Nationals Leader David Littleproud is calling for Labor to bring back interest-free loans for farmers from the Regional Investment Corporation (RIC), 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,” Mr Littleproud said.
“The zero per cent 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.
“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 has written to Agriculture Minister Julie Collins, requesting support for the thousands of farmers dealing with floods and drought.
Mr Littleproud 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 2-year interest free period, then 3 years interest only, then 5 years principal and interest.
Mr Littleproud added one farmer he spoke to in Jundah last week has already lost $4 million worth of livestock, fences, and machinery.
“There have been many significant events across Australia including the floods in Western Queensland and the Mid-North coast of New South Wales, Cyclone Alfred, and the drought across Southern Australia.
“Our farmers are feeling significant pain, and it is now time to make this loan product available for the farmers affected.”
