Minister for Agriculture Julie Collins in SA today, flanked by SA Primary Industries Minister Clare Scriven.

PRESSURE on the Albanese Labor Government to provide interest-free loan, freight subsidies and other direct drought support will continue despite a $2 million boost the Rural Financial Counselling Service announced today.

Prime Minister Anthony Albanese and Minister for Agriculture, Fisheries and Forestry Julie Collins, en route to a Perth Cabinet meeting, announced the $2 million RFCS boost during a stopover at a drought-affected South Australian farm today.

The Federal Government said the additional funding for the RFCS will enable this expert service to employ more financial counsellors, delivering more support to people on the ground, and is in addition to the $800,000 committed last week for RFCS providers in South Australia and Victoria.

The government said demand for financial counselling is growing in a number of regions because of extreme weather. Extra resources will help RFCS service providers deliver better continuity of client services with more counsellors and shorter waiting times in areas with high demand, it said. The Albanese Labor Government will also convene the 2025 National Drought Forum at Gawler, South Australia.

Ms Collins said the government knew many farmers have been dealing with the fallout of severe weather patterns – whether that’s dry conditions in South Australia and Victoria, or flooding rains to our north.

“That’s why we’re increasing the support available through the Rural Financial Counselling Service, a critical initiative that gives farmers support when they need it.

“Farmers on the ground know the land the best, which is why we’re bringing the National Drought Forum to South Australia which is managing the real consequences of these harsh conditions,” she said.

“Our government’s investment of $1 billion rural support and drought resilience funding has helped farmers to prepare, adapt and respond to drought along with other hardships and issues our agriculture sector faces.

“The forum will be an important opportunity for a range of stakeholders to gather and discuss how we can continue to address drought both now and into the future collectively.”

Calls for interest-free loans and other support continue

While recognising the need for rural financial counselling services, Livestock SA chair Gillian Fennell said the body was still asking for no-interest loans, assistance with transporting fodder and livestock, and a review of the asset limit for farmers to access farm household assistance. To get Farm Household Allowance producers need to meet an assets test, and combined personal and farm assets of an individual farmers or couple must be below $5.5 million net.

“It (the asset limit) is not reflective of modern farming practices and operations,” Ms Fennell said.

She said the loan, freight and asset limit assistance is a higher priority for farmers who are doing it tough.

Ms Fennell said Livestock SA had a very brief roundtable with Ms Collins last week. Although the $2 million RFCS boost showed Ms Collins showed had listened “getting what we asked for within three days I think it probably a bit much to expect from government,” she said.

“But I would like to think that they are still open to discussions about meaningful support that will help our members.”

NFF to continue to call for loan support

The National Farmers Foundation welcome the $2 million RFCS funding and forum announcement, and said the SA visit was a meaningful show of support for farmers and regional communities doing it tough.

NFF president David Jochinke joined the PM on his visit today and said it was a valuable opportunity to hear from those on the ground about the scale of the challenge and the support needed to get through it.

“The conditions have to be seen to be believed, and it means a great deal to these communities to have the PM shine a spotlight on what’s happening.

“Things are really tough right now in large parts of South Australia and Victoria, as well as areas in Tasmania, New South Wales and Western Australia,” Mr Jochinke said.

“While it’s important we acknowledge how hard things are, and that’s what this visit helps to do, we also need to make sure the right supports are in place to help people through.

“We thank Prime Minister Anthony Albanese and Minister Julie Collins for showing up and listening,” he said.

“We hope the visit will help them see the urgency of the situation and the need for action.”

However, the NFF said it would continue to call for immediate actions from the Federal Government including:

Extending the Regional Investment Corporation’s loan capacity past 30 June 2026;

Responding to the independent review of the Regional Investment Corporation;

Providing additional mental health support for farmers and regional communities.

“We also have to acknowledge that with this drought traversing multiple states – we need strong coordination across all levels of government to ensure support flows seamlessly to farmers.”

Mr Jochinke said it was important to remember the drought was not just impacting farmers, but entire communities.

Littleproud calls for interest-free loans

Leader of The Nationals David Littleproud also called for Labor to bring back interest-free loans from the Regional Investment Corporation for farmers impacted by Australia’s drought and floods.

Mr Littleproud said farmers across Australia have been simultaneously devastated by recent floods as well as drought.

“In 2020, the Coalition introduced a two-year interest-free period for loans up to $2 million for farmers experiencing hardship during the drought.

“The zero percent interest rate applied to new and existing drought loans and to refinance existing debt from a farmer’s commercial bank, to give farmers some breathing space, saving them cashflow and giving them time to restock and replant,” he said.

“It stopped a lot of farms from going bankrupt.

“It is clear recent rain and drought events are really hurting farmers, which is why I am calling on Labor to revisit this RIC loan product once again.”

Mr Littleproud said he has written to Ms Collins, requesting support for the thousands of farmers dealing with floods and drought.

He said current assistance doesn’t go far enough and farmers would get much-needed reprieve by having access to a $2 million loan with an initial two-year interest free period, then three years interest only, then five years principal and interest.

“Our farmers are feeling significant pain, and it is now time to make this loan product available for the farmers affected.”