“The message is being heard” – GPSA Responds to $200m Drought Loan Package Announcement
Grain Producers South Australia (GPSA) has welcomed the announcement by the Premier of South Australia for the establishment of a $200 million drought loan package, to help those most in need.
The state-based loan largely mirrors a proposal put forward by GPSA providing up to $250,000 per farm with a 10-year repayment term to support grain producers facing prolonged dry conditions.
The working capital loan package, announced at the South Australian Grain Industry Awards at Adelaide Oval last night, reflects sustained advocacy over many months by GPSA for a practical support mechanism that helps drought affected producers manage cashflow, while remaining productive and viable.
GPSA Chair John Gladigau said the announcement was a significant step forward for South Australian grain producers who have endured consecutive tough seasons.
“This is a strong and sensible response to the pressures grain producers are facing in some parts of South Australia from prolonged dry seasons,” Mr Gladigau said.
“The feedback we received from grain producers is that cashflow for those farmers who have been battling is critical.
“These working capital loans are about giving farmers breathing room — to keep businesses operating, maintain their workforce, and be in a position to recover when the better season comes.”
Mr Gladigau said the key challenges with the current Federal Government drought loan arrangements for South Australian farmers ahead of seeding are the relatively high interest rates and the lengthy timeframes required to apply for and access the support.
“There’s proven systems in place for state-based drought support loans in Queensland and New South Wales and that’s what we based our proposal to the State Government on,” he said.
“The announcement at the South Australian Grain Industry Awards in front of a packed Adelaide Oval audience of 430 people demonstrates the importance of our sector.
“We’ve been clear that drought support needs to focus on cashflow support, ahead of short-term assistance and that’s what this loan package delivers.
“A properly structured loan can make the difference between a farm business riding out a dry period or being forced into long-term damage.”
GPSA said it is working closely with the State Government on eligibility criteria to ensure the loans are accessible, fair and targeted to genuine drought-affected producers with Expressions of Interest already open.
“The detail will matter,” Mr Gladigau said.
“We are working closely with the State Government to ensure eligibility settings reflect on-ground conditions, minimise red tape and deliver support to farmers as quickly as possible. While the initial focus is on targeted drought-affected areas, we recognise there are grain producers in other regions who may also meet the criteria, and we will continue working with the Government so this is appropriately addressed.”
GPSA also acknowledged the announcement as an important recognition of the broader economic and community role played by grain producers across regional South Australia.
“Grain producers are quiet achievers. They don’t seek the spotlight, but they do need policy settings that understand the realities of farming through tough seasons beyond their control,” Mr Gladigau said.
“This announcement shows that message has been heard.”
To register an expression of interest as a grain or livestock producer in the Murray Mallee, Riverland and Upper North, click here.
If you are outside these regions but meet the loan criteria, you can email [email protected]
