Small businesses suffer the flow-on effects of SA's record-dry conditionsBy Viki Ntafillis and Kate E HigginsABC North and West SATopic:Small Businesses2h ago2 hours agoTue 29 Apr 2025 at 10:12pmErin Pearse says her salon clients are spending less by "stretching out" their appointments. (ABC North and West SA: Viki Ntafillis)In short: Small businesses in parts of regional South Australia are feeling the pinch, as record-low rainfall impacts farm profits.Bureau of Meteorology figures show a number of towns experienced their driest year on record in 2024.What's next?The Coalition and Labor have both promised support for farmers in regional South Australia.abc.net.au/news/small-businesses-regional-south-australia-slow-spending-drought/105173752Link copiedShareShare articleSmall businesses in South Australia say they are struggling after some of the driest years on record in many regions.Most years, the average annual rainfall in the lush wine region of Clare, around 145 kilometres north of Adelaide, is 527 millimetres.But according to the Bureau of Meteorology, in 2024 the Clare Valley recorded just 287mm – 53 per cent of its average.Stay updated:Federal election live updates: Get the latest news from the campaign trailCatch the latest interviews and in-depth coverage on ABC iview and ABC ListenLowest annual average rainfalls were also recorded for Snowtown, almost the entire Yorke Peninsula and several Eyre Peninsula towns including Cummins and Ceduna, and on Kangaroo Island at Cape Willoughby.Clare hair salon owner Erin Pearse said locals' spending had been "slowing", as clients — many of whom worked in agriculture — stretched out their regular appointments and opted for cheaper services.Erin Pearse says spending around Clare has been "slowing down" in recent months. (ABC North and West SA: Viki Ntafillis)"Instead of going for their six weekly appointments, they're sort of stretching out to eight to 10 weeks," she said.Ms Pearse said she took on more cost-effective products to combat spending cuts and stay affordable, and recycled most of the rubbish from her business locally."It's [about] keeping everyone in business because the flow-on effect for our farmers not spending is that we're not able to spend … which is really starting to get a little bit scary," she said.Clare retailer Buff Byrne said March was "probably the worst month we've had in years" for her retail and embroidery business.Clare small business owner Buff Byrne says many locals are "treading carefully" with money. (ABC North and West SA: Viki Ntafillis)"It was 50 per cent down," she said."Everyone's just treading carefully with how much they're spending."I've definitely had primary producers in talking about [the dry conditions] and it's not only them — it's everyone."Betting on the rainRicardo Rivas said he normally saw an influx of up to 40 new clients at his Clare gym during harvest, but there had only been about 12 this year."There hasn't been that much to harvest … so that tends to affect that cash flow and that trickles down to the locals," he said.Ricardo Rivas says new gym memberships are low for this time of year. (ABC North and West SA: Viki Ntafillis)"The first thing to go is the gym — they need to eat."In early 2024, Mr Rivas began helping out the rural health initiative Fat Farmers by hosting weekly workouts."Mainly it's a physical activity, but … the extra 40 minutes of catch-up between all of them that they have afterwards, that keeps them coming all the time," he said.Clare was one of several regions in SA that recorded its lowest rainfall on record in 2024. (Supplied: Bureau of Meteorology)"It just feels good to be around more people that are doing the same and they're all struggling, and at least they help each other."They have bets on when the rain is going to come."Over on the Eyre Peninsula, Michelle Rayner in Kimba said her cafe's sales hit an unprecedented low over summer.Michelle Rayner says sales at her cafe in Kimba have been down 60 per cent. (ABC North and West SA: Viki Ntafillis)"I had to cut down the staff and I reduced my menu as well," she said."We were down over 60 per cent."We're into our 10th year this year and we've never seen anything like that."Read more about the federal election:ANALYSIS: Why Dutton can't resort to a scare campaign with older AustraliansAustralia's next prime minister will inherit a 'world in disarray'Find out how your views line up with the major parties with Vote CompassWant even more? Here's where you can find all our 2025 federal election coverageWith a federal election around the corner, Ms Rayner said she wanted politicians to offer solutions that "would actually help farmers get through the drought"."They''ll quite often offer up all these feel-good things, all this counselling … but it's not actually going to help," she said.High demand for water deliveriesWater carter Grant Fidge said he had been "pretty busy" trying to keep up with demand, as many locals from Clare and its surrounds relied on tank water rather than mains water."On an average year, I sort of just work 8am-5pm and have a bit of a lunch break and keep up fairly easily," he said."This year I'm … more 7:30am-6:30pm … and I can come do the odd Saturday just to keep up."Water carter Grant Fidge