Home > Financial Programs > Rural producer > Drought Recovery Loans

Recovering from the effects of drought conditions is never easy, particularly when the costs associated with planting or reinvigorating a post drought crop and purchasing stock, are expensive. QRAA can provide the financial assistance needed to cover the costs associated with these activities, including the purchase of:

• seed
• seedlings
• chemicals
• fertiliser
• fuel

These loans can also assist with the purchase of breeding stock or other livestock to enable post drought restocking.

Loan Amount

The total aggregate loan amount for Drought Recovery Loans is $200,000. However, individual maximum amounts have been set for each loan purpose.

1. Crops
   The maximum amount for crop loans is $60,000 per primary production unit.
2. Stock
   The maximum amount for purchasing breeding stock is $200,000 and other stock purchases have a maximum of $100,000.

Interest Rates

To enable your interest payments to be consistent, QRAA can offer low interest rates over fixed terms of one, three or five years. Please view our current interest rates.

Interest only options may be available for up to two years depending upon your circumstances. Please discuss this option with us.

Repayment Terms

1. Crops
   Repayment terms of up to five years may apply for crop loans.
2. Stock
   Repayment terms of up to seven years may apply for stock loans.

Shires Eligible for Drought Loans (as named prior to the council amalgamations):

Certain areas of Queensland have been nominated by the Minister for Primary Industries and Fisheries as suffering severe drought. All Queensland Shires can access these loans, excluding Aurukun Shire Council, Etheridge Shire Council, Flinders Shire Council, Hinchinbrook Shire Council, Mornington Shire Council, Torres Shire Council and Townsville City Council.

Fees and Charges

As with all QRAA programs, no establishment, account keeping or early payout fees apply.

Terms and Conditions

Our programs are subject to terms and conditions that identify the required eligibility criteria for each loan. If you are interested in applying for a Drought Recovery Loan, some of the key criteria you will need to meet include:

• Not having net landed assets exceeding $2 million at current valuations.
• Own or occupy land, and carry on a primary production enterprise on the land, in a drought affected area*
• Have sound prospects for commercial viability, and the ability to service the loan in the long term.
• Have exhausted all liquid assets and normal credit sources.
• Demonstrate a financial need for concessional assistance.
• Occupying your property on a working basis either as an owner-operator, sharefarmer, or as part of a small family company, partnership or trust.
• Normally deriving your major source of income from the enterprise.

*For further information regarding the eligibility criteria for Drought Recovery Loans, please contact us on Freecall 1800 623 946 or view the full terms and conditions for Drought Recovery Loans in the following guidelines:

Drought Recovery Loans Guidelines (37KB)
Drought Recovery Loans Guidelines (70KB)

Applications for Drought Recovery Loans are to be received by QRAA by 30 June 2010.

Questions on Completing your Application

Should you have any queries with regards to completing the application form, please contact us on Freecall 1800 623 946 or contact your nearest Client Liaison Officer.