Applications are now open for the new RIC (Regional Investment Corporation) Drought Hardship Loan to assist eligible Australian farmers to pay for operating expenses when facing long-term drought.
Nothing to pay in the first two years – interest accrues during this time to paid later
To be eligible to apply for a Drought Hardship Loan, farmers will need to show they have been in drought for at least two years and expect to be financially impacted by drought for at least the next 12 months.
The Drought Hardship Loan allows eligible farmers to borrow up to $250,000 over five years with nothing to pay in the first two years. Interest will accrue in this time to be paid in year three.
The loan can be used to cover farm business operating expenses including bills, wages, utilities, insurance, fodder, added, transport and livestock care and purchases so farmers can keep going despite the dry conditions they may be facing. It cannot be used to refinance existing debt.
The Australian Government no longer makes drought declarations. You do not need a drought declaration to apply for a RIC Drought Hardship Loan.
RIC will consider a range of factors when assessing drought-affected farmers including historical and projected rainfall in their region and how their financial situation has been affected, and will likely continue to be affected, by drought.
More information on the Drought Hardship Loan including eligibility, guidelines and how to apply is available at ric.gov.au/drought-hardship.
Other RIC loans available for Australian farmers
The RIC Drought Hardship Loan broadens RIC’s low-interest loan offering which includes the Drought Loan, Farm Investment Loan, AgriStarter Loan for first farmers and succession planning and the Agbiz Drought Loan for farm-related small businesses supplying farmers affected by drought.
To help farmers recover and prepare throughout the full drought cycle, RIC’s existing Drought Loan enables eligible producers to borrow up to $2 million over 10 years, with interest-only payments in the first five years and principal and interest repayments for the remaining five years.
For more information on the RIC Drought Loan visit ric.gov.au/drought.
The Farm Investment Loan can also be used when a farmer has had financial downturn due to drought. Farmers can borrow up to $2 million over a 10-year term. The first 5 years are interest-only followed by principal and interest repayments for the remaining 5 years.
To be eligible for a Farm Investment Loan, farmers need to show they have had, or will have, over a consecutive 2-year period, significant financial impact from an event, s such as drought, natural disaster, pests or disease, biosecurity restrictions, market closure or significant restrictions – or a combination of these events.
For more information on the RIC Farm Investment Loan visit ric.gov.au/farm-investment.
To apply for RIC loans, farm businesses need to have commercial debt, be able to repay the loan, provide adequate security and be able to demonstrate a financial need.
You can learn more about RIC loan eligibility requirements by exploring the RIC Ready Toolkit available at ric.gov.au/before-apply.
Every day RIC Agri Lending Specialists support farmers across Australia who are facing tough financial times. Since start-up in 2018, RIC is proud to have delivered low-interest loans to more than 3,550 farm businesses valued at over $3.76 billion as at 28 February 2026.