South Australian farmers battling ongoing drought conditions are beginning to receive financial relief, with the first loans officially approved under the State Government’s $200 million SA Drought Loan Scheme.
The program has already approved its first four low-interest loans for farming businesses in regions hardest hit by prolonged dry conditions.
The scheme offers eligible primary producers loans of up to $250,000, with a 10-year term and a two-year repayment holiday designed to ease immediate cashflow pressure.
While recent rain has brought some relief across parts of the state, many farming communities continue to face significant financial strain after years of difficult seasonal conditions.
Minister for Primary Industries and Regional Development Clare Scriven shared, “The most significant drought loans scheme in South Australian history has reached an important milestone.
“Funds are now flowing directly to drought-affected farming businesses in some of our hardest hit regions, providing much-needed financial assistance at a crucial time for the state’s agricultural sector.”
The loans are being processed quickly, with approvals currently taking place within five days once all required documentation is submitted.
The concessional interest rates are set at 50 per cent of the Commonwealth 10-year bond rate during the first two years of the loan, before shifting to the standard bond rate for the remaining eight years. Current rates remain below commercial lending rates and existing federal drought loan programs.
The new loan scheme sits alongside the State Government’s broader $97 million drought support package, which continues to deliver assistance across regional South Australia through a range of support measures.
The funding is designed to help farmers continue operating while recovering from drought impacts, rather than forcing difficult short-term decisions around staffing, production or future planning.
The program is being managed through the Department of Primary Industries and Regions and administered by the Queensland Rural and Industry Development Authority. Applications remain open until December 31st, 2026.
“The SA Drought Loan Scheme provides breathing room in the form of targeted assistance and helps farmers maintain operations as they recover from the impacts of drought,” shared Clare Scriven. “We will continue to monitor conditions closely and work with industry and regional communities to ensure support is reaching the people who need it most.”
Additional assistance also remains available through State and Federal Government support programs, including the Rural Financial Counselling Service.
