The National Farmers' Federation has raised serious concerns with state and federal governments about the drought concessional loans program, arguing that it has not delivered effective financial relief to stressed farming businesses.As revealed in Banking Day last week, only 126 farmers secured loans through the program in the ten months to the end of August, with another 111 applicants missing out altogether.While the Federal Government funds the program, farmers' applications are assessed and administered by the States and Territories.In a yet-to-published submission to an intergovernmental inquiry into drought relief reform, the NFF said it wanted governments to broaden the types of assistance provided to drought-stricken farmers because the concessional loans were not always delivering appropriate relief.The NFF's general manager of trade and economics, Scott Kompo-Harms, said the peak body was also concerned that state and territory governments have been slow to distribute loans."Concessional loans could be useful for helping farmers to prepare and recover from drought," he told Banking Day."However, they are not the most useful tool for farmers in the midst of a drought."Kompo-Harms said the concessional loans program was problematic partly because the application process varied significantly across state jurisidictions."Given that farmers expect there to be a long lead time for approving loans, many simply can't be bothered entering the process," he said."Some farmers in the midst of a drought are also baulking at the idea of taking on more debt even at a concessional rate of interest."The NFF wants the types of financial relief available to drought-affected farmers broadened to include subsidies to cover costs of transporting fodder and water to farms.Kompo-Harms said the Commonwealth's proposed Rural Investment Corporation should administer such broader measures."If the bill to set up the rural investment bank passes parliament, it would also create an opportunity for the concessional loans to be distributed in a more streamlined way," he said.The government plans to launch the RIC, otherwise known as "Barnaby's Bank", from the beginning of July 2018.Cross-bench senators have not indicated whether they support the idea of a rural investment bank.