Emergency Drought Assistance Loans
Key program information
Total loan amount available
No repayments required for the first 2 years
Up to 7 years
Year loan term
No interest rate
What assistance is available?
Queensland based primary producers who have been significantly financially affected by drought may be eligible to access an Emergency Drought Assistance Loan of up to $50,000 to assist in meeting working capital expenses.
Producers may only receive one loan in any five year period up to a maximum of $50,000. The loan may be used for working capital expenses, such as paying employee wages, paying creditors, paying rent and rates and buying goods for carrying on the business.
The maximum combined outstanding loan balance under both the Emergency Drought Assistance Loan and the Drought Carry-on Finance Loan is $250,000.
Am I eligible?
To be eligible for an Emergency Drought Assistance Loan, applicants must:
- demonstrate at least one person in the primary production business is a primary producer
- have carried on the primary production business for at least 12 months
- have taken reasonable precautions to minimise the effect of drought on the primary production business
- demonstrate they can service the loan
- demonstrate financial assistance is required because the primary production enterprise has been significantly financially affected by drought
- demonstrate the primary production business cannot support carry-on from existing cash and other liquid resources, or from within existing available commercial lending facility limits
- present a Farm Business Resilience Plan, satisfactory to QRIDA within a reasonable period of time.
To be eligible for a loan applicants must not also have:
- made an application to the Department of Agriculture and Fisheries supported by an invoice issued in the past six month period for assistance under:
- a freight subsidy under the Drought Relief Assistance Scheme or
- the Emergency Water Infrastructure Rebate under the Drought Relief Assistance Scheme
- a loan that is current under the Scheme and
- received a loan under the Scheme in the past five years.
What can the loan be used for?
The Emergency Drought Assistance Loan may be used for working capital expenses including:
- paying employee wages
- paying creditors
- paying rent and rates
- buying goods, including fuel, for carrying on the business.
Read the Emergency Drought Assistance Loan guidelines for further information.
Take this example...
Bill runs a cattle property in the North West region where he’s been a primary producer for more than two years. His region is currently going through a long drought and most recently a poor wet season. Bill is getting quite concerned of the state of things and knows he needs help paying for essential working capital, like wages and rates, on his property.
Hearing of the interest-free Emergency Drought Assistance Loan which offers up to $50,000 being administered by QRIDA, Bill calls QRIDA. Even though he doesn’t have a Farm Business Resilience Plan, he’s told he can still apply for the loan and submit a completed plan at a later date.
Bill decides to apply with the help of his Regional Area Manager, and after supplying the required documentation and meeting eligibility criteria, Bill is approved for the loan which helps him carry-on for the short term.
What information do I need for my application?
The following information is required to complete your Emergency Drought Assistance Loan application:
- Financial Statements for the past 3 years including:
- Profit and Loss Statement
- Livestock Trading Schedule
- Balance Sheet
- Depreciation Schedules
- Statement of Position
- Personal/Income Tax Returns for the past 3 years
- Monthly Cash Flows for the Current and Next Financial Year (July – June)
- Production Schedules. See QRIDA templates on forms and downloads page.
- Australian Tax Office (ATO) Integrated Client Account Statement
- Schedule of Account Details form all lenders (found on last page of application form)
A Farm Business Resilience Plan will be required within a reasonable period of time. Please note, the requirements for a Farm Business Resilience Plan are available on the DAF website.
Please do not mail original documents as we are unable to return them.
Submit your applications
Applications for the Emergency Drought Assistance Loans must be submitted to QRIDA by one the following:
- Email: firstname.lastname@example.org
- Post: GPO Box 211 Brisbane Queensland 4001
- Fax: 07 3032 0300
QRIDA is administering the Emergency Drought Assistance Loan Scheme on behalf of the Department of Agriculture and Fisheries.
Frequently asked questions
Yes. However, you must be operating separate primary production enterprises under separate Australian Business Numbers (ABN). As part of the assessment, QRIDA will confirm these are eligible separate businesses.
A Farm Business Resilience Plan will be requested within a reasonable period of time. A Farm Business Resilience Plan helps to:
- recognise risks associated with production, including climate and weather (such as drought)
- identify business risks, including financial and market factors, and how to respond to those risks and
- understand personal risks such as workplace health and safety.
DAF have a range or resources available including a Farm Business Resilience Plan template, guidance notes and an informational video on how to complete your plan.