Senator the Hon Mathias Cormann

Farmers and agricultural businesses struggling with tough conditions are set for rate relief after the Regional Investment Corporation cut interest rates.

Finance Minister Mathias Cormann said interest rate cuts would deliver considerable savings to its clients.

“Rates will drop to 2.11 per cent for Farm Business Loans and to 1.65 per cent for Water Infrastructure Loans from 1 February 2020,” Senator Cormann said.                                                                                            

“I’m pleased the RIC is doing the right thing by farm businesses by cutting their rates.

“I commend the RIC for continuing to offer meaningful, rural-focused alternatives for finance particularly during these challenging times.”

Minister for Rural Finance David Littleproud said the cut would put thousands of dollars in farmers’ pockets.

“A Farm Investment Loan of $2 million would save another $20,000 a year,” Minister Littleproud said.

“This will take pressure off rural communities and make it easier to maintain a farm or business.

“The RIC is also offering Drought Loans that are up to $2 million, two years interest and repayment free, and three years interest only. 

“Farmers should use these loans to make their farm more drought resistant or to refinance.

“RIC loans are an important part of our suite of measures to support drought communities.

“They complement assistance payments such as the Farm Household Allowance that provides more than $120,000 in payments for farming families.

“We are in this for the long-haul and will keep stepping up our response as the drought steps up.”