Talk to the bank early and find support

Two calls make a big difference in a dry year: one to your bank and one to the support services. Both work better early.

Ring the bank before you need to

Banks deal with dry seasons all the time. What they don't like is surprises. If you ring after you've gone over your limit, the conversation starts on the back foot. If you ring three months before, with a plan, it's a different conversation.

Take three things:

1. Your feed budget showing days of feed and the gap.
2. A monthly cashflow showing when the account hits its low point.
3. Your plan, including trigger dates for selling or agisting.

Ask what options the bank has, such as a temporary limit increase or changing when repayments fall. We can't promise what any bank will do, but a clear plan gives it something to say yes to. If you need to explain hardship in writing, our hardship letter template is a starting point.

Support that exists

Programs open and close often, so check each agency's page before you apply.

• Rural Financial Counselling Service (RFCS): free, confidential help for farmers in or at risk of financial hardship. Counsellors help with budgets and cashflows, an action plan and talking to lenders. Ring 1300 771 741 to reach your nearest office.
• RIC Drought Loan: the Regional Investment Corporation, a government lender, offers up to $2 million over 10 years, with the first 5 years interest only (you pay just the interest). You need your bank's support and a drought management plan. Our RIC loans guide explains it.
• RIC Drought Hardship Loan: up to $250,000 over 5 years for farms that have been in drought for at least 24 months. Nothing is paid for the first 2 years, but interest builds up.
• Farm Household Allowance: a fortnightly payment for farmers and their partners in financial hardship, for any reason, with a case officer and an activity supplement of up to $10,000.
• State schemes: for example, the NSW Rural Assistance Authority's Drought Ready and Resilient Fund Loan lends up to $500,000 until funding runs out. See state government farm loans for other states.

Our drought support guide has more detail.

Look after the people

Dry years are hard on families. If it's getting heavy, ring Lifeline on 13 11 14. The RFCS is also a good first call. It's free and it's there for exactly this.