Low-cost loans for farm businesses

The Regional Investment Corporation (RIC) offers a variety of loans to support the long-term strength, resilience, and profitability of Australian farm businesses.

For many farmers across Australia, drought conditions have eased. But we are all too aware of the cyclical nature of drought and the need to prepare for the next one. And while climatic conditions may have temporarily improved, the cost of farm inputs such as fertiliser and fuel are rising. Part of managing through a drought is being prepared for when they hit, and RIC loans can be used to invest in your farm business, no matter what part of the drought cycle you are in.

The Regional Investment Corporation (RIC) offers a variety of loans to support the long-term strength, resilience, and profitability of Australian farm businesses.

Mr Paul Dowler, Acting Chief Executive Officer, said RIC loans have helped many farmers to get back on their feet.

“Throughout the drought, pandemic, and other farm business challenges, RIC loans have for some farmers meant the difference between being unable to continue and proceeding with their business plans,” said Mr Dowler.

“We help farm businesses manage through challenging times and return to viability.”

The full suite of RIC loans caters for new farm businesses, established farm businesses and farm-related small businesses supporting them.

· The Farm Investment Loan helps farm businesses to invest in a better future to make farm businesses stronger, more financially resilient and more profitable.

· For first time farmers, the AgriStarter Loan helps to buy or establish a farm business and support farm succession arrangements.

· The Drought Loan helps farm businesses prepare for, manage through and recover from drought.

· The AgBiz Drought Loan supports farm-related small businesses to take back control through drought.

The Drought, AgBiz Drought, Farm Investment and AgriStarter Loans offer a five-year interest-only period at the current variable interest rate of 2.31 per cent, followed by five years of principal and interest repayments.  To be eligible, farm and farming related businesses must show they are in financial need of a loan.

The Plantation Loan is also available to support new plantation development and replanting bushfire-damaged plantations for farms and businesses. It offers a current variable interest rate of 1.89% over 20 years.