In North Queensland, the rain is slowly starting to ease and flood waters are subsiding which means the the mammoth clean-up is beginning.

The Federal Government has announced this morning that disaster loans have been activated for flood affected farmers, small businesses and not-for-profits, but they will have to pay interest.

Peter Fegan has slammed the government for charging interest on disaster loans for flood-impacted farmers.

Federal Minister for Emergency Management Senator, Jenny McAllister told Peter Fegan on 4BC Breakfast, "It's a really modest rate of interest, it's usually around two per cent."

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