Are you eligible for a RIC loan?

When farmers Martin and Helen Kinsela were struggling with cash flow and a high cost of capital, they turned to an Australian Government specialist finance provider, RIC (Regional Investment Corporation) for a low interest loan.

Having suffered a loss in production due to drought, they were eligible to refinance a portion of their commercial agribusiness debt to allow them to purchase new cattle yards and diversify into hay making, hay sales, transport and trading.

“Our RIC loan meant we were able to invest sooner, five years or more earlier,” the Kinselas said. “It means we haven’t been hampered by cash flow all the time.” 

RIC Chief Executive Officer, John Howard said a simple, 30-second quiz would help farmers understand the eligibility criteria before assessment, so customers don’t jump into the application form without meeting key criteria.

Mr Howard said there was $170 million in loan funding remaining in FY 2024 for eligible farm businesses, and over $3.2 billion had been issued across 3000 loans in the last five years.

“The loans are a low-interest option for farmers to manage through, recover from and prepare for future drought events or other unforeseen business impacts causing a severe financial disruption,” he said.

“Since RIC started in July 2018, the total interest savings from RIC farm loans directly to farmers is estimated to be around $270 million.”

Take the quiz to discover if a RIC loan is right for you too

RIC’s Drought Loan can be used to refinance debt, pay bills, pay for fodder or water for livestock or produce, as well as recovery activities like replanting and restocking. 

To be eligible, farmers must have experienced drought in the past five years and have had two years of financial downturn in that period. Find out more

Drought Loan terms allow farmers to borrow up to $2 million over a 10-year term, with the first five years as interest only followed by five years principal and interest.   

Queensland beef cattle producers Tom and Antoinette Archer used their Drought Loan to assist their cash flow to improve soil quality, address bare ground with low plant species and prevent high water runoff, steadily building carbon stored in their soil to improve drought resilience.
“We have been able to increase the carrying capacity on parts of the property from eight stock days a hectare to more than 20,” the Archers said. 
“If you’re holding more water in the soil, drought affects you more slowly so in the event of another drought, we’re hoping we might go into drought more slowly and recover a bit quicker.”
Tasmanian beef cattle and outdoor vegetable grower Sam Elphinstone used his Drought Loan to improve water storage capacity by building two dams and enlarging an existing one - increasing his water capacity by 70%. 
“Now I can get a lot of volume and good crops that need a lot of water,” he said.

The loan program has had a significant positive impact with a survey of 500 loan recipients revealing 88% found their RIC loan has made drought, natural disaster or external disruption recovery easier and 83% stating their RIC loan enabled them to improve their drought resilience.