Drought Assistance Concessional Loans

​​​​​​​Drought Assistance Concessional Loans are now open for applications. Please check with your relevant state delivery agency for further details.


Drought Assistance Concessional Loans aim to help farm businesses experiencing financial difficulty due to the effects of drought. A Drought Assistance Concessional Loan can be used by a farm business so it can operate during a drought, recover when the drought breaks and prepare for future droughts.

Loans are available for a maximum of 10 years at a variable concessional interest rate of 2.47 per cent (as at 1 February 2017).

Loan amounts are for up to a maximum of $1 million with conditions applying.

Drought Assistance Concessional Loans can be used for a combination of the following purposes:

  • debt restructuring
  • new debt for operating expenses
  • new debt for drought preparedness activities or
  • drought recovery activities.

To be eligible for a Drought Assistance Concessional Loan, a farm business must:

  • be experiencing financial difficulty due to the effects of drought
  • have the capacity to repay the loan and sound prospects for a return to commercial viability within the loan term
  • have taken steps to prepare your business for the effects of drought, including through an acceptable Drought Management Plan
  • have the support of your current lender(s) if a Drought Assistance Concessional Loan is approved​
  • provide satisfactory security against the loan.

You must submit a valid Bureau of Meteorology Rainfall Deficiency Report with your application.

Please read the loan guidelines for full details on eligibility and how the loan application will be assessed. The guidelines are available on each delivery agency website.

It is important that farm businesses do not self-assess their eligibility for a Drought Assistance Concessional Loan. You should contact your delivery agency for assistance and details on the application process.

Delivery agency contacts

Drought Assistance Concessional Loans will be delivered by different agencies in different jurisdictions, on behalf of the Australian Government.

More information, including scheme guidelines and application requirements, are available from the relevant delivery agency website for your jurisdiction.