Farm businesses impacted by the drought conditions can apply for a loan of $25,000 to help cover the cost of stockfeed, water, transportation, and other infrastructure that supports drought resilience. 

The loan is repayable over five years with no repayments for the first two years.

The Interest-Free Loans are administered by the Rural Business Development Corporation (RBDC) and are delivered through the Department of Primary Industries and Regional Development (DPIRD). 

• The Scheme offers an interest free loan of $25,000 to support eligible primary production businesses directly impacted by the current drought conditions.
• No interest will be charged on the outstanding loan amount during the 5-year term of the loan.
• Loans are to be secured by a caveat, registered against an acceptable real estate property.
• Loans are for a maximum term of five years, with no repayments for the first two years.  After the initial two years, the loan must be repaid during years three to five by 6 monthly payments or repaid in full earlier if the securing property is sold or at the request of the borrower.
• The availability of loans is subject to funds being available. The application closing date is 30 November 2024 or when funding is fully committed, whichever occurs first.

To qualify for an Interest-Free Loan, your farm business must demonstrate prospects of ongoing financial viability within the loan term. This means your business must generate sufficient net profit after covering variable and fixed expenses. Additionally, you must show the capacity to repay and secure the loan.

To be eligible for a loan, the applicant must:

• Be operating a farm business, on a property within Western Australia (Note – a farm business is a primary production business that excludes Aquaculture, Forestry and Logging, Fishing, Hunting and Trapping, and Support Services).
• Have an ABN since at least 1 July 2021 and be registered for GST. 
• Operate as a sole trader, partnership, trust or private company.
• Have owners or beneficiaries who, collectively, earn more than 50% of their total income from primary production in a normal year. 
• At least one member of the applicant business spends at least 50% of their time on the farm business 
• Have gross farm income between $200,000 and $2.0 million in a normal year.
• The applicant must have an equity ratio between 50% and 70%, and no greater than $4 million based on their Statement of Assets & Liabilities
• Off-farm assets to be no greater than $2.0 million (excluding assets in a complying superannuation fund)
• The applicant has not held funds in a Farm Management Deposit account since 1 January 2024. 
• Demonstrate they have incurred direct costs of at least $25,000 on expenditure directly due to the impact of this dry season such as stockfeed and its transportation, water including cartage, transportation of livestock, or other drought preparedness measures.

• Phone: 08 9368 3082
• Email: ruralbusiness.developmentunit@dpird.wa.gov.au