What you will learn:
- What is a Drought Management Plan
- Why RIC requires a Drought Management Plan for a Drought Loan
- How to prepare a Drought Management Plan
What is a Drought Management Plan
A Drought Management Plan is a plan that outlines your farm business’ drought preparedness, management and recovery strategies. Some examples of drought preparedness activities include:
- Water management measures and improving water storage capacity
- Stock management strategies
- Reduction or agistment of stock
- Accumulation of feed reserves for stock or sale
Why RIC requires a Drought Management Plan for a Drought Loan
RIC Drought Loans are intended to support farm businesses to prepare for, manage through and recover from drought.
If you are applying for a RIC Drought Loan, you must submit a Drought Management Plan with your application. It should list the strategies and activities you will undertake to prepare for, manage through, and recover from drought. These are specific activities you are proposing will be funded by the RIC loan.
If you want to use your loan to refinance debt, you should also outline how the money you will save through a concessional loan will assist you in drought preparedness going forward.
For example:
- the use of weather and seasonal climate forecasting products or tools to inform production decisions
- proactive water management measures, such as increasing dam capacity, investment in water reticulation and groundwater infrastructure
- the adoption of water-efficient cropping techniques
- reduction or agistment of stock
- a change to more water-efficient crop type
- accumulation of feed reserves for stock or sale
- the adoption of early weaning practices
How to prepare a Drought Management Plan
If you already have a Drought Management Plan that covers these requirements, you should submit this with your application. If you don’t already have one, RIC has simple template to help you get started. You can either complete the one that’s included in the RIC loan application form or use this stand-alone template.
If you have questions about Drought Management Plan, contact us.