Farm investment farmer

Farm Investment Loan

Recover from severe business impact and prepare for future financial disruptions.

Purpose

Strengthen your farm business. Take steps to access markets interstate or outside Australia.
Prepare for, manage through or recover from severe business disruptions.

Use this loan to:

  • Fund risk management

    Prepare for natural disasters, biosecurity risks, market closures or other disruptions such as diversifying markets or farm production.

  • Enhance productivity 

    Invest in new infrastructure, machinery or productivity enhancements to support growth. 

  • Refinance debt 

    Refinance existing debt at our low interest rate to improve cash flow.

  • Pay for expenses 

    Pay for operating and/or capital expenses to build your business. 

Loan terms

$2m
Maximum amount
4.99%
Variable rate*
10
Year term
5
Years interest only
$0
Extra repayments
$0
Application Fee
$0
Early payout fee
No
Redraw
Percentage of total debt

At least 50% of your total debt must stay with a commercial lender.

Frequency of repayments

Tailored to the cash flow of the farm business.

Repayment structure

First 5 years interest only, then principal and interest for remainder of the 10 year term.

After 10 years, you can refinance any remaining balance with a commercial lender.

Full terms and conditions are available in the loan guidelines.

*Interest rate effective from February 2024 to July 2024.


Eligibility

Take our quick quiz to help discover if a RIC loan is right for you.

 
You
  • are an Australian citizen or permanent resident
  • contribute or plan to contribute at least 75% of your labour to the farm business(under normal circumstances)
  • earn or plan to earn at least 50% of your income from the farm business (under normal circumstances)
  • own or lease land and use it for farming purposes (includes agistment)
Your business
  • solely or mainly sell products into supply chains that are interstate or outside Australia, or plan to in the future
  • is in financial need of a loan
  • has the capacity to repay the loan
  • is financially viable in the long term
  • has existing commercial debt
  • is an eligible industry such as agriculture, horticulture, pastoral, beekeeping (apiculture), or aquaculture industry
  • undertakes all primary production aspects of the business wholly within Australia
  • is registered for tax purposes in Australia with an ABN and is registered for GST
  • operates as a sole trader, trust, partnership or private company
  • is not under external administration or bankruptcy
You must
  • provide security for the loan
  • secure the support of your commercial lender for the proposed loan
  • repay the loan
You cannot use this loan for
  • purchase of private and domestic assets
  • payment of private and domestic expenses
  • purchase of and/or investment in non-farm assets and payment of non-farm expenses
  • paying out dividends
  • reimbursement for depreciation of assets tax or other statutory payments
  • your own labour costs
  • anything that you have already received government funding for (except to refinance debt from previous concessional loans)
  • any other non-eligible use listed in the loan guidelines

Experienced a severe business impact?

To be eligible for a Farm Investment Loan you must demonstrate that your farm business is in financial need of a loan. 

RIC will consider four key factors, while taking into account the individual circumstances of each farm business:  

  1. Cause of impact outside the control of the farm business.
    Significant impacts could include natural disasters, forced destocking, disease outbreaks, pest or weed incursions.
  2. Significant financial impact.
  3. Duration of the impact.
    You must demonstrate the impact has been (or will be over) a 2 year period. 
  4. Cumulative impacts.

For more information see section 4.2 of the Farm Investment Loan Guidelines.

Before you apply

You need to check
You need to have
  • Australian Business Number (ABN)
  • financial history
  • identity documents
  • proof of your eligibility
  • your business cash flow budget
Ask us a question

We are here to help.

Contact us if you have any questions.

Apply

There are two ways to apply for a Farm Investment Loan.

We encourage you to apply online.

You may need to contact your trusted financial advisor to help you complete your application.

  • Follow the Farm Investment Loan Document Checklist [198kB] to ensure you submit a complete application.
  • The online form has mandatory fields and documents. You must supply this information to progress to the next stage of the form.
  • You must submit all required information so we can start assessing your application and provide an outcome as quickly as possible.
  • Once you begin you will have 30 days to submit your online loan application. You will receive a reminder at 10, 20 and 30 days.

Apply now Resume application

 

  • Download the application form from the Resources section.
  • We can’t start assessing your application until we get all the information we ask for, including attachments.
  • Submit your application to info@ric.gov.au or post to:

Regional Investment Corporation, PO Box 653, Orange, NSW, 2800.

Resources

Guidelines

We will assess your application against the criteria in the loan.

Read the detail on who can apply for a loan and what happens after you apply.

Application form

Complete this form on your computer or print and fill it in by hand.

  • Right click on the link and select 'save target as' or 'save link as' to download the form.
  • Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.
  • Save the application form regularly as you are filling it in.
  • The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.

