Doorstop in Willunga, South Australia

E&OE TRANSCRIPT
DOORSTOP
WILLUNGA, SOUTH AUSTRALIA
THURSDAY, 11 DECEMBER 2025

SUBJECTS: Support for farmers and producers through the Regional Investment Corporation

SENATOR FOR SOUTH AUSTRALIA, CHARLOTTE WALKER: Minister Collins is here with us today, so I’ll hand over to her to talk about this exciting announcement that we’ve got coming out. 

MINISTER FOR AGRICULTURE, FISHERIES AND FORESTRY, JULIE COLLINS: Thanks, Senator Walker. And it’s terrific to be on Yiannis’ property today, and I thank you for hosting us. But also to have with us John Howard from the Regional Investment Corporation here with us. What we’re announcing today is what we said we would do, and that is respond to the Regional Investment Corporation Review that was done by Dr Wendy Craik. And I thank her for that review, and what we’re announcing today as an outcome of that review and also the Drought Forum that was held here in South Australia just a few months ago, is that we’ll be having two new products that will be available in the first half of next year through the Regional Investment Corporation. Those two new products are a Drought Hardship Loan which will be for day-to-day expenses for farmers that have had repeated years of drought, because we certainly heard feedback that farmers are doing a lot of in terms of their own resilience, but what they need is support at the end of that after they’ve had a couple of really tough years. It will be loans of up to $250,000 over five years, and importantly the first two years there’ll be no repayments. Essentially, a repayment holiday up to two years for those loans, particularly for the Drought Hardship Loan. And then, of course, delivering on the Prime Minister’s commitment that the Prime Minister made in relation to a new product under the Regional Investment Corporation, and that will be in relation to the heat wave Algal bloom. That, again, is a new product that will be available in the first half of next year that will be available to wild catch fishers and to aquaculture so marine farming as well. That product, again, is up to $250,000 and will be available in the first half of next year. We would like to make these available a bit faster, but there are some regulatory things that we need to do. But importantly, we’re working as quickly as we can with the Regional Investment Corporation to be able to do that. And, of course, people would be aware that we did announce, and the Prime Minister did announce an extra billion dollars so that loans can continue past the 30th of June next year. The other important thing that I’d like to announce today as well is that we are holding interest rates. The interest rate of 5.18 per cent through the Regional Investment Corporation was due to be reassessed in February. And according to the methodology and formula which we’ve inherited, that would have gone up again. We’re going to keep it at that rate for a further six months, because we know here in South Australia and, indeed, in parts of Victoria and New South Wales we do have a range of farmers still doing it very tough indeed, and what we want to do is support them through that. We’re making that announcement and we have responded in terms of the 32 recommendations and the six findings from Dr Craik’s Review into the Regional Investment Corporation. We are agreeing and noting all of them. There is not any that we are saying we do not agree with. We have, of course, left ourselves a bit of room in terms of a couple of those recommendations for future reform in relation to the Regional Investment Corporation going forward. I’m pleased to take any questions that you might have. 

JOURNALIST: Minister, given that farmers, the main thing they’ve been asking for is really no or very low interest rates, do you feel that this goes far enough to meeting the needs of those farmers that really are still doing it tough? 

COLLINS: This is about cash flow for farmers. The important thing that we heard from farmers was in relation to cash flow. We also know from Dr Craik’s review into the Regional Investment Corporation, that last time different loan products were made available there was actually a huge influx, and what that actually meant was farmers did not get that day-to-day support that they needed in a timely way. The way that we’ve done this loan we think will actually work better for those farmers who are in distress that do need that day-to-day support. Obviously, there is a process to go through, but we think that it will overcome some of those long processing and approval times that were the result of other decisions that were made at the time. 

JOURNALIST: In terms of the loans, I’m wondering why it’s gone with loans instead of a grant, for example? Like, holding it for two years is great, but having that full immediate relief, is there a reason why you went with loans instead of grants? 

COLLINS: Under the National Drought Agreement states and territories do provide that type of support at the time. And certainly, the South Australian Government has done that. They have provided grants to farmers at the time of need here in South Australia, and so has the Victorian Government and the New South Wales Government. Our job as the Federal Government under the National Drought Agreement is to have the better products available and to provide support through the Regional Investment Corporation, which we are doing. We also, of course, have other support available, such as the farm household allowance. We, of course, are supporting farmers with the Farm Management Deposit Scheme as well. We do have a range of products whereby we are doing our job as the Federal Government, and states and territories did step up and do their job as well in terms of those grants. 

