If you are affected by natural disaster and are seeking emergency assistance, visit Disaster Assist or Services Australia for support.
Learn how RIC defines words and terms relating to loan eligibility criteria.
Commercial debt is debt that has been established upon commercial interest rates, terms and conditions.
This includes financial institutions that take formal security, and you hold signed loan agreement documents including mortgage documents.
Learn more about commercial debt.
A farmer must, under normal circumstances, contribute at least 75% of their labour to the farm business.
This means that their main employment (at least 75% of it) should be from their farm business.
A farmer must, under normal circumstances, derive at least 50% of their income from their farm business.
This means that at least half of the money received from employment is from your farm business.
A drought management plan is a document that lists the strategies and activities you will undertake to prepare for, manage through, or recover from drought.
Some examples of drought preparedness activities include:
A farm business is a business that derives the majority of its income from primary production within the agricultural, horticultural, pastoral, beekeeping (apicultural) or aquacultural industries.
Check the eligible industries and exceptions for a RIC loan.
A farm business is considered financially viable when the business generates sufficient net profit after expenses to:
Learn more about financial viability.
Loan security is often called collateral. It is an asset that you own that is pledged as protection in case you default on loan repayments, not paying some or all back.
RIC requires applicants provide security that is one or a combination of:
These are things you own that are not essential to the effective running of the farm business.
Includes land or property, residential homes (not used as the primary place of residence), or other businesses.
A primary producer is someone whose farm business is involved within the agricultural, horticultural, pastoral, beekeeping (apicultural) or aquacultural industries.
Your farm business should earn the majority of its income from these primary production activities and undertake them all wholly within Australia.
Check the eligible industries and exceptions for a RIC loan.
Relevant on-farm or equivalent experience can include managing a farm business, completing formal qualifications in farming and primary production, or experience working closely with the manager of a farm business.
Significant financial impact is an event outside of your control that has reduced the profitability of your business.
Examples of evidence to support a significant financial impact on the farm business may include documents demonstrating:
Learn more about significant financial impact.
A sole owner is a single and only owner of a farm business.
Controlling interest means that a person owns more than 50% of a farm business giving them the deciding voice among shareholders and a control over the entity.
Succession planning is the development of a plan that allows the smooth transition of the management of a farm and the farm assets from the one generation to the next.
YIYO is a cash flow budget or summary of your farm business’ performance.
It is a season-by-season summary that includes yields, prices, costs for each season of farming as well as your long- term averages.
It can be as simple as an excel spreadsheet or you can use agricultural-specific software programs.
RIC Agri Lending Specialists will assess your loan application based on criteria set out in our guidelines.
Get in touch if you have a question about the meaning of words or terms we use at the RIC.
