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Drought-affected SA farmers call for no or low-interest loans rather than 'a handout'
Drought-affected SA farmers call for no or low-interest loans rather than 'a handout'

ABC News

time3 days ago

  • Business
  • ABC News

Drought-affected SA farmers call for no or low-interest loans rather than 'a handout'

Drought-affected farmers under increasing financial stress are calling for access to low or no-interest loans to help keep their businesses afloat. Emily Morgan, a farmer from Jabuk in SA's Mallee region, said while the government could not make it rain, it could provide low-interest rate loans to help in the short term. "We're not asking for a handout … or free money," she said. "[Even with a] two to three per cent low interest loan we'd be able to borrow some money in the short term to help us get through this really difficult period." Ms Morgan said these funds could be used to buy fodder or fertiliser, or keep staff employed. And it would go a long way in easing the mental load. It follows an announcement that the federal government will funnel an extra $2 million into the Rural Financial Counselling Service and host a national drought forum in South Australia later this year. Prime Minister Anthony Albanese visited a farm north of Adelaide on Monday to announce the funding which follows an $800,000 commitment last week for financial counselling service providers in SA and Victoria. "This extra funding will allow the financial counselling service to employ more financial counsellors [and] deliver more support to people on the ground," the prime minister said. South-east farmer George Kidman welcomed funding for financial counsellors but said farmers needed immediate support from lenders. "I think it would be remiss of us to not say 'thank you' and anything we can get to help fellow farming families is very welcome," Mr Kidman said. "But I'd love to feel like our governments are putting pressure on the financial lenders on what can they actually do for us now in terms of interests rates and providing real relief now and going into the future." Like many producers across drought-affected areas, Mr Kidman has been spending vast amounts on purchasing feed for his livestock while waiting for rain. "The extra cost has been massive. Over the past two years our supplementary bill has been bigger than it's ever been," he said. "That's where all our finances are going — into the livestock." Southern Mallee cropper and grazier of more than 40 years Richard Howard said he was disappointed to only see more money for financial counselling. "I think the money needs to be put into the grass roots, with interest rate subsidies and things like that, because that's where people are really struggling," he said. "All people talk about is that the bills roll in, there's not much income, and you've got to keep paying them. "Most people have been to the banks and sought the go-ahead for the season, but it doesn't make it any easier. Drought-affected farmers are able to access low-interest loans from the Australian government's specialist farm business lender, the Regional Investment Corporation (RIC). New RIC loan applications from SA farmers have more than doubled in 2025 compared to the same time last year. National Farmers Federation president David Johinke said adequate funding for the RIC was critical, and that the current interest rates and terms needed a reset. "Its funding is uncertain after the end of financial year, next year, and then also the criteria of getting that funding on the ground is something we want reviewed urgently," Mr Johinke said. Federal Agriculture Minister Julie Collins said the government was considering feedback it had received from farmers around challenges accessing the Farm Household Allowance and RIC loans. "I don't want to rule anything in or out at this point," she said. "This is about actually listening carefully to the impacts of the support that is available and what additional support may be needed, and what we might need to do in terms of the existing supports."

Farmers call on city residents to keep consuming meat amid drought
Farmers call on city residents to keep consuming meat amid drought

ABC News

time17-05-2025

  • Climate
  • ABC News

Farmers call on city residents to keep consuming meat amid drought

The red gum-studded paddocks of Coonawarra in May are usually flush with swathes of neon green grass, awaiting the arrival of lambs. But this year, the ground is the colour of the vine leaves turning gold and brown. The lack of rain across South Australia, and more unusually in the south-east, has led to a lack of feed for livestock. At significant expense, farmers are carting grain and hay for ewes on the point of lambing, and cows with calves at foot. But Coonawarra livestock farmer George Kidman said he and many in his farming community still felt hopeful and urged "urban neighbours" to rally around the state's farmers by keeping meat on the dinner plate. "When they turn on the news and there's stories about drought support, I worry they might think farmers are just putting their hands in the till. "But we're just looking for some understanding and acknowledgement that it's tough, but we still have hope." He said he was telling friends in the city who were asking how they could help that buying Australian red meat was a "real way to directly support farmers". Mr Kidman said much like the dairy industry's "milk price wars" in 2017, where major supermarkets discounted milk to $1 a litre, there was a groundswell from urban shoppers wanting to support farmers by buying branded products. "We saw consumers willingly paying slightly more for their milk because they wanted to support farmers," he said. Further south at the livestock saleyards near the regional city of Mount Gambier, livestock buyer Ian Perryman said the situation was one he had not seen in his 50-year career. "The south east is normally a very reliable area," he said. Mr Perryman said the region usually received between 635 millimetres and 890mm of rain a year but was down to between 127mm and 177mm. He said the second year of rainfall deficit had led to a larger number of livestock being sold out of season, including young cattle "because farmers can't afford to feed them". He said he was concerned about the longer-term outlook for abattoirs, and potential supply shortages, or increased prices, on supermarket shelves. "In the short term, we're buying plenty of cattle, but once those cattle numbers are gone towards the back end of 2025 and into 2026, we could be seeing the least number of cattle put through processors we've ever seen," he said. But in town, customers are still lining up at the counter of Brian Shelton's butcher. Mr Shelton is the latest to don the blue and white stripe apron in the family business of 80 years. "In reality, we're still run off our feet in here," he said. "There's no doubt the cost of living has risen, and the drought has forced selling out of season for a lot of farmers, but we still find customers want their cuts and even the premium cuts like scotch fillet are still selling well," he said. "I believe demand is holding up because customers are used to eating quality meat, and are seeking out even the more expensive, premium cuts. "There's been a slight rise in the sale of secondary cuts and casserole meat, but not as much as I had thought there might be." Mr Shelton said he was confident his butcher shop could continue supplying clients from as far away as Kingston, Bordertown and into Victoria amid the ongoing drought.

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