Drought Loans

Drought Loans provide loans for farm businesses to help them prepare for, manage through and recover from drought.
Close date: 30 Jun 2026 12:00 AM AEST.
Application detail:

Applications may be made at any time.

What do you get?

Loans of up to $2 million.

Who is this for?

Farm businesses.


Drought Loans provide farm businesses with loans to help them prepare for, manage through and recover from drought.

The loans may be used to:

  • prepare for, manage through or recover from drought
  • refinance existing debt
  • pay for operating expenses or capital
  • enhance productivity
  • fund drought-related activities.

Loans of up to $2 million over a period of 10 years are available. Repayments will be tailored to the cash flow of the business and are interest only over the first five years, then principal and interest for the remaining five years. After 10 years, any remaining balance on the loan can be refinanced with a commercial lender.

What are the eligibility criteria?

To be eligible, you must:

  • be an Australian citizen or permanent resident
  • contribute at least 75% of your labour to the farm business (under normal circumstances)
  • earn at least 50% of your income from the farm business (under normal circumstances)
  • have a drought management plan
  • provide security for the loan
  • secure the support of your commercial lender for the proposed loan.

Additionally, the farm business you are running must:

  • be located in an eligible area of Australia
  • have existing commercial debt
  • be registered for tax purposes in Australia with an Australian Business Number (ABN) and be registered for GST
  • be in financial need of a loan
  • have the capacity to repay the loan
  • operate as a sole trader, trust, partnership or private company
  • be in the agriculture, horticulture, pastoral, apiculture, or aquaculture industry
  • be solvent.

Find out more about the eligibility criteria at Drought Loans.

How do you apply?

You must include a business cash flow budget and a drought management plan with your application. If you need help to compile your documents and complete your application, contact an advisor from your local Rural Financial Counselling Service.

Find out more about how to apply at Drought Loans.