Australian Government farm business lender, Regional Investment Corporation (RIC) is hosting a free Farm Investment Loan (FIL) webinar on 25 October 2023 for farmers, advisers and agriculture industry groups to learn more about how low-cost farm business loans can be used to support rebuilding and recovery after a severe financial impact.

RIC Chief Executive Officer, John Howard said the FIL is for farmers who have had their business plans severely disrupted by factors outside their control causing a financial downturn.

“The Farm Investment Loan recognises that often unexpected business shocks outside a farmer’s control can play havoc with financial plans over time, like being forced to sell stock or buying feed and water. RIC loans can provide some financial relief with a low variable interest rate currently at 4.52 per cent and interest-only terms for the first five years of their loan to get back on their feet.

“To be eligible for a low-cost RIC loan, farmers need to show their underlying business is solid, but need help to improve cash flow following an event like drought or a natural disaster,” said Mr Howard.

“The webinar comes at a time when many farmers will be considering how they will manage through the predicted dry season. Some farmers may not realise the Farm Investment Loan can be used for drought management, recovery and to prepare their business for future events so we’d encourage anyone who wants to learn more to register online via our RIC.gov.au website.”

Dairy farmer Brodie Game from Blackjack Holsteins in the Bega Valley with her son. Brodie and her husband Kevin will talk to webinar participants about their RIC Farm Investment Loan.

Webinar participants will hear how RIC customers, Bega Valley dairy farmers Brodie and Kevin Game, used their Farm Investment Loan to upgrade irrigation for on-farm feed production improvements after experiencing consecutive impacts from drought, bushfires and floods.

“The interest-only period for the first five years of the 10-year loan term was very enticing because it gave us more time to install the pivot and pay the money back once it made money for us,” said Ms Game.

“Every disaster has changed our management of our business because it’s not an ‘if’ these things will happen again, it’s a ‘when’ and there are different levers we can pull to get through it.”

The Farm Investment Loan is for preparation, management and recovery following a significant financial impact outside a farmer’s control. It could be due to drought, natural disasters, pest or disease outbreaks, unexpected market closures or other significant restrictions. It is also for investing in a farm business to encourage diversity and new market opportunities.