Community
21 August, 2025
Pleas for interest-free farm loans
SOUTH west Victorian farmers recently met with members of the opposition to continue pleas for the reintroduction of a program designed to support primary producers through drought conditions.
Member for Wannon Dan Tehan, Leader and Shadow Minister for Agriculture David Littleproud and Victorian Nationals Senator Bridget McKenzie visited a Tesbury farm to speak about ongoing drought conditions.
The trio met with Corangamite Shire Council Cooriemungle Ward councillor Jamie Vogels and called on the Federal Government to reinstate interest-free drought loans for Victorian farmers.
In 2020 the Coalition introduced a two-year interest-free period for loans up to $2 million for farmers experiencing drought hardship.
The zero per cent interest rate applied to new and existing drought loans under the Regional Investment Corporation (RIC) enabled farm families to refinance existing debt from commercial lenders to save on cashflow and give them breathing space to restock and replant.
Cr Vogels said the visit was a “big difference” from a survey conducted from an office desk.
“It’s good to get people to come down into the area, especially politicians who turn up onsite and deal with people at the coalface and see what’s happening on the ground,” he said.
“This is where you see the real things happening and talk to the real people about the issues.”
Mr Tehan said many local farmers have found the financial strain of this drought to be unbearable, needing to truck in feed and water and destock animals which have taken generations to breed.
“Local support agencies have been doing outstanding work in very trying conditions to assist farmers in managing through this severe drought, but our farmers need more help and more support on the ground here and now,” he said.
“The government needs to act and act immediately.”
Chris Place, whose farm hosted Mr Tehan, Mr Littleproud and Ms McKenzie, said farmers were being forced to reduce their spending in town and limit the bills they pay in order to keep their farms going.
“Towns are going to suffer,” he said.
“Just having some interest rate relief will allow farmers to put a little bit of money back on their bills and into the community.
“We’ve had pastures die and a lot of people laid down pastures and it never rained – they’ve had to resow the farm, and it costs in excess of $100 an acre just for seed.
“We haven’t had anywhere near enough rain – we’ve had no run-off and I’m quite concerned we’re not going to be able to grow silage this year.
“Out in the fodder and crop growing areas, it doesn’t look like a good season either.”
Ms McKenzie said the Federal and State Labor Governments had been making life harder for Victorian farmers at a time they most need support.
“Unfortunately, this drought is flying under the radar of many people in the capital cities and apparently the Federal Government in Canberra,” she said.
“Applying this measure will keep farmers from going bankrupt.
“Almost 400 Victorian farmers have been supported by RIC loans since it was established in 2018 but the Federal Government has refused to guarantee that funding for the RIC will continue beyond June 2026.
“Minister for Agriculture, Fisheries and Forestry Julie Collins has failed to respond to the review of the RIC and did not once mention the crippling drought affecting Victorian farmers during the first two sitting weeks of Parliament.
“As if drought wasn’t enough, our farmers have had to deal with the financial threat of Victorian Labor’s emergency services tax.”
Mr Littleproud said Victoria’s drought had been devastating for many farmers and regional communities.
“While recent rains have provided some optimism for new growth and relief from drought in the spring, Victorian farmers will continue to face months of severe feed shortages,” he said.
“Farmers have endured record drought conditions in some regions of Victoria which have been beyond their previous experience, placing significant pressure on farm budgets.
“Unfortunately, the Federal Government has failed to re-instate measures which successfully assisted farmers to hold onto their farms in previous droughts.”
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