Australian Government farm business lender, RIC (Regional Investment Corporation), today released the RIC Farm Loans Customer Insights Brief 2024, revealing surveyed RIC customers are concerned about sustained high interest rates and increasing farm production costs, yet remain positive about their farm business and the long-term future of the agriculture industry.
RIC Chief Executive Officer, John Howard said the annual survey of RIC customers is important to understand farmers’ concerns and the impact of RIC concessional loans.
“Our RIC Farm Loans Customer Insights Brief 2024 reveals high interest rates remains the biggest concern for farmers. It is pleasing to see RIC low-cost loans help ease that pressure with 79 per cent of surveyed RIC customers using their loan to pay down debt,” said Mr Howard.
“It’s no surprise that the cost of operating a farm business and challenges posed by market and price volatility are top concerns.
“Farmers are using RIC loans to help ease their financial burden by implementing sustainable agriculture practices (62 per cent), expanding the farm business (58 per cent), and improving drought preparedness (58 per cent).
“Together, these contribute to a more positive outlook, with 89 per cent agreeing that their RIC loan has given them greater confidence in the future of their farm – that’s up from 86 per cent since last year.”
Mr Howard said RIC customers’ benefit from financial breathing space to help manage through situations outside their control.
“Our low variable interest rate and interest only repayment terms for the first 5 years have been a lifeline for thousands of farming families in times of drought, natural disasters or other major financial disruptions - 74 per cent of customers surveyed agree their RIC loan has made their recovery easier than it otherwise would have been,” Mr Howard said.
The research also revealed that RIC loans continue to be seen by customers as contributing to regional investment and resilience, with RIC-assisted farmers having a positive outlook for their farm business and the future of the Australian agriculture industry.
“Of the RIC customers surveyed, 89 per cent agreed their RIC loan has given them greater confidence the future of their farm or small business, confidence in the profitability of their farm (89 per cent), and that RIC contributes to resilience in Australia's regional communities (90 per cent),” Mr Howard said.
RIC Farm Loans Customer Insights Brief 2024 is based on independent research conducted by JWS Research in July 2024 with existing RIC loan customers from across Australia and from a range of agricultural industries.
Read the RIC Farm Loans Customer Insights Brief 2024.
Read more about RIC loans.
RIC Farm Loans Customer Insights Brief 2024 highlights:
- 89 per cent agree their RIC loan has given them greater confidence in the future of their farm business
- 89 per cent agree their RIC loan has given them greater confidence in the profitability of their farm
- 71 per cent agree they have greater confidence in the long-term future of the agriculture industry
- 57 per cent agree their RIC loan enabled their farm to keep operating, without it their farm would not have survived.
- 91 per cent agree RIC contributes to regional economic growth and investment
- 90 per cent agree that RIC contributes to resilience in Australia's regional communities
- Top RIC loan uses include paying down existing debt (79 per cent), implementing sustainable agriculture practices (62 per cent), expanding farm business (58 per cent), and improving drought preparedness (58 per cent)
- Main concerns affecting RIC loan customers were increasing interest rates (74 per cent), increasing farm production costs (67 per cent), market volatility (64 per cent), and natural disasters (64 per cent).
Ends
Media Contact: E media@ric.gov.au | M 0435 168 885
About RIC
RIC (Regional Investment Corporation) is an Australian Government farm business lender providing low-interest loans for farmers and farm-related small businesses in financial need to strengthen Australian agriculture. RIC loans can be used for management, recovery and future proofing following severe business disruption due to drought, natural disasters, biosecurity issues or other significant market events. RIC loans can also help farm businesses to establish farm businesses for first generation farmers or succession planning for next generation farmers. RIC’s vision is to build thriving regional communities. Since 1 July 2018 RIC has settled 3178 loans valued at more than $3.41 billion as at 30 September 2024.