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New drought loans available for primary producers

Apr 14, 2022 | Accounting, Business, Real News

Primary producers looking to prepare for future droughts or requiring help with related expenses during drought may be eligible for the new range of drought loans through QRIDA. These loans are designed to help producers undertake drought preparation activities and assist with carry-on finances of their enterprise. For more on new drought assistance available for primary producers, read on!

Emergency Drought Assistance Loans
The Emergency Drought Assistance Loan is an interest-free loan of up to $50,000 for primary producers to assist in meeting working capital expenses. This loan can be used for:

  • paying employee wages;
  • paying creditors;
  • paying rent and rates;
  • buying goods, including fuel, for carrying on the business.

Drought Ready and Recovery Finance Loan
The Drought Ready and Recovery Finance Loan offers up to $250,000 to help primary producers undertake drought ready and recovery activities and improve the drought resilience of their primary production business including:

  • improving on-farm water infrastructure;
  • implementing grain storage;
  • reasonable freight components to purchase and install equipment or infrastructure;
  • contractor costs or non-salaried employees’ costs directly associated with implementing the drought preparedness project;
  • removing unviable crops, plants or trees and purchasing and planting new seed, seedlings or trees; or
  • purchasing and vaccinating new stock or drenching new stock.

Producers do not need to be drought declared to be eligible for this assistance.

Drought Carry-on Finance Loan
Drought Carry-on Finance Loan is a concessional loan of up to $250,000 for primary producers to assist in meeting carry-on finance including: 

  • paying employee wages;
  • paying creditors;
  • paying rent and rates;
  • buying goods, including fuel, for carrying on the business

Other drought support available

Farm Management Grants offer primary producers a 50 per cent rebate on the cost of eligible professional advice up to a maximum $2,500 to produce a Farm Business Resilience Plan for their property.

Drought Preparedness Grants offer up to $50,000 as a co-contribution grant to assist primary producers undertake on-farm capital improvements that will improve the drought preparedness of their property as identified in their Farm Business Resilience Plan.

Sustainability Loans of up to $1.3 million are available to help primary producers to improve the sustainable infrastructure of their primary production enterprise. A Sustainability Loan may be used as the co-contribution to the Drought Preparedness Grant for implementation activities.

Help resources on how to complete your Farm Business Resilience Plan, including a template and how-to video can be found here.

The team in regional Queensland, helping yours 

Wherever you live in Queensland, the team of Regional Area Managers are ready to meet with you, whether it’s in their office or on-farm to discuss your business needs and answer your questions. Find your local Regional Area Manager today.

Assisting others

Is there someone you know who could benefit from the financial assistance available through QRIDA? If so, please share this blog post with them or alternatively, reach out to one of our friendly and knowledgeable team – we are more than happy to assist.