ROD CORFE: John Howard is the Chief Executive Officer of RIC, which is the Regional Investment Corporation, part of the Australian Government. Mr. Howard, how are you?
JOHN HOWARD: Very well, thanks Rod. Thanks for having me.
ROD CORFE: There's to be a free webinar in regards to helping farmers understand RIC.
JOHN HOWARD: Sure is. On Wednesday the 19 August, beginning at 12 noon, we've got a Get RIC Ready webinar. And what that's all about Rod, is to help farmers understand what support may be available before they need it. So, we do concessional loans into the agriculture sector to help manage through hardship or when financial pressures come into bear on the back of drought and other external events or even for those helping with succession planning or new entrants. It's important for people to understand in advance, what's required to be eligible for one of our loans. So, this Get RIC Ready webinar next Wednesday, 19 August is aimed to help answer some of those questions.
ROD CORFE: And I suppose you've pretty much answered this question, but tell us, how did you RIC come about and what is the main aim?
JOHN HOWARD: So, we've been in place for about eight years now. During those eight years we've done over 3,600 loans and over $3.8 billion to people that are predominantly trying to recover and manage through drought, but not only that in also those through biosecurity events or floods or fires, anything, any of those activities outside of their control where they've had a two-year impact and we are there to help them manage through that by having a lower interest rate than they may be able to have with their bank. So, generally we're around 2 per cent lower, but it varies from case to case and therefore when they're in tough times, we're there to help them manage through by having lower cash outflows as a result of a lower interest rate.
ROD CORFE: And John, is it for the bigger end of the market or is it for single farmers, family farms?
JOHN HOWARD: Family farmers are absolutely the target audience we're there for. There's very clear eligibility criteria, hence why we find it important to have the webinars like this one next Wednesday because it's important to understand what we find is it's really important for people to understand in advance of the need rather than waiting before things get really tough and trying to identify what options are out there to help them manage through. So, the aim is before people are really in dire straits, understand what options are available to them. We're absolutely one of those options - that's why we're here, especially with the family farm contingent, who is front and centre of our target audience and therefore we encourage everyone to go to our website. So, ric.gov.au/events, register for the event to be held Wednesday 19 August at 12 noon. Even if you're not available on that date, I'd encourage people to go and register because you'll get a copy of the recording sent out to you if you're not able to make that time.
ROD CORFE: It appears that RIC is a fairly friendly sort of place, trying to help before there's a big problem. Some people are sometimes scared about asking for help and organising alone.
JOHN HOWARD: Yeah, look, and that's why we're really encouraging and we try and get in front of the curve because when things get tight, you want to be ready to access our loan products sooner rather than later because you get the benefit earlier when things are in strife. So, who should attend? It's farmers, agricultural advisors, accountants, financial counsellors, you know, any industry stakeholders that participate in the sector. Be educated, get some visibility of how our products work so that you're able to implement them sooner rather than later, should that two-year impact be able to be demonstrated.
ROD CORFE: The world's going through lots of challenges at the moment. Are you seeing an increase in people trying to get assistance?
JOHN HOWARD: Oh, we're definitely seeing an increase, you know. Our last quarter, especially, has been one of our highest over the last four or five years, which is reflective of some areas that we've had extended dry periods. There are definitely cash flow constraints that are coming into people's operations on the back of rising operating costs, you know, higher interest costs, broader market challenges. So, therefore people are very aware and keen to identify what might be able to help them and that's where our loans come into play. So, it's important to understand that we're not there for everyone. But if you think RIC might be an option for you, don't self-assess, don't second guess, get involved, come along to the webinar or register. Again, it's on ric.gov.au. Register. Be informed, find out what's required and that way if you are in a situation of needing some help, you'll understand what role we've got to play.
ROD CORFE: Thanks for your time today.
JOHN HOWARD: Thanks Rod, appreciate it.
ROD CORFE: From Regional Investment Corporation, part of the Australian Government, RIC, as we like to call it, the Chief Executive Officer.
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