Drought loans welcomed — but dairy must not be left out, and support must be genuinely workable
The South Australian Dairyfarmers’ Association (SADA) has welcomed the Malinauskas Government’s announcement of a new SA Drought Loan Scheme, while urging the State to ensure drought-affected producers outside the initially targeted regions can access support where objective indicators show genuine impact.
The SA Government has announced a $200 million capped scheme offering low-interest loans of up to $250,000 with a 10-year term for drought-affected producers in the Murray Mallee, Riverland and Upper North.
SADA President Robert Brokenshire said the loans could provide essential breathing room for farm businesses, but the eligibility settings must reflect drought conditions on the ground.
“SADA welcomes the Premier’s announcement of a $200 million state-based drought loan package. Access to appropriately structured working capital finance — including loans of up to $250,000 per farm with a 10-year term — can provide essential breathing room for dairy businesses managing cashflow while remaining productive and viable.”
However, Mr Brokenshire said dairy farmers in several regions have faced prolonged rainfall deficits and fodder stress that do not align neatly with administrative boundaries.
“The effects of prolonged dry conditions do not respect administrative boundaries. Reduced pasture growth, escalating purchased feed costs, depleted on-farm reserves, and carry-over debt are being felt well beyond the initial target regions.”
SADA noted Livestock SA’s public warning that the scheme’s regional targeting and conditional settings risk excluding producers experiencing genuine drought stress.
SADA calls on the Government to:
- Broaden eligibility pathways so drought-affected producers outside the initially targeted regions can qualify where objective indicators demonstrate impact.
- Adopt clear, practical assessment criteria that minimise red tape while maintaining integrity.
- Ensure the scheme’s design supports real recovery outcomes by providing transparent terms that farmers and their lenders can confidently assess.
SADA has written to the Premier seeking a meeting with the Premier and the Minister for Primary Industries and Regional Development to provide an on-ground briefing from dairy producers and propose eligibility settings that are accessible, fair, and drought-responsive across South Australia.
New support for SA farmers
Release date: 04/02/26
Drought-affected farming businesses in South Australia’s Murray Mallee, Riverland and Upper North regions will be able to access urgent financial assistance through the provision of low-interest loans of up to $250,000.
https://premier.sa.gov.au/media-releases/news-items/new-support-for-sa-farmers