The RIC loan types

RIC offers several loans. Each one has its own guidelines, so the first job is to find the one that matches why you need the money.

The three main farm loans

These three each lend up to $2 million over 10 years, with the first 5 years interest only, then principal and interest.

• Drought Loan: to prepare for, manage through and recover from drought. RIC lists uses such as water efficiency, building feed reserves, paying bills, buying fodder, carting water, and restocking or replanting when the season allows. It can also refinance some existing debt. You need a drought management plan.
• AgriStarter Loan: for people buying, setting up or developing their first farm business (First Farmer), and for families going through succession (handing the farm to the next generation).
• Farm Investment Loan: for farm businesses recovering from severe business disruption outside their control, and preparing for future disruption. RIC looks at whether the impact lasts around two years.

The smaller loans

• AgBiz Drought Loan: up to $500,000 for small businesses that aren't farms but supply goods or services to farms in drought-affected areas, such as a stock carrier. The business must have fewer than 20 employees, not counting casuals.
• Drought Hardship Loan: up to $250,000 over 5 years for running costs in a long drought. Your farm must have been in drought for at least 24 months, and be expected to be hit for at least the next 12. There's nothing to pay for the first 2 years, but interest builds up and is repaid from year 3. It can't be used to refinance, and you need a drought management plan.

RIC also has a Marine Recovery Loan for some South Australian fishing and aquaculture businesses, which few farm readers will need.

The interest rate

All RIC loans use a variable rate set by the Australian Government. RIC announced the rate would be 5.71% from 1 August 2026, up from 5.18%. It's reviewed every six months, so check RIC's site for the current rate. Some RIC pages may still show an older rate.

Which one fits?

Ask yourself why you need the money. Drought? Look at the Drought Loan, or the Drought Hardship Loan if it's been dry for two years or more. First farm or succession? AgriStarter. A big hit from something like a disaster or a market closing? Farm Investment.

If you're not sure, ring RIC on 1800 875 675. It would rather talk it through than have you guess.