Pushing through the drought of a lifetime

Updated June 2026

 

Several years into their RIC loan term, Chris and Nick Blunt are reaping the rewards of good financial planning. 

Chris Blunt is a third-generation farmer who runs 4000 composite ewes on more than 1000 hectares east of Orange in Central West NSW, together with his son, Nick. 

The drought of 2017-20 was the worst the property had seen in 100 years and for the first time in Chris' lifetime, the spring-fed creek which supplied water across the property stopped running completely. 

“We were in a terrible position here then,” he said. 

Chris said one of the hardest parts of the drought was coming home to an empty rain gauge when the neighbouring areas received rain.

“It starts playing with your head,” he said. 

"You just want to shut the door, pull the curtains and not look outside because it’s all too hard.” 

Chris found out about RIC loans through Nick, who worked in banking for five years, and the Blunts applied for a Drought Loan in late 2019. 

“I’m very lucky, I’ve actually got an ex-banker on the staff,” Chris said. 

“Nick’s been great because of his background – he’s used to the paperwork and knowing what we need and the banks need.”

Loan enables investment 

RIC’s 5-year interest-only terms and low interest rate improved cash flow and enabled the Blunts to feed their stock through the drought and invest significantly in water infrastructure.

They chose to sink a new bore to access fresh water for stock and install a reticulated water system.

With high-quality water and a transition to crossbred Australian whites with a new breed called SheepMaster, the Blunts have seen a marked improvement in stock condition. 

“The benefit [the RIC loan] gave us with that reduced interest rate was massive in the sense that when the drought broke, because we were down on our breeding numbers significantly, it allowed us to purchase in big swags of breeding stock again and really lift our numbers back up in a rapid amount of time,” Nick said. 

“The significant increase in weight gain with clean water is something which is huge when you’re running an operation like we’re running.”

Using the application as a business health check 

The RIC loan application process prompted Chris to look at the business’ long-term sustainability and exactly how the drought had affected the enterprise. 

“It makes you sit down and really analyse where you’ve been and where you’re going,” he said. 

Nick said the RIC loan application process was what he expected it to be. 

“It was similar to any bank: cash flows, financials, statement of position, the general sort of stuff which once you’ve done it once and got a good base template, it’s not too hard to copy and paste,” he said. 

“If you’re doing budgets to actuals or keeping a bit of a pulse on your business, you can get to a certain point in time and go, ‘geez we really need make some tough decisions now’, as opposed to getting to the point of jumping off a cliff and it’s too late. 

“I think mapping that out is good business health. Gone are the days of doing it on the back of a beer coaster and handing it to your bank manager.” Nick recommended applicants talk to their accountants or Rural Financial Counsellors for help and advice. 

“There’s more than enough assistance out there if someone wants to get an application done,” he said.

“It’s more about taking time out of the day, sitting down and actually doing the work. 

“It’s not a hard process, but I think some people get a bit overwhelmed by it and put it in the too hard basket.” 

A bright outlook

Chris said it was important to realise a RIC loan is not a handout. 

“There’s still an old, very conservative attitude in the bush, even with some of our younger farmers that, ‘oh we don’t take handouts’," he said. 

"But it’s not a handout – it’s a loan and you’ve got to pay it back.

“Take advantage of it, it can make all the difference.”

Chris said it was an exciting time to be in agriculture. 

“I’m very fortunate to have Nick with me, [who is] very proactive in the tech space and happy to push that modernity forward, which I would have struggled with without him,” he said. 

“We’re really moving forward, it’s great to see, it’s great to be part of. 

“RIC’s been wonderful and it’s a great facility for Australian agriculture.

 “To have RIC there specifically financing the sector and driving us towards higher productivity is an absolute gamechanger for the whole agricultural industry and long may it remain.” 

Are you currently facing dry conditions in your business? Visit ric.gov.au/loans