Agforce CEO Charles Burke

February 26, 2014

Today’s announcement by the Federal Government of a $320 million drought assistance package has been warmly received by producer groups.

AgForce CEO Charles Burke welcomed the assistance saying it reflected acknowledgement by the Federal Government of the financial and personal impacts of the drought on affected producers.

However it did not address all the measures requested by producer groups, including direct wage assistance for farm workers.

Mr Burke said it was vitally important that funds were now distributed “as soon as possible and that access to this assistance is streamlined without the need for onerous paperwork by applicants”.

He said the changes in asset test eligibility acknowledged the “unique circumstances” of farmers and would help to increase the number of farmers that would be able to access these funds.

“From March 3, 2014, farmers with up to $2.55 million in net farm assets will be eligible to apply for this crucial assistance, a significant increase on current limits,” Mr Burke said.

The total funding of the concessional loan scheme has been expanded to $280 million; however the interest rate reduction was not as substantial as anticipated, with 4 per cent loans over five years expected on offer.

NFF President Brent Finlay said the announcement demonstrated that the government had listened to the NFF’s call for a short-term drought relief package and had delivered many of the measures proposed by the organisation.

“We welcome the government’s commitment to bring forward a package that is both fiscally responsible and considerate of circumstances suffered by rural communities in many parts of Australia,” Mr Finlay said.

“We thank the Prime Minister for his recent visit to drought-affected regions. We commend Minister Joyce for his continued efforts as a champion for Australian agriculture. We also appreciate the bipartisan approach from Shadow Minister for Agriculture Joel Fitzgibbon,” he said.

He said the measures delivered would address many issues faced by farmers in drought, including rising debt levels, capacity to make household payments, limited water for livestock, personal stress, and managing pest animals.

Queensland Agriculture Minister John McVeigh said the package would keep jobs in the bush.

“More disposable cash in farmers’ pockets means they can meet their local bills in town and get rural communities and economies going again,” Mr McVeigh said.

“This assistance is for here and now, there will be a long recovery time so will still need to discuss long-term drought policy with the Federal Government at the right time. The Prime Minister recognises agriculture has a great future beyond this drought.”

Mr McVeigh said the loans up to $1 million would allow eligible farm businesses to refinance existing debt at a lower interest rate and would cover up to 50 per cent of eligible debt.

“I’m also very pleased the Federal Government has brought forward the new Farm Household Allowance, starting March 3, which will put food on the table and help pay the bills,” he said.

Mr McVeigh said other measures included an extra $12 million for water infrastructure, and for Queensland this would mean an additional $6 million to the Queensland Government’s Drought Relief Assistance Scheme.

“Their extra $10.7 million for Mental Health programs will help support people suffering from depression, and the $10 million for control of feral animals, particularly wild dogs will be very welcome in Queensland.”

Federal Member for Maranoa Bruce Scott said comments from his electorate’s farmers were used to model the package.

Mr Scott said income support payments would give farming families a small reprieve from the immediate financial stress of the drought by covering some household expenses.

Additional funds allocated for pest management would also be a welcome reprieve for drought-declared farmers.

“The further federal assistance for pests will be distributed through existing State Government initiatives and will prop up pest management efforts throughout the electorate, particularly those against wild dogs and kangaroos,” he said.

However State Member for Mt Isa Rob Katter said he was “underwhelmed and disappointed” with the package.

“Although $300 million funding sounds good, the majority of it is in concessional loans at 4 per cent interest. This is only 0.5 per cent less interest than was previously offered, and quite frankly it’s not what drought-devastated graziers need,” he said.

“They actually need cash grants so they can afford to buy groceries for themselves and truck in food and water for their stock.

“That is how dire the situation is, and that is what we’ve been asking for, for months now.”

Mr Katter said if it was a fire or a flood, money would be made available as it has been in the past.

“Because it’s a drought, politicians just don’t understand,” he said. “I’ve stopped calling it a drought; as far as I’m concerned it’s a rural crisis because it impacts right across rural communities.”

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Today’s announced measures include:

  • Easier access to household income support from March 3 (for farmers with up to $2.55 million in net farm assets)
  • Further funds made available for concessional farm loans ($280 million, expected to be 4 per cent loans over five years for 50 per cent of eligible debt up to $1 million per enterprise)
  • Assistance to States for wild dog and other pest animal control through local NRM groups ($10 million)
  • Additional assistance to States for water infrastructure grants ($12 million)
  • Funding for increased social support and mental health service delivery ($10.7 million)
The Queensland Rural, Regional and Remote Women’s Network (QRRRWN) urged farmers not to “self-assess” their eligibility for assistance and access support if the forms were “overwhelming”.