says most locals relying on tank water are running low this year. (ABC North and West SA: Viki Ntafillis)Mr Fidge said he was receiving calls from people in the Mid North who he had never delivered to before."A lot of people have got really big tanks and if we get good rainfall in winter, then they get through — but everybody's getting low this year," he said."Everyone's hanging out for the rain but usually it doesn't start until around June here, it seems, the last few years."Business support at capacityRural Business Support (RBS) chief executive Brett Smith said the organisation was currently assisting 540 agricultural businesses across regional South Australia, and around 15-20 small businesses not directly tied to agriculture."We only have half a [full-time equivalent employee] servicing the entirety of SA [for regional small businesses] and that … is at capacity," he said.Mr Smith said with new funding from the recently announced drought relief package, RBS hoped to take on more small business clients soon, as the situation was "quite serious".Rural Business Support CEO Brett Smith says the situation is "quite serious" for many small operations. (ABC Adelaide: Luke Pike)"It's an ecosystem, everyone relies on each other," he said."Once you lose a family … if they leave town, there's less people at the school, less people at sport, and there are less people doing the volunteer things, which really make our small towns flourish."Government reliefIn a joint statement, Liberal MP for Barker Tony Pasin and candidate for Grey Tom Venning said a Coalition government would commit $1.8 million over six months to extend the Rural Financial Counselling Service for eligible farmers, fishers, foresters and small related businesses "experiencing, or at risk of, financial hardship".Follow the latest election newsPhoto shows ABC News Radio logo and the ABC Listen logo below it on a light blue background.Hear the latest election news as it happens on the Election Central Playlist. Only on the ABC listen app.South Australian senator Karen Grogan said Labor had "backed in" regional resilience through the $519 million Future Drought Fund."We are also providing help for struggling farmers, including through concessional loans, Farm Household Allowance, and access to the Rural Financial Counselling Service," she said in a statement."Labor's National Drought Agreement with states and territories ensures a coordinated, long-term approach to resilience."LoadingLoading...Having trouble seeing this form? Try this link.Posted 2h ago2 hours agoTue 29 Apr 2025 at 10:12pmShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesAustralia faces a 'lonelier' world with rules-based order crumblingTopic:National SecurityPhoto shows Two men wearing glasses and suits behind the backdrop of the world map.Data shows shift in views towards Australia's relationship with US and ChinaTopic:Foreign AffairsPhoto shows A graphic shows a defence tank and aircraft over a map of Australia.There's a reason Dutton can't resort to a scare campaign with older AustraliansAAnalysis by Annabel CrabbPhoto shows Peter DuttonHolmes à Court fuels movement that denies he'll have seat at the tableTopic:Political Parties and MovementsPhoto shows shac tealFinal campaign dash as Albanese sweats on Dutton suburban fightbackTopic:ElectionsPhoto shows Anthony Albanese takes a selfie with the public on a street.Related storiesDrought relief boosted by $55m, with farmers promised 'faster' responsesTopic:DroughtsPhoto shows A dry river bed with a pool of water at one end.Adelaide reservoir levels drop to historic lows as parts of the state experience 'pretty serious drought'Topic:DroughtsPhoto shows A shower runs with water.'Water is a basic need': An invisible disaster is unfolding in South AustraliaAnalysis by Meagan DillonPhoto shows cracked dry soil surrounded by dry shrubRelated topicsAdelaideAuburnAustralian Federal ElectionsCedunaClareCumminsDroughtsEdithburghFarmersGovernment FundingKadinaKimbaMagillMaitlandMinlatonPeterboroughPort AugustaPort PiriePriceRegional CommunitiesRural and Remote CommunitiesSmall BusinessesSnowtownSpaldingWarookaWater SupplyTop StoriesAustralia faces a 'lonelier' world with rules-based order crumblingTopic:National SecurityPhoto shows Two men wearing glasses and suits behind the backdrop of the world map.Data shows shift in views towards Australia's relationship with US and ChinaTopic:Foreign AffairsThere's a reason Dutton can't resort to a scare campaign with older AustraliansAAnalysis by Annabel CrabbHolmes à Court fuels movement that denies he'll have seat at the tableTopic:Political Parties and MovementsFinal campaign dash as Albanese sweats on Dutton suburban fightbackTopic:ElectionsJust InNationals candidate Andrew Lethlean under pressure over lapsed liquor licenceTopic:Elections15m ago15 minutes agoWed 30 Apr 2025 at 12:00am'Foal beats coal' in land use fight that divided a communityTopic:Coal50m ago50 minutes agoTue 29 Apr 2025 at 11:25pmAlleged triple-murderer Erin Patterson's trial over mushroom lunch beginsLIVE52m ago52 minutes agoTue 29 Apr 2025 at 11:23pmAmbulance Victoria admits to second illegal COVID-era gatheringTopic:Emergency Services58m ago58 minutes agoTue 29 Apr 2025 at 11:17pmMore Just InBack to top