JOURNALIST: And the Algal bloom program, can you go a little bit into the farming side of that and aquaculture and how the different elements of support are coming together now? 

COLLINS: What we want to do is to make sure that everybody who has been impacted by the Algal bloom is actually eligible for support. There was some concern that some aquaculture producers may be eligible, whereas wild catch fishers were not. There was a bit of confusion around that. We want to be very clear that it’s available to wild catch fisheries as well as, of course, those that are doing aquaculture farming, so marine farming, as well. We want to be very clear about that. This is another loan on top of the existing loan portfolio. I should be very clear – all of our existing loans will remain under the Regional Investment Corporation. All of our loans are demand driven, and we believe our additional billion dollars investment will be enough to deal with the demand that will come from the new products as well. 

JOURNALIST: I’m Fleurieu based, so I’ve got a bit of bias here, but in terms of the Algal bloom and the drought, can you talk about some of the feedback that you’ve got from farmers, particularly in coastal areas like Fleurieu Peninsula? Have you heard much from them about the double whammy, I guess, that they’re experiencing? 

COLLINS: Certainly, we understand that some people have been doing it incredibly tough, which is why our government has also responded together with the state government now – the hundred million dollars in terms of support because of the impact of the Algal bloom. And I’ve been working with very closely with your Minister, Minister Clare Scriven, in relation to making sure that that support does get out to people who are impacted in terms of the marine area and industries. And I’m aware that around $20 million – more than $20 million – has been made available in terms of grants for those marine industries, whether they be wild catch fishers, or whether they be aquaculture. 

JOURNALIST: Can we ask yourself, your personal views on the loans that are being offered now and how it will help you guys? 

VINEYARD OWNER AND RIC CUSTOMER, YIANNIS FRAGOS: Well, by utilising the first-time farmers loan, I’ve been able to invest in modern agricultural technologies that are enhancing productivity and sustainability. For instance, the traditional farming practices that we’ve inherited offer insights into soil health and crop rotation, and modern technologies such as precision farming equipment and data analytics are optimizing these practices, leading to better yields and resource management. 

JOURNALIST: Can you sort of explain what the drought has been like across Willunga, McLaren Vale, this sort of area, for you guys? Maybe how it’s compared top previous droughts. 

FRAGOS: In preparing for an uncertain future, McLaren Vale has put in place some excellent water plans that really began in the mid-2000’s. I think it was 2008 when Amanda Rishworth was running for our local Member and Prime Minister Albanese came to the McLaren Vale meeting hall – he wasn’t Prime Minister at the time – and engaged in conversations and helped us navigate some stormy seas – a global financial crisis, a drought. And at the time with the assistance of the government from 2008, we were able to put in place excellent irrigation options – the water scheme and then better analytics of the underground bore water, which has been our saviour. Between those two water sources, recyclable and bore water, in managing these tough times. 

JOURNALIST: How do you rely on rain water or rain in general and how has that impacted your operations, or has it not because you’ve had these supplementary supplies? 

FRAGOS: With traditional knowledge of farming practices, the rain affects the whole plant and produces better yields. So we can supplement it with, during dry times, these other water sources. It’s not the same, but it’s what we work with. And, like I’ve often been told, the rain will come. 

JOURNALIST: Could you talk a little bit about the wine industry in particular and grape growing and just how tough it has been for the sector in this region? 

FRAGOS: I can talk about my closest community, that it has been tough because from a generational perspective, there are many older generations that are still vineyard owners and rely on labour force in order to practice grape growing. And number one, it’s been hard to find labour. Unemployment has been low. And number two, the costs have gone up a lot. With the support of the RIC loan, I was able to concentrate on working this vineyard and not to rely on wages for expenses, particularly pruning. Others have had to draw on equity in order to sustain their enterprises.

COLLINS: So what Yiannis was saying in terms of resources he’s using less of, he’s using less water, less fertiliser because of the RIC loan and the equipment that he’s been able to purchase. 

