Take a drive through the towns across my electorate of Wannon and it’s plain to see what’s happening. Cafés, pubs, local retailers and service providers—especially those connected to the agricultural industry—are doing it tough. You won’t hear much about it in the cities, but out here, the drought isn’t just hitting the farms — it’s hurting entire communities.
Farmers are always the first to feel the pain of drought. Here in Wannon, like elsewhere in Victoria and South Australia, they’ve had to truck in feed and water, sell off high-quality breeding stock, and assume levels of debt that will take many years to repay. But what’s too often overlooked during a drought is the ripple effect this has on the small businesses that rely on agriculture to survive.
When farmers are forced to tighten their belts, it flows through the towns. The local mechanic gets fewer jobs, the hardware store loses customers, the local butcher, bakery and ag supplies shop all take a hit. And it doesn’t take long for that pain to spread.
These small businesses are the lifeblood of our towns. They employ locals, sponsor sporting clubs, provide essential services and act as social hubs where communities connect and support one another. But now, they’re under more pressure than ever — struggling with rising operational costs, red tapes, and mounting taxes and fines. With consumer spending down as a result of the drought, many simply can’t hold on.
In 2024 alone, over 129,000 Victorian businesses closed their doors.
That’s why the inaction from the State and Federal Labor Governments is so disappointing. During the last major drought, the former Coalition Government introduced interest-free loans through the Regional Investment Corporation (RIC) to help farmers manage debt, maintain cashflow, and keep their businesses running.
But Labor has failed to reinstate this vital support. Worse still, they haven’t even guaranteed the RIC funding beyond 2026. This is a betrayal of regional Australia.
From where we stand, it feels like the Government has forgotten it has a responsibility to govern for all Australians — not just those in the major cities.
Local support agencies are doing outstanding work under enormous pressure, but they can’t do it alone. We need federal action and we need it now. Interest-free drought loans must be reinstated immediately to give both farmers and regional businesses a fighting chance.
Because this drought isn’t just drying up paddocks — it’s drying up main streets. If the Government keeps dragging its feet, we’ll see more businesses close, more families walk away, and more communities lose hope.
We’re a resilient lot in regional Australia. But we shouldn’t have to do it all on our own. It’s time for the Albanese and Allan Labor Governments to step up, listen, and back the people who keep this country running.
ENDS
Contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au
Published in the Weekly Times
