Austria launches drought relief for agricultural loans

The Austrian federal and state governments have launched a drought relief program to support agricultural businesses facing crop failures and income losses due to the 2026 drought. A total of 25 million euros is being provided to support working capital loans of up to 300 million euros nationwide.

Interest subsidies are available for loans between 5,000 and 75,000 euros, with terms of one to three years. For businesses with drought insurance or those enrolling in new insurance for 2027, the subsidy is 2.75 percent. For uninsured businesses, the subsidy is 2.5 percent. To qualify, the loan interest rate must not exceed 3.9 percent.

Funding limits for these loans are determined by farm size. For arable and grassland, up to 750 euros per hectare can be considered, while special crops such as fruit, viticulture, horticulture, and vegetables can receive up to 4,500 euros per hectare.