Cash flow budget

You must include your business cash flow budget with your application.

We will use this to help assess your financial position, and your ability to repay the loan.

If you do not have your own budget spreadsheet, you can use our template.

Note: This template may not meet government accessibility requirements. Contact us for help.

Statutory declaration

You may need to make a statutory declaration to support your application.

Commonwealth statutory declaration

Commonwealth statutory declaration

Guarantor asset and liability statement

You may be required to provide a guarantor's asset and liability statement with your application.

Guarantor asset and liability statement [214kB]

 

Guidelines

We will assess your application against the criteria in the loan.

Read the detail on who can apply for a loan and what happens after you apply.

Application form

Complete this form on your computer or print and fill it in by hand.

  • Right click on the link and select 'save target as' or 'save link as' to download the form.
  • Open the form using Acrobat Reader. Download a free version of Adobe Acrobat Reader DC software.
  • Save the application form regularly as you are filling it in.
  • The form will not work when opened in a web browser or other software, e.g. Microsoft Edge, Chrome, Safari, Preview.

Cash flow budget

You must include your business cash flow budget with your application.

We will use this to help assess your financial position, and your ability to repay the loan.

If you do not have your own budget spreadsheet, you can use our template.

Note: This template may not meet government accessibility requirements. Contact us for help.

Statutory declaration

You may need to make a statutory declaration to support your application.

Commonwealth statutory declaration

Commonwealth statutory declaration

Guarantor asset and liability statement

You may be required to provide a guarantor's asset and liability statement with your application.

Guarantor asset and liability statement [214kB]

 

 

Loan scenarios

Megan and Alex typically run a 500-head beef cattle operation in Western Australia. Sale animals end up in interstate food supply chains. They applied for a RIC Farm Investment Loan after they lost 40% of breeders in a flooding event and were affected by associated increased fodder costs for the remaining cattle.

Although the flood was a one-off event, they demonstrated a financial impact over the next several years through provision of cash flows and provided photographic evidence to support their application. Refinancing part of an existing commercial bank debt, Megan and Alex used the savings in interest to gradually rebuild their breeder herd numbers, paid for transport fees, purchased feed, and other farm operating costs.

Cindy operates a family-owned macadamia farm in Northern NSW. She sells the nuts to a processing facility where they are packaged and distributed locally, interstate and overseas. Sudden market forces reduced the demand for Australian-grown macadamias and subsequently their price dropped significantly. As a result, Cindy’s business experienced financial loss in the 12 month period.

Cindy applied for a Farm Investment Loan by providing information to demonstrate how her macadamias are sold through a processing facility interstate and flow to international supply chains, therefore meeting part of the eligibility criteria.

Although there is a current downturn in price due to oversupply, it is difficult to predict the impact of the next 12 months market conditions. Therefore, Cindy is unable to prove with a level of certainty the potential financial impact over two consecutive years. Cindy is unlikely to qualify but is encouraged to call the RIC and speak with an Agri Lending Specialist to discuss her application.

Lisa and Hugo operate a broadacre cropping property in New South Wales where they grow winter cereals including wheat, canola and barley, much of which is exported overseas. They recently came out of one of the worst droughts in their region, which affected farm productivity immensely. After a year of good rainfall, they harvested their first decent crops in 3 years but then a mouse plague damaged their stored grain, which was kept in silo bags, resulting in a downgrade to feed-quality grain.

They sowed their next crop, but successive months of above-average rainfall followed. Their farm machinery got bogged several times and they were unable to harvest a third of their grain before it downgraded in quality.
The couple applied for a Farm Investment Loan by showing the cumulative impacts on the business.

Lisa and Hugo used the loan to sink new bores to improve their property’s water security, installed permanent grain silos to secure future harvests, and upgraded roads around their property to improve machinery mobility during wet periods.

To discuss your individual business circumstances, please contact the RIC Contact Centre.

Brian is a beekeeper in Queensland. In addition to producing honey, he travels across state borders to contract his beehives to pollinate nut and berry farms. He employs one person part-time to assist him.

When a parasitic mite outbreak occurred at a neighboring apiary, authorities destroyed nearby hives and restricted the re-establishment of beehives in the region to minimise impact to the wider industry and the wild honeybee population.

Brian applied for a Farm Investment Loan by showing the financial impact over two years due to the unexpected biosecurity restrictions placed on his business and was able to provide evidence from local authorities that restrictions would be in place into the future for a minimum of 24 months.

Brian acquired new debt on the RIC concessional rate and used the funds to help build new hives and pay staff wages while his business recovered when restrictions were removed.