Michelle Daw, Yorke Peninsula Country Times

Grain Producers South Australia says new federal drought support measures will offer limited immediate relief to grain producers facing severe financial pressure across SA.

Prime Minister Anthony Albanese visited a drought-affected farm near Gawler yesterday (Monday, June 2), where he announced an additional $2 million for the Rural Financial Counselling Service.

This followed an $800,000 commitment from Agriculture Minister Julie Collins during her visit to the state on May 28. Minister Collins also pledged over $36M to extend the Future Drought Fund Communities Program for another four years, aimed at helping farmers prepare for and manage drought.

GPSA chief executive Brad Perry welcomed the additional RFCS funding, noting growing demand from farmers under stress. However, Mr Perry said the broader support measures did little to alleviate immediate financial pressures.

“These measures do not even touch the surface of being enough to relieve the immediate financial pressure grain producers are under,” he said.

“Most of the FDF initiatives are geared towards long-term resilience, whereas what is needed right now is urgent financial relief to help grain producers cover basic family and business costs during one of the driest seasons in recent memory.”

He said many growers were grappling with serious cash-flow shortages and tough decisions about seeding, with uncertain prospects of recovering costs.

GPSA called for targeted support such as council rate rebates and fast, low-interest loans to help producers manage in the short term. It also backed the National Farmers Federation’s push to extend the Rural Investment Corporation’s loan capacity beyond 2026.

“These loans play a crucial role in helping producers manage drought impacts and recover sustainably, and removing or reducing that capacity would risk undermining recovery,” Mr Perry said.

“However, we do recognise that the interest rate offered needs to be lower.”

He also highlighted the toll the drought was taking on producers’ mental health.

“Many are experiencing extreme financial stress, feelings of isolation, and uncertainty about their future,” he said. “Confidence is fragile — there’s a real fear that some families may not be able to keep farming if support doesn’t materialise soon.”

During his visit, Prime Minister Albanese confirmed that the 2025 National Drought Forum, originally scheduled for Mildura, would now be held at Gawler in August.

The forum is a joint initiative of the Australian Government and the National Farmers Federation.

PM acknowledges emotional toll on farming families

Speaking from the Fischer family’s fourth-generation farm north of Gawler, Prime Minister Anthony Albanese said drought had a deep personal impact on those who work the land.

“It’s not just a business; it’s a way of life and they’re very passionate about making a difference,” he said.

“They care about their properties; they care about what they do. And it can be devastating to have this long-term impact that we’re seeing from this drought.”

Mr Albanese said the extra RFCS funding would support more financial counsellors and extend on-the-ground assistance to farming communities.

Premier Peter Malinauskas said South Australia had experienced its driest start to any year on record.

“Our primary production sector is made up of extraordinary men and women applying the best technologies and practices, but they can’t help it when it doesn’t rain,” he said.

“That’s why government has a role to play.” 

This article appeared in Yorke Peninsula Country Times, 3 June 2025.