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Drought Concessional Loans Scheme

The Australian Government has extended the application period for the Drought Concessional Loans Scheme to 31 October 2016.

Drought Concessional Loans are available to assist farm businesses recover from and prepare for future droughts and return to viability in the longer term.

Under the scheme, the Australian Government has provided Queensland with $50 million for the provision of Drought Concessional Loans.

Key features of the scheme

  • Loans are for eligible farm businesses for the purposes of restructuring existing eligible debt (including a Farm Finance Concessional Loan), providing new debt for operating expenses or drought recovery and preparedness activities, or a combination of these.
  • Loan amounts will be up to 50% of total eligible debt to a maximum of $1 million.
  • The variable concessional interest rate is currently set at 3.05% (from August 2015).
  • Maximum loan term of five years.
  • Interest only payments available for the loan term.
  • The farm business must repay or refinance the remaining loan balance at the end of the loan term.
  • The availability of loans is subject to funds being available. The scheme will close to applications on 31 October 2016.


To be eligible for a Drought Concessional Loan you must demonstrate that you and your farm business meet the Drought Concessional Loans Scheme eligibility criteria. Detailed information about the eligibility criteria is available in the scheme Guidelines.

Bureau of Meteorology Rainfall Deficiency Report

You must submit a valid Bureau of Meteorology Rainfall Deficiency Report with your application.

This report identifies those areas that have experienced one of the two rainfall deficiencies listed below, which extend 12 months or more. The 12 month period needs to be continuous, in whole months (i.e. not part of a month) and wholly within the last two years.

The report will show whether your farm business is located in an area experiencing:

  • a rainfall deficiency, which is equivalent to, or worse than, a 1-in-20 year rainfall event; or
  • a rainfall deficiency, which is equivalent to, or worse than, a 1-in-10 rainfall event.

Note: if your ‘Rainfall Deficiency Report’ outcome is not listed above, you are not eligible for assistance under the Drought Concessional Loans Scheme.

A Rainfall Deficiency Report can  be obtained using the Bureau of Meteorology's Australian Rainfall Deficiency Analyser.  Please use the following instructions to generate a report:

  • Locate your farm business by using the “+” or “-“ buttons to zoom in or out on the Australian Rainfall Deficiency Analyser.
  • To ensure the necessary accuracy in obtaining a valid Rainfall Deficiency Report, continue using the zoom function until you have positively identified the location of your property. To avoid selecting a neighbouring property in error, make your selection well within your property boundaries. An incorrect report will cause delays in processing your application.
  • Once you have accurately located your farm business, click your mouse once and an option to download a Rainfall Deficiency Report becomes available.  Click “download report”, and then print the Rainfall Deficiency Report and attach it to your loan application.
  • Alternatively, you may enter the individual latitude and longitude co-ordinates of your farm business location (if known).
  • Your Rainfall Deficiency Report will be valid for a period of 60 days and forms part of your loan application. If you are unable to lodge your application within the 60 day period you will need to obtain a new report.

The Australian Rainfall Deficiency Analyser is updated on the 23rd of each month (or next business day).

When assessing applications, QRAA will verify information provided by applicants.

Last updated
15 September 2016