Farmer News
14 August, 2025
Tehan joins calls for interest-free loans
WANNON MP Dan Tehan has joined senior opposition figures in calling on the federal government to reinstate interest-free drought loans for Victorian farmers.
Mr Tehan recently joined Nationals Leader and Shadow Minister for Agriculture David Littleproud and Victorian senator Bridge McKenzie in calling for the reinstatement of the loans to support producers in their drought recovery.
He said Victoria’s drought had been devastating for many farmers and regional communities.
“Local support agencies have been doing outstanding work in very trying conditions to assist farmers manage through this severe drought,” he said.
“Our farmers need more help and more support on the ground here and now.
“The government needs to act and act immediately.”
Mr Littleproud said the Coalition in 2020 had 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 enabled farm families to refinance existing debt from commercial lenders to save on cashflow and give them breathing space to restock and replant.
“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,” Mr Littleproud 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 Albanese Labor Government has failed to re-instate measures which successfully assisted farmers to hold onto their farms in previous droughts.”
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 Albanese Government in Canberra,” she said.
“Applying this measure will keep farmers from going bankrupt and it’s time the government made this product available again.
“Almost 400 Victorian farmers have been supported by Regional Investment Corporation loans since it was established in 2018 but the Albanese Government has refused to guarantee that funding for the RIC will continue beyond June 2026.
“Minister Collins has failed to respond to the review of the Regional Investment Corporation and did not once mention the crippling drought affecting Victorian, South Australian and New South Wales 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 as well as massive fines for trying to protect their farms from having transmission towers imposed on them.”