Farmers invited to apply for drought concessional loans

Drought is one of the biggest threats to agricultural operations in Australia, which is why farmers in two states are being invited to apply for financial assistance.

Queensland and South Australia are offering drought concessional loans to those who have been impacted by extremely dry conditions. Although crop insurance can go some way towards recovering some losses, these loans will help provide extra financial support wherever it is needed.

The 2015-16 round of the scheme will provide $10 million in lending for South Australian farmers, and $15 million for those based in Queensland.

Barnaby Joyce, minister for agriculture and water resources, said the loans would help farmers restructure any existing debt they might have. In addition, the money may assist them in being more prepared for dealing with future drought conditions, while implementing recovery activities.

He acknowledged that in Queensland alone, as much as 80 per cent of the state is suffering from drought. As a result, farmers need whatever practical support they can find in order to recover once the conditions begin to improve.

Mr Joyce also referred to the Agricultural Competitiveness White Paper, which outlines a number of strategies needed in the sector to ensure it is able to thrive.

"Investing in better drought preparedness and risk management is an investment in our nation's future prosperity and the stability of our rural communities," commented Mr Joyce.

The white paper suggested that additional funding should be provided to give family support in drought-affected regions. This has already began, as has ensuring extra drought coordinators are accessible to those hardest hit by the difficult conditions.

Furthermore, an extra $3.3 million has been invested in a project carried out by the Bureau of Meteorology to give farmers better access to localised and more accurate forecasts.

Drought is just one of the situations that could impact agricultural businesses. Taking out crop insurance is one way of limiting the financial impact of extremely dry land, which can be extremely costly and time consuming to rectify.