NSW Drought Loans: Up to $500,000 available

NSW Drought Loan Support Now Available - Up to $500,000 for Eligible Primary Producers

Many of our NSW farming clients are doing it tough at the moment, and there is important drought support funding now available through the NSW Rural Assistance Authority (RAA).

On 16 February 2026, the government announced a significant expansion of drought support funding, increasing the maximum Drought Ready and Resilient Fund Loan to $500,000 and introducing a new Drought Relief Loan of up to $100,000.

The Drought Ready and Resilient Fund Loan can provide up to $500,000 to eligible primary production businesses to fund practical drought preparedness, resilience and on-farm improvement activities. The loan is available on eligible GST-exclusive expenditure, and importantly, funding is limited. Once the allocated funding is exhausted, no further loans will be offered.

This means that businesses who may be eligible should seriously consider acting sooner rather than later.

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What can the Drought Ready and Resilient Fund Loan be used for?

This loan is aimed at helping primary producers invest in measures that improve drought preparedness and long-term resilience.

Eligible activities can include areas such as:

Animal welfare

• purchasing and transporting fodder

• purchasing and transporting stock and domestic water

• livestock feed storage, mixing and feeding equipment

• transporting stock to sale or agistment

• veterinary or professional nutrition advice

• fencing for rotational grazing, exclusion or cluster fencing

• containment feeding pens and stock shade structures

• planting of trees

Farm preparedness

• tanks, stock water systems, pumps and bores

• irrigation efficiency upgrades

• water conservation infrastructure

• grain and fodder storage infrastructure

• livestock feeding equipment

• infrastructure repairs and maintenance

• upgrades to planting machinery

Income diversification

• funding to support diversified income streams within the farm gate

• alternative primary production income streams within the farm gate

Environmental improvements

• pest and weed control

• on-farm solar conversion

• soil conservation and earthworks

• soil biology or compost making equipment

Training and business development

• training and professional development that improves drought resilience

• professional consulting directly related to drought preparedness

Key eligibility points

While every application needs to be assessed on its own facts, the key eligibility requirements generally include that the business:

• is a sole trader, partnership, trust or private company

• is operating in NSW

• has an ABN

• declares itself for tax purposes as a primary producer

• is not a public company

• has at least one owner contributing labour to the business

• has generated eligible primary production income in at least one of the last 3 financial years, generally meeting the income thresholds

• has a suitable Farm Business Resilience Plan

• can provide satisfactory security where required

• can demonstrate long-term viability and capacity to repay the loan

There is also some flexibility where current income has reduced due to drought or biosecurity events, or where the business has long lead times to full production.

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What is different this time?

The biggest change this time around is that the RAA now requires a Farm Business Resilience Plan (or equivalent) as part of the application.

This is not just a simple form or a quick funding summary. It is a more detailed and technical document that needs to clearly explain:

• the structure and current position of the farming business

• the drought impact on the enterprise

• strategies to prepare for drought

• strategies to manage drought, including trigger points and action plans

• strategies to recover from drought

• actions already taken by the business

• the financial objectives of the business

• the long-term viability of the enterprise and capacity to repay the loan

In practical terms, this document needs to properly connect the proposed spending to real resilience outcomes for the business. That is where many applications will either be strengthened or fall short.

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Brief note on the new $100,000 Drought Relief Loan

In addition to the larger resilience loan above, the RAA has also introduced the Drought Relief Loan, which opened on 10 March 2026.

This is a separate loan program that can provide:

• up to $100,000

• minimum loan amount of $25,000

• up to 25% upfront drawdown (maximum $25,000) without invoices initially

• maximum term of 5 years

This loan is designed more for immediate drought-related support and can be used for eligible activities such as:

• fodder

• stock and domestic water

• livestock feed and feeding equipment

• veterinary and welfare advice

• fencing and containment feeding infrastructure

• water infrastructure

• grain and fodder storage

• pest and weed control

• soil conservation and related earthworks

This can be a very useful option for businesses needing more immediate relief, while the larger Drought Ready and Resilient Fund Loan is better suited where there is a broader resilience and capital improvement strategy in place.

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How WLW Group can help

At WLW Group, we have strong experience working with primary producers and rural businesses, and we understand that these applications are not just about filling in forms.

The real work is in preparing a strong application that properly addresses:

• eligibility

• the resilience plan requirements

• the financial position of the business

• viability and repayment capacity

• the linkage between proposed expenditure and drought resilience outcomes

We can assist from start to finish, including:

• reviewing eligibility

• identifying suitable loan-funded activities

• preparing the Farm Business Resilience Plan

• assisting with supporting financial information

• helping coordinate the loan application process with the RAA

This is particularly important because the resilience plan is now a central part of the application and is far more technical than what many clients may have dealt with under previous funding programs.

Please contact us urgently if you would like to explore this. Given the current drought conditions and the fact that funding may be exhausted once allocations are fully committed, we encourage affected NSW clients to get in touch with us as soon as possible if they would like to explore these programs.

Please contact our office, or speak directly with Ian or Nijo, if you would like us to assess your position and assist with the application process.