The drought assistance scheme offers concessional interest rates currently of 3.05 per cent for Drought Concessional Loans and 2.71pc for Drought Recovery Concessional Loans.

Agriculture Minister Barnaby Joyce said the loans were the cheapest finance available to drought-affected farmers.

Under the scheme Drought Concessional Loans are available for an interest-only term of five years, while Drought Recovery Concessional Loans are available for 10 years with interest-only repayments available for the first five years.

Mr Joyce and his Queensland counterpart Bill Byrne say the schemes provide essential assistance to drought-stricken farmers to manage the effects of drought and return to viability in the long term.

Up to 80pc of Queensland is officially in drought. 

“This government has listened to those farmers and we are delivering practical support to both help farmers through the drought and recover from its effects as conditions improve," Mr Joyce said.

“Through the Agricultural Competitiveness White Paper, we are delivering on our commitment to continue concessional loans schemes by making up to $30 million available for Drought Concessional Loans and up to $15 million for Drought Recovery Concessional Loans to Queensland farmers this year."

Mr Byrne said funding through the drought concessional loans schemes delivered welcome assistance to the state’s farmers at a critical time.

“Drought concessional loans schemes complement the Queensland government’s $52.1 million drought package announced earlier this year," Mr Byrne said.

Mr Joyce said that 163 farm businesses in Queensland were already benefiting from the earlier drought-related loans schemes with more than $90 million in loans approved up to August 31.

Farmers thinking of applying for a concessional loan or an other assistance measure not to self-assess their eligibility and to talk to the experts at QRAA, the Department of Human Services or their local Rural Financial Counselling Service to find out more about their options.

Scheme guidelines and application forms for the Drought and Drought Recovery Concessional Loans Schemes are available at www.qraa.qld.gov.au or contact QRAA on Freecall 1800 623 946.

For more information on the range of Australian Government assistance for farmers, farm businesses and rural communities, visit agriculture.gov.au/assistance.

For more information on the range of Queensland Government Assistance available to farmers visit daf.qld.gov.au/environment/drought/assistance.