THIS year’s Drought Forum has only reiterated the need to provide farmers with interest free loans, according to Nationals Leader, David Littleproud.
The forum, hosted every two years by the Australian Federal Government, brings together representatives from the Australian, state, territory and local governments, industry, the financial sector, First Nations communities and the not-for-profit sector.
The topics discussed at the forum are tailored to current events, stakeholder interest and relevant policy initiatives.
The 2025 National Drought Forum was held on 8 and 9 September in Gawler, South Australia, jointly hosted by the Federal Agriculture Department and National Farmers Federation, addressing issues including the Future Drought Fund.
“Farmers at the Drought Forum are crying out for action and outcomes, not just more talkfests,” Mr Littleproud said.
“The drought is impacting farmers, especially the dairy industry.
“Australian Dairy Farmers is reiterating our calls for interest free loans for a minimum of two years; why is Labor hosting drought forums but then not answering their request?”
In 2020 the Coalition introduced a two-year interest-free period for loans up to $2m through the Regional Investment Corporation (RIC) for farmers experiencing drought hardship.
The zero per cent interest rate applied to new and existing drought loans under the RIC and enabled farm families to refinance existing debt from commercial lenders, to save on cashflow and give them time to restock and replant.
Mr Littleproud said the measure helped farmers from going bankrupt.
Member for Parkes, Jamie Chaffey said after attending the two-day forum in Gawler, it was abundantly clear the impact the drought was having on the community.
“I heard the messages loud and clear, with one organisation after the other saying that interest free loans, under these extreme circumstances, are immediately needed,” Mr Chaffey said.
“While the Minister stated the Government’s response to the (Regional Investment Corporation) review will be released late this year, for many, that may be too late.”
The Coalition established the RIC in 2018 to support farmers and help them grow and diversify.
Last month the Victorian Farmers Federation (VFF) welcomed the Federal Government announcement of ongoing certainty for the Regional Investment Corporation (RIC) beyond 2026, but said farmers urgently needed more meaningful support in the face of record drought.
Federation president, Brett Hosking said while the move was a positive step, it fell well-short of addressing the dire situation many farmers are facing as they approach the critical spring growing season.
“Of course, we support long overdue certainty for the RIC beyond 2026,” he said.
“This was recommended by the independent review more than a year ago and while we still do not have a full response to that review, it’s good to at least confirm the RIC will not cease to exist next year.
“But we must be honest, this is not a new initiative – it’s simply a decision not to shut down an existing source of drought support, and importantly, one that does not actually cost the government anything in the short term.
“Approval timeframes for loans are up to 118 days.
“The government can and must do better to get the support to where it’s needed as fast as possible.”
At that time, VFF also reiterated calls for far stronger measures to help support drought-stricken farmers and regional communities, including interest-free loans.
“What we’re seeking is meaningful support from these loans, such as interest-free periods or HECS-style repayments,” Mr Hosking said.
“That’s the sort of practical help that will make the difference for farmers who are seriously struggling right now.
“The RIC needs uplifting and this is a good first step, but we need to find better and more efficient ways to assist farmers when they need it most.”
