Farm loans, grants and drought support in Australia
Every kind of farm finance explained in plain words, from overdrafts and equipment loans to RIC loans, drought support and state government schemes. Each guide says who a loan suits, how it is repaid and where to check the current terms.
- What loans are available to farmers in Australia
Farmers in Australia mostly borrow through term loans, overdrafts and seasonal facilities, equipment finance, livestock finance and land loans, with RIC and state loans for those who qualify. The rule of thumb is to match the loan to the job: short-term money for costs that come back within the year, and longer loans for land and gear. Lenders mainly look at whether the farm can make the repayments, what security backs the loan and how you have run your accounts.
10 minute read - Farm overdrafts and seasonal finance explained
An overdraft and a seasonal facility both lend you the cash to run the farm between paying costs and getting paid. You pay interest on what you use, and the lender reviews the limit, usually each year. Size the limit from a monthly cashflow: find the lowest balance of the year, add a margin for a late or poor sale, and check the account comes back up after sales.
9 minute read - Farm equipment finance: chattel mortgage, lease and hire purchase
Most farm machinery is financed by a chattel mortgage, hire purchase or a lease. The main difference is who owns the gear during the contract, which also changes the GST and tax treatment, so ask your accountant. Compare the rate, fees, balloon and early payout cost of each quote, and keep the term within the working life of the machine.
9 minute read - Livestock finance: how farmers fund buying stock
Farmers fund stock purchases from an overdraft or seasonal facility, a term loan, dedicated livestock finance from a bank or stock agent, or, if eligible, an RIC loan. Lenders that take the stock as security are exposed to price falls, so they look hard at your plan to sell. Work out the trading margin with interest included, then test it at a lower sale price before you buy.
9 minute read - RIC loans explained: drought, farm investment and AgriStarter
The Regional Investment Corporation (RIC) is an Australian Government lender that offers low-interest farm loans alongside your bank. As at October 2026 it lists six loans, from the $2 million AgriStarter, Farm Investment and Drought Loans to smaller drought and recovery loans, all at a 5.71% variable rate from 1 August 2026. You need your bank's support, at least half your debt must stay with a commercial lender, and you must show financial need and a viable business.
10 minute read - Drought support for farmers: loans, payments and help
Federal drought help is there all year: RIC Drought and Drought Hardship Loans, the Farm Household Allowance for families in hardship, and the free Rural Financial Counselling Service. State help is patchier. As at October 2026, NSW, Queensland and South Australia have drought loans or grants open, Victoria has one household payment open, while WA's dry season package has closed. Start with a feed budget, talk to the bank early, and ring a rural financial counsellor before the pressure builds.
10 minute read - State government farm loans and grants in Australia
Queensland and Tasmania run standing farm loan schemes, through QRIDA's First Start and Sustainability Loans and Tasmania's AgriGrowth Loan Scheme. NSW and South Australia have drought loans open as at October 2026, while Victoria and WA have no standing state farm loan open. Disaster recovery loans and grants open after a declared event and close on set dates, so always check the agency page before you apply.
10 minute read - Bank covenants on farm loans and what a breach means
Covenants are the promises in your loan agreement, such as keeping interest cover above a set level, keeping debt under a share of the land value and sending figures on time. A breach doesn't automatically mean the bank calls in the loan, but it gives the bank rights it didn't have before. Test your numbers against each covenant before the bank does, and if a breach is coming, tell the bank early.
7 minute read - How to read your bank's annual review letter
An annual review letter asks for the figures the bank needs to decide whether your facilities carry on as they are. Read it for three things: the documents wanted, the date they're due and any facility that is expiring or changing. If you can't meet the date, ring the bank manager before it passes and agree a new one in writing.
6 minute read - Buying the neighbour's block: the numbers a lender wants
A lender works from the bank's valuation, not the price you pay, so any gap between the two comes out of your own equity. It then checks whether the combined farm can service the extra debt, using a budget for both blocks together. Work out the deposit, the LVR and the new interest cover before you bid, and add purchase costs such as transfer duty after confirming them with your solicitor and accountant.
7 minute read
General information only, written for Australian farmers and checked against official sources as at October 2026. Government schemes open and close, so check the agency's page before you apply.
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