Acting Nationals Leader, Kevin Hogan, said Labor’s new drought hardship loan for farmers is not only too late but also doesn’t go far enough.
Mr Hogan said Labor has taken too long to announce drought support through the Regional Investment Corporation (RIC), especially after farmers have been experiencing drought and needed financial support much earlier.
“Labor’s drought hardship loan is an insult to struggling farmers, especially when decisions on cash flow needed to be made much earlier,” Mr Hogan said.
“Labor’s drought hardship loan only allows farmers to borrow up to a measly $250,000 and only if they have been affected by drought for at least 24 months and expect to be impacted for another season.
“The five-year loan is also not interest free, with farmers having repayments just deferred for the first two years.
“The lack of assistance has forced farmers to make decisions about de-stocking and paying higher prices for fodder this year, not in 2026.
“Labor’s scheme is nowhere near enough, after the Coalition introduced a two-year interest-free period in 2020 for loans up to $2 million for farmers experiencing hardship during the drought.
“The interest free 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, and for cashflow to pay for immediate needs such as fodder to keep breeding stock.
“It stopped a lot of farms from going bankrupt. It is clear rain and drought events are really hurting farmers, who desperately needed help six to 12 months ago.
“On top of that, spring has been dried in many parts of the country and cash flow has been tight for farmers across Australia.”
Mr Hogan added Labor’s new stream of loans for slow-onset ecological events, such as algal blooms, was announced on 20 August and still won’t be made available until next year.
“The industry has needed help since the algal bloom earlier this year, not within the next six months.
“It is also shameful that the Albanese Government has taken 18 months to respond to the legislative review of the RIC.”