FRAGOS: Thank you for that Minister. The sort of precision farming equipment we’ve invested in, a new watering system with variable speed delivery so we can vary the output of our water, manage it, conserve it to get us through the whole season. And then fertilising practices, we’ve gone to fertigating in order to, as part of that sustainable vision. 

COLLINS: Do you have any questions for John about the loans and the process? 

JOURNALIST: Yeah, how does application for one of these loans work compared to other loans that farmers would be accessing? 

REGIONAL INVESTMENT CORPORATION CHIEF EXECUTIVE OFFICER, JOHN HOWARD: Firstly, we really welcome the news of the Act review response. The additional funding for the support and recognition for the sector, that is now firmly established for going from 1 July next year – that wasn’t in place. And then to have additional new loan product coming into the fold is, we think, great recognition and support of a lot of work we’ve done over the last two years changing how we operate and putting things in place to be in a position to take on new products and new funding. When we hear about these sorts of announcements we go you beauty, we’re achieving on what we want to do to enable or create an entity that can do that. So, working with the government over the next period of time-we’ll be looking at how we actually bring these to life as per the announcement today. That will be worked through. There’s a whole heap of mechanics to go through to enable that into the first half of next year, and we’ll be in a place to be up and running and doing that. Just one point though is as of today on our website, anyone can go and register interest in these new loan products. So that will be a reference point. That’s live now as we speak. So that will be an access point where people can register interest. That way we can keep them up to date on where things are actually up to and, therefore, when we are in a position to be able to take applications, we’ll be able to do that straight away. 

JOURNALIST: How many farmers are you supporting across the country at the moment, particularly in South Australia, I guess, as well? 

HOWARD: Sure, and now you’ve got me on the spot specifically. Look, in South Australia I think it’s between about 350 and 400 that we’ve done in total. Since inception we’ve done over $3.7 billion in loans to over three and a half thousand customers. Active wise now we’re about 2,900 across Australia. And obviously especially over the last 12 months with the conditions that we’ve seen in South Australia and Victoria is we’ve seen a significant uplift in the demand from those areas, utilising the drought and farm investment loan products that we’ve got in place as we speak. 

JOURNALIST: How does that lift the stresses of farming in general, the support that you provide? 

HOWARD: The key part that we hear is around the benefit of the concessionality of our loans. So when they’re in strife and their cash flows are being squeezed, how do they try to manage every single line in their P&L, their expense loan, of which interest is, you know, is a significant one for them. And the benefit that they’re getting – you know, an average loan with us, we’ll do up to $2 million. An average is about a million. And last financial year the degree of concessionality compared to what they were paying their bank was 2.26 per cent. So on an average loan, that’s $22,500 a year, which is a bit over $500 a week cash, is the benefit that comes through. So the feedback that we get is that that is a critical enabler. We do a survey with our customers each year and 61 per cent of people that – of that survey said that they mightn’t even be existing without that support that comes through to them. So with the announcement today, that additional loan product that we’re talking about that the Minister has mentioned with the drought hardship one, which is recognising that when periods of time, you know, start becoming even more onerous over and above that two-year period that there’s another product that can actually come to the fore now and help through that period of time. 

JOURNALIST: Senator, obviously with the Fleurieu Peninsula being, you know, agriculture and coastal – the two biggest stratus down here – how do these programs in particular help Fleurieu people in particular? 

WALKER: They just make all the difference. I’d really like you to go up down in this area, and part of our job is coming down here and speaking to the local community. I was on the Algal bloom inquiry, so heard from a lot of people affected by that. So these measures are just really, really important. I think it just sends a message – there’s been commentary – as in this is a government that really listens to their regions, listens to industry and listens to farmers. And what we’re seeing today is a government that’s listening, but a government that’s actually acting. So I’m really excited. I think my community down here is just over the moon about it. 

JOURNALIST: Yeah. And obviously with climate change becoming more of a prominent issue, do you see programs like this becoming more regular throughout – as the years go on? 

WALKER: On climate change, this government has already made so much progress on climate change. We know there’s so much more to do with emissions. We’re working hard every day towards that. But we’re also working for our communities, for our farmers to make sure that they’ve got the resources that they need to succeed. And in looking at this area specifically, we know that agriculture is just the backbone of the local economy. So that’s why we’re here and we’re supporting them every day.