Drought Assistance Fund (DAF)

An interest-free loan of up to $100,000 to enable primary producers to implement systems and management practices that enhance the sustainability of their farm business.

The loan term is seven years and there are no repayments required in the first two years.

This loan will fund:

  • the transport of stock, fodder and water
  • genetic banking of breeding herds
  • installation of on-farm fodder and water infrastructure
  • activities that promote profitability and resilience as a result of the on-farm investment such as restocking, purchase of fencing materials and other on farm activities

CALL RFCSCR to discuss your eligibility and information needed with your application.

Are you eligible:

  • You are the owner or operator of the farm where the work is being carried out
  • As the owner you earn more than 50% of your gross income from the primary production enterprise.
  • Option for new entrants to apply
  • Gross off farm assets less than $5,000,000
  • Your farm business is being negatively impacted by drought conditions as assessed by the RAA taking into consideration your financial information and the Combined Drought Indicator ma
  • Your enterprise must be able to demonstrate capacity to repay the loan 


A copy of the RAA’s ‘choosing the right loan for your needs’ can be accessed at https://www.raa.nsw.gov.au/loans/choose-the-right-loan 

RIC Drought Loan

A low interest assisting farmers in need to prepare, manage or recover from drought. 

The Drought Loan can be used for:

  • refinance debt to achieve a lower interest rate
  • pay for operating expenses or capital improvements
  • access new debt for operating expenses and capital
  • Drought related expenses including preparedness, management and recovery

The benefits to you :

  • no application fees or ongoing fees or charges
  • repayments are tailored to suit the cash flow of your farm business
  • you can refinance or borrow up to $2 million or 50% of current eligible debt
  • variable, concessional interest rate
  • loan term is 10 years with the initial 5 years interest only followed by P&I for the remainder of the term of the loan

Your local Rural Financial Counsellor can assist with bank negotiations.

Are you eligible:

  • You must be an Australian citizen or permanent resident
  • You must contribute at least 75% of your labour to the farm business (in normal seasons)
  • You must earn at least 50% of your income from the farm business (in normal seasons)
  • Your farm business is in financial need but financially viable in the long term
  • You have capacity to secure and repay the loan


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