The State Government package included $2 million in hardship grants and $4 million in interest-free loans for farmers impacted by drought conditions.
Hardship Support Grant
Applications for the $5,000 hardship grant are now closed as funding has been fully committed.
Interest-Free Loans
WA farm businesses can apply for $25,000 to cover the costs of stockfeed, water and transportation. The funds can also be used to establish feed silos, water tanks and improved irrigation systems or any other infrastructure that supports drought resilience.
The loan is repayable over 5 years with no repayments for the first 2 years. The availability of loans is subject to funds being available. Applications close 30 November 2024 (or when funds are exhausted). For more information and to apply, visit Interest-Free Loans.
Up to $100,000 can also be provided for each off-farm community water supply project, developed by local government or community groups on a co-contribution basis.
Other financial support for WA farmers to assist in dry season response includes:
- Drought Loans - for eligible farm businesses are available from the Australian Government farm business lender, RIC (Regional Investment Corporation). RIC provides low-interest Drought Loans for farm businesses to help them prepare for, manage through and recover from drought. Farm business loans of up to $2 million are available. Farm businesses are encouraged to learn more about eligibility and lending criteria before applying.
- AgBiz Drought Loans - for eligible small businesses directly linked to the farming sector are available from the Australian Government farm business lender, RIC (Regional Investment Corporation). Low interest loans of up to $500,000 may help eligible farm-related businesses in drought affected areas manage their business during a drought. Eligibility and lending criteria apply to all RIC loans.
- The Australian Government’s Farm Management Deposits (FMD) Scheme is a risk management and drought preparedness measure which allows eligible primary producers to set aside pre-tax income which can be drawn upon when required. Income deposited into an FMD is tax deductible in the financial year the deposit is made. It becomes taxable income in the financial year in which it is withdrawn. FMDs are held by authorised deposit taking institutions and attract market rates of interest. Primary producers can access previously lodged FMDs to supplement business cash flow. This may include accessing deposits held for less than 12 months, for eligible drought affected properties (without penalty).
- The Farm Household Allowance Program, which provides farming families experiencing significant financial hardship with access to the Centrelink income support system, contingent on the farm business committing to improved planning and training for long-term financial sustainability.
