Rural Adjustment Act 1992

What this law does

This Act creates a national framework to help farmers and rural communities adapt to economic changes and market deregulation. It establishes financial assistance programs and an advisory body to help farming businesses become profitable and sustainable—or to help farmers exit the industry with dignity if their farms are no longer viable.

The two main programs

• Rural Adjustment Scheme: Provides financial help to farmers facing hardship, including:

  • Grants and loans (secured or unsecured) for rural adjustment purposes
  • Interest subsidies (helping pay the interest costs on loans)
  • Support services, training, and research

• Farm Business Improvement Program: Focuses specifically on improving farm business management skills through training, planning, and appraisal services.

Who delivers the help

• Direct Commonwealth assistance: The Minister can enter agreements directly with farmers, organisations, or partnerships to provide grants and loans.
• State-based delivery: The Commonwealth enters agreements with States and Territories (including the ACT and Northern Territory) to deliver programs locally. Under these agreements, the Commonwealth usually contributes 90% of costs for the Rural Adjustment Scheme, and 50% for the Farm Business Improvement Program.