RIC celebrates five years having delivered $3.16 billion in low-cost loans to farm businesses

The Regional Investment Corporation has passed a five year milestone having delivered $3.16 billion in concessional loans to agricultural businesses on behalf of the Australian Government to build a stronger, more sustainable industry.

Since start-up, RIC has settled 2,921 loans to support Australian farm businesses across beef, dairy, sheep, cropping and horticulture industries.

So far 82 per cent of RIC loans have gone towards supporting the sheep, beef cattle and grains industries.

Minister for Agriculture Murray Watt congratulated RIC on its fifth anniversary this July and for its achievements so far.

“RIC concessional loans to farmers and farm-related small businesses help them to manage disruption such as drought and natural disasters and support them to recover, prepare and be in a better position to remain prosperous and grow,” Mr Watt said.

“I congratulate the RIC and its team for reaching this five-year milestone and for their ongoing work to encourage the long-term resilience and profitability of Australian farm businesses.”

RIC chief executive John Howard said RIC was born in a period of one of the most severe droughts in recent Australian history with the introduction of the Drought Loan and AgBiz Drought Loan.

“Today our loans continue to directly support farm businesses through disruptions like natural disasters, bushfires and floods with access to the Farm Investment Loan,” Mr Howard said.

“Farmers have welcomed RIC loans assistance to improve cash flow, providing much-needed breathing space to farmers in financial need to restock, rebuild, to improve land management practices, and to mitigate potential future risks.”

During the past five years, new legislation has delivered additional loan products, including the AgriStarter Loan which launched in January 2021 to encourage first generation and next generation farmers to accelerate succession planning and their business journey.

“Our founding vision remains the same — to build a stronger agriculture industry and grow thriving regional communities,” Mr Howard said.

“Now as our organisation matures and evolves, we are proud to be able to continue to make a valuable contribution to helping our industry become more sustainable for now and future generations.”

According to the Government, 91 per cent of RIC-assisted farmers agree that their concessional loan made drought recovery easier and 89 per cent reported greater confidence in the future of their farm business.

RIC loans can be used to refinance existing debt, invest in capital expenses and support improvements to farm business practices.

The concessional rate for RIC farm business loans is 4.52 per cent per annum.

RIC loans offer a 10-year term of five years interest only and five years principal and interest repayments.