Right now, many farmers across South Australia are feeling the pressure. You’re coming out of a tough season, facing high input costs, or trying to work out how to keep cash flow steady between harvests. Maybe you’ve got big plans for the farm—new water infrastructure, succession transitions, or efficiency upgrades—but you’re not sure how to fund them or which carries the highest priority.
At the same time, banks are tightening their lending criteria and loan approvals are taking longer than usual due to increased demand. Waiting too long to secure funding could mean missing the opportunity to finance your next season or future-proof your farm.
And here’s the thing—Regional Investment Corporation (RIC) loans aren’t just for drought recovery. They’re an underutilised tool that can help farmers invest in infrastructure, succession planning, and long-term growth. The right finance strategy can make all the difference, but only if you act early.
Here’s how to strengthen your loan application, maximise RIC loan benefits, and get ahead of lender timelines before it’s too late.
More Than Drought Relief: The Untapped Potential of RIC Loans
Many farmers see RIC loans as a short-term safety net, but these concessional loans can be a powerful tool for farm investment, succession planning, and infrastructure development.
A perfect example is Mac’s story, where a drought loan helped him fund long-term water infrastructure, cut costs by up to $50,000 per year, and set up the next generation for success. Instead of relying on standard bank lending with short-term restrictions, Mac was able to think beyond immediate needs and invest in his farm’s future.
➡️ Drought loan success in action – a case study
How Farmers Can Use RIC Loans Strategically
✔ Succession Planning – Secure funding to transfer assets while keeping farm operations running smoothly.
✔ Infrastructure Investment – Build water storage, fencing, sheds, or improve soil retention.
✔ Sustainability Projects – Upgrade irrigation, invest in renewable energy, or increase drought resilience.
✔ Cost Reduction – Reduce long-term expenses by funding improvements that boost efficiency.
Why timing matters: Some farmers may only qualify for a drought loan while still affected by financial impacts from previous conditions. A predicted good season ahead could mean you lose eligibility—so applying sooner rather than later is critical.
Banks Are Tightening Their Lending Criteria – Is Your Application Strong Enough?
Beyond RIC loans, many farmers also rely on seasonal finance to fund next year’s crop or livestock program. With lenders seeing high demand and stricter approval processes, farmers who apply early will be in the best position to secure funding.
What Banks Expect in 2025
Lenders no longer approve loans based on cash flow and financials alone. To strengthen your application, you’ll need:
✅ A Clear Contingency Plan – Banks want to see how you’ll manage if conditions don’t improve.
✅ Drought Reserves & Financial Buffers – If you have a Farm Management Deposit (FMD) or other reserves, outline how they’ll be replenished.
✅ Supporting Reports from Experts – Agronomists, consultants, and accountants can provide documentation that strengthens your case.
✅ Engagement with Lenders – Inviting your lending manager to an advisory meeting can demonstrate long-term financial planning.
The risk of waiting too long:
- Decision timelines will blow out as more farmers apply.
- Loan rejections are more likely for those without strong business plans.
- Missed funding windows could mean cash flow gaps for the next season.
How to Strengthen Your Loan Application and Get Ahead
1. Prepare Early & Engage With Your Lender
- Review your financial position and identify gaps.
- Have a conversation with your lender before submitting an application.
- If you have external advisors, invite your lending manager to a meeting to reinforce financial planning.
2. Work With Professionals to Back Your Application
- Get reports from agronomists or farm consultants to validate your projections.
- Work with FSSA to structure your financials and contingency planning for lender approval.
3. Consider How RIC Loans Fit Into Your Bigger Picture
- Even if you qualify for an RIC loan today, that won’t last forever.
- Compare RIC funding with seasonal bank loans to determine the best financial strategy.
- Use concessional interest rates to fund long-term investments, not just short-term needs.
Take Action Now
If you need help mapping out your priorities and ensuring your business can run smoothly in any situation, give Dibbo a call today. Let’s put a plan in place so you’re prepared for whatever comes your way.
📞 08 8253 2906
📧 info@financialservicessa.com.au
