Written by Barry Murphy June 26, 2025.
The loans, available via agricultural lender ‘DelayPay’, can be drawn down as part of the company’s ‘Water Now, Pay Later’ offering.
Since its launch in February, DelayPay has lent approximately $4 million to farmers for irrigated water, be it temporary water, lease water or long-term allocations.
Chief financial officer Anton Phillips-Chantelois told Stock & Land that drought conditions across much of southern Australia resulted in a major appetite amongst farmers to borrow for water costs.
“There’s a problem here and it has been solved quite clearly,” he said.
Mr Phillips-Chantelois said farmers were borrowing an average of $97,000, usually in three purchases.
He said the capital was allowing producers to navigate the dry conditions, helping to see their businesses through.
DelayPay solely focused on agricultural lending and up until this point, mainly lent capital for fertiliser and feed purchases by farmers.
The company’s small team are nearly all farming themselves and Mr Phillips-Chantelois said they started to recognise the need to support farmers’ water purchases towards the end of 2024.
“We live and breathe ag,” he said.
“As drought remains across Southern Australia and Victoria, farmers are under mounting pressure to maintain herd, crop and pasture health, and make critical input purchases, all while managing cash flow strains.
“Our solution allows farmers to act when the opportunity makes sense and align repayment with their cash flow.
“It’s about removing delays and giving control back to the grower.”
Mr Phillips-Chantelois said DelayPay had proven its model with other farm inputs.
“Now, we’re applying it to water, one of agriculture’s most vital and under financed assets,” he said.
“This is DelayPay’s next step in helping farmers stay resilient and capital-ready when the conditions turn against them.”
Farmers can access up to $500,000 in working capital within 24 hours, with terms tailored to match agricultural cash cycles.
Dairy farmer Tim Hore, Leitchville, used DelayPay to secure a temporary water allocation earlier this year.
“Cash flow was tight, but we needed water straight away,” he said.
Mr Hore purchased water at $170 per ML in summer, before prices nearly doubled earlier this month.
With the allocation, he was able to keep irrigation running for his 200-head dairy herd.
“It was quick, no fuss and freed up our overdraft for other needs,” he said.
“There should be more of it.”
Mr Phillips-Chantelois said he hadn’t expected the Water Now, Pay Later offering to see such demand.
His team is working with water brokering firm Ruralco to ensure farmers are aware of the borrowing opportunity.
He said water prices had been increasing each week and the program allowed for farmers to purchase allocations now before they became more expensive.