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Making drought decisions with confidence

As drought conditions continue to impact southern and central NSW, the state and Australian governments have announced additional support for farmers, including a range of loans designed to help prepare, manage and recover.

These loans are a welcome and important part of the support available. But for many farmers, there’s a natural hesitation: is taking on more debt the right move for my business right now?

Before making that decision, it’s worth taking a step back. Start with your business, not the loan. Rural Financial Counselling Service (RFCS) NSW encourages farmers to first understand their full financial position and explore all available pathways before committing to new debt.

That’s because the right decision isn’t just about accessing finance. It’s about making sure that decision strengthens your business in the long term.

A different kind of support

RFCS NSW provides free, independent and confidential financial counselling to farmers and rural businesses.

While many know the service for helping farmers access government assistance during challenging times, it also plays a critical role in helping farm businesses become more profitable, resilient and future-focused.

Rural Financial Counsellors (RFC) don’t take a transactional approach. They work alongside you to understand your situation and map out practical, realistic options.

What does that look like in practice?

It starts with understanding where your business stands today.

1. Understanding your financial position

A clear picture of your finances is the foundation for good decision-making. Your local rural financial counsellor can help review your business so you understand where you are, and what’s possible next.

2. Building a plan for the future

A business plan isn’t just paperwork, it’s a roadmap. The Rural Financial Counsellor works with you to set goals, test scenarios and plan investments with confidence.

3. Identifying risks and opportunities

From seasonal variability to market changes, risk is part of farming. The Rural Financial Counsellor helps you assess risk, challenge assumptions and identify opportunities to improve performance.

4. Strengthening cashflow and decision-making

Cashflow forecasting and budgeting can help you understand the impact of your decisions before you make them, giving you more control over your business direction.

5. Exploring options, before committing

This is where loans come into the conversation. Your local Rural Financial Counsellor will help you:

  • Compare available loan options
  • Understand eligibility and requirements
  • Assess repayment capacity
  • Consider alternatives

Sometimes that leads to a loan. Sometimes it uncovers other ways forward.

Drought loans at a glance: what’s the difference?

 

*RIC’s new Drought Hardship Loan is opening soon. Register here https://www.ric.gov.au/new-loans for update.

Support through every stage

If you do decide to move forward with a loan, your local Rural Financial Counsellor can help you prepare and navigate the process, including:

  • Bank reviews and loan applications
  • Farm debt mediation
  • Accessing government support
  • Referrals to accountants, legal and other specialists
  • As well, succession planning for the future of your business and family

A trusted partner for the long term

RFCS NSW has been supporting rural communities for over three decades, helping farmers not only get through difficult periods, but come out stronger.

The service is free, independent and confidential. And focused on helping you take control of your financial future.

For more information on drought loan products, visit the NSW Rural Assistance Authority and the Regional Investment Corporation (RIC).  

For other state government support, visit: