In a significant move to support South Australian grain producers weathering the effects of prolonged dry conditions, Premier Peter Malinauskas recently announced a $200 million drought loan package.
The state-based initiative has been welcomed by Grain Producers South Australia (GPSA).
The loan program, which mirrors a proposal put forward by GPSA, offers up to $250,000 per farm with a 10-year repayment term.
This working capital loan package is designed to help grain producers manage their cash flow, maintain productivity, and position themselves to recover when better seasons return.
GPSA chair John Gladigau praised the announcement.
“This is a strong and sensible response to the pressures grain producers are facing in some parts of South Australia from prolonged dry seasons,” he said.
“The feedback we received from grain producers is that cash flow for those farmers who have been battling is critical.”
The key advantage of this state-based drought loan program is its focus on providing immediate cash flow support, in contrast to the higher interest rates and lengthy application processes associated with the current federal government drought loan arrangements.
“A properly structured loan can make the difference between a farm business riding out a dry period or being forced into long-term damage,” Mr Gladigau said.
GPSA is working closely with the state government to ensure the loan eligibility criteria reflect on-the-ground conditions, minimize bureaucratic hurdles, and deliver support to farmers as quickly as possible.
While the initial focus is on targeted drought-affected areas, the organization is advocating for the inclusion of grain producers in other regions that may also meet the criteria.
“Grain producers are quiet achievers,” he said.
“They don’t seek the spotlight, but they do need policy settings that understand the realities of farming through tough seasons beyond their control. This announcement shows that message has been heard.”
Grain and livestock producers in the Murray Mallee, Riverland, and Upper North regions can register their interest in the loan scheme through the government’s website.
Producers outside these initial target areas are encouraged to reach out to GPSA, as the organisation continues to work with the state government to expand the program’s reach.
