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David Littleproud urges Labor to deliver interest-free loans as farmers voice urgent drought forum concerns

Nationals leader David Littleproud says the Drought Forum reinforced urgent calls for interest-free farm loans, urging Labor to act swiftly as farmers face worsening hardship, particularly in South Australia's dairy industry.

By news@gippsland - 10th September 2025 - Back to News

Leader of The Nationals David Littleproud said the Drought Forum has only reiterated the need to provide farmers with interest free loans, which the former Coalition government previously introduced. "Farmers at the Drought Forum are crying out for action and outcomes, not just more talkfests," Mr Littleproud said.

Coalition introduced two-year interest-free RIC loans, helping drought-affected farmers refinance debts, ease cash flow, restock, and replant

Drought relief demands

Mr Littleproud said, "The drought is impacting farmers, especially the dairy industry. Australian Dairy Farmers is reiterating our calls for interest free loans for a minimum of two years. Why is Labor hosting drought forums but then not answering their request?"

In 2020 the Coalition introduced a two-year interest-free period for loans up to $2 million through the Regional Investment Corporation (RIC) for farmers experiencing drought hardship. The zero per cent interest rate applied to new and existing drought loans under the RIC and enabled farm families to refinance existing debt from commercial lenders, to save on cashflow and give them time to restock and replant. The measure helped farmers from going bankrupt.

RIC review delay

Member for Parkes Jamie Chaffey said after attending the two-day forum in Gawler, it was made abundantly clear the impact the drought is having on South Australia and other parts of the community. "I heard the messages loud and clear, with one organisation after the other saying that interest free loans, under these extreme circumstances, are immediately needed."

"While the Minister stated the government's response to the RIC review will be released late this year, for many, that may be too late," Mr Chaffey said. The Coalition established the RIC in 2018 to support farmers and help them grow and diversify. It is important legacy funding, to support farmers through drought hardship.

Pictures from South Gippsland Dairy & Farming Expo Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com

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