ve been financially affected by drought, natural disasters and other unforeseen cumulative impacts. Please read the guidelines and take the online quick quiz eligibility checker to discover if a RIC loan is right for you. Additional support programs available beyond RIC loans are listed on our website.

There are a range of additional support programs available to provide financial relief for eligible businesses including: 

• Licence Relief (open until 30 June 2026): Fee relief for commercial fishers impacted by algal bloom | PIRSA
• Small business grant (open until 31 July 2026): Algal Bloom Small Business Support Grant | Small and Family Business
• Fisheries and Aquaculture Assistance Grant (until 31 July 2026): Algal Bloom Fisheries and Aquaculture | Small and Family Business

RIC does not charge application fees or ongoing loan management fees. Borrowers may need to pay third-party costs associated with establishing, varying or managing their loan.

Yes. However, eligibility, credit and risk assessment criteria must be satisfied. Please do not to self-assess and contact RIC to discuss your individual situation.

A business that derives the majority of its income from primary production within the agricultural, horticultural, pastoral, apicultural or aquacultural industries. 

Read our explainer article on eligible industries.

RIC loans have a variable interest rate which is reviewed twice a year, in consideration of any changes to the Australian Government 10-year bond rate. Any change in RIC interest rates will take effect from 1 February or 1 August each year.

RIC loans are different from government grants, they must be repaid. Eligibility criteria applies and as part of our responsible lending obligations, we assess your ability to make repayments and meet interest commitments.

At the end of your loan term, a residual balance will remain. You can choose to repay this amount in full or refinance back to your commercial lender.

We are proud to work alongside the Australian agricultural sector and the financial services industry, but we are not a bank. RIC provides loans, not overdraft, savings or transactional accounts. The Australian Government does not make a profit from RIC loans. RIC offers low-interest, long-term loans with no account keeping fees and no penalty fees for early repayment.

Yes, It is possible for a RIC customer to have multiple RIC loans if they meet eligibility, lending criteria. Each loan requires a separate application, with its own eligibility and financial assessment.

The maximum combined RIC farm business loan amount is $2 million per customer for the Drought Loan, Farm Investment Loan and AgriStarter Loan.

The maximum borrowing amount for the Drought Hardship Loan is $250,000.

The maximum borrowing amount for AgBiz Drought Loan is $500,000.

Farm business with a RIC loan can apply for a RIC Drought Hardship Loan, noting that the applicant must not hold more than $3 million in Commonwealth and State-based concessional loans.

If multiple applicants are connected through the ownership, income or management of your business operations we may assess their eligibility for the maximum loan amount on a combined basis.

Gain early support from your bank or commercial lender for your RIC loan. For applications that require shared security, this is important as we will likely need to establish a security agreement with your bank, known as a Deed of Priority.

Loans are expected to have sufficient security within standard lending practices. Security will be assessed on a case-by-case basis. It can include a registered mortgage over land, a registered security interest in water rights, or in some cases, a registered mortgage over livestock.

YIYO is a form of cash flow projection or summary of your farm business’ performance. It projects the expected cash flow from operations in normal conditions and includes yields, prices, costs for each season of farming as well as your long-term averages. It can be as simple as an excel spreadsheet or you can use agricultural-specific software programs.

The YIYO cash flow projection will be important in our credit assessment. This should reflect the operation once it has developed to full productive capacity. We will require at least two years of projected cash flows. Applicants are encouraged to supply all assumptions, including cropping plans or stock schedules to support the transition to achieving the YIYO cash flow. For applicants undertaking the establishment of tree crop enterprises, cash flows should reflect the emerging productive capacity of their trees and the YIYO cash flow will need to demonstrate the viability of the enterprise within the 10-year term of the loan.

Commercial debt is debt that has been established upon commercial interest rates, terms and conditions. This may include financial institutions and other providers where formalised loan contract is in place. The contract would typically include commercial interest rate, repayment schedule, loan term, security arrangements and mortgage documentation.

Read our explainer article for more information.

If you can show in your YIYO forecast that your business has sufficient cash to meet interest payment, operating expenses, living expenses, principal repayments, and any capital reinvestment to keep the business operating, you may be deemed as viable.

Yes, if the accommodation is used for workers that directly support primary production. This would not be the case if the accommodation was to be used as a 'farm stay' tourism accommodation. 

RIC does not charge application fees or ongoing loan management fees. Borrowers may need to pay third‑party costs associated with establishing, varying or managing their loan.

You will need to request a variation to your loan agreement.

Request a variation

Review questionnaires help RIC understand how your circumstances may have changed since your last review, allowing us to confirm key information without the need for phone calls or additional documents. Completing the questionnaire is a requirement of the review process.

This is a 2-step process. The first step is lodging a variation with RIC, notifying us of your intention to subdivide. Once RIC has provided an initial consent and the subdivision process is complete, you or your professional adviser is required to lodge a second variation request to update your security information after registration.

If you require additional finance, contact your commercial lender first to discuss your options. A Deed of Priority (DOP) is a legal agreement between lenders, outlining how they will share the use of security in support of a loan and the allocation of proceeds from sale of security in the event of borrower default. Customers should advise RIC if you are anticipating any changes to you borrowing needs which may impact the current security structure of your RIC loan.

Our team will contact you and discuss your individual circumstances. Keep a look out for our call so we can work alongside you to meet your obligations.

Your credit score will not initially be affected by seeking hardship assistance. Please contact RIC and our team will discuss your individual circumstances and payment options with you.

No. Financial hardship assistance from RIC does not involve fees, charges or penalty interest. Interest on the loan balance will continue to accrue during this period.

Our team may ask you to provide financial information or additional documentation to support your request. They will discuss these requirements with you based on your individual circumstances.

Yes, RIC may seek information from your commercial lender and/or share information, in accordance with your loan conditions. You may also choose to provide RIC with consent to work more closely with your lender in the management of financial hardship.

We recommend you also speak to your commercial lender and seek further support to address any cash flow or liquidity difficulties. 

You should also speak to your professional adviser or Rural Financial Counsellor for other available options. 

For a list of additional federal and state government assistance programs, click here.