As drought continues to impact farmers across the region, The Nationals’ Member for Euroa, Annabelle Cleeland, has expressed strong support for her federal counterparts calling for the return of interest-free loans for farmers.
The Nationals have urged the Federal Government to reinstate grants from the Regional Investment Corporation (RIC), enabling a $2 million loan with an initial 2-year interest-free period, followed by 3 years interest-only, and 5 years of principal and interest repayments.
Ms Cleeland said farmers across North-East and Central Victoria have been devastated by drought and the lack of adequate support from the state government.
“The effects of this drought and insufficient government assistance have been deeply felt in our rural towns,” Ms Cleeland said.
“Small measures like $5000 infrastructure grants and a temporary pause on emergency service tax increases are simply not enough to address the scale of the challenges our farmers are facing.
“This isn’t about handouts – it’s about fairness and providing farmers the support they need to survive and thrive.”
Ms Cleeland highlighted that the Nationals’ proposal has a proven track record in helping farmers during difficult times.
“In 2020, the Coalition introduced a two-year interest-free period for loans up to $2 million for farmers enduring drought hardship,” she said.
“This zero per cent interest rate applied to new and existing drought loans and allowed refinancing of commercial bank debt, giving farmers vital breathing space to manage cash flow, restock, and replant.
“It prevented many farms from going bankrupt.
“With recent droughts continuing to hurt farmers, it is critical the federal government revisits this RIC loan product immediately.”