June 14, 2016
The 2016-17 State Budget includes several measures aimed squarely at Queensland’s rural sector.
Agriculture Minister Leanne Donaldson said Farm Debt Mediation legislation would be introduced to require banks to conduct a formal mediation process with farmers struggling with debt.
“Having a legislated mediation process before bank enforcement action can deliver more positive outcomes for all parties,” she said.
An Office of Rural Affairs will also be established within the Department of Agriculture and Fisheries to better advise government, a move recommended by the Rural Debt and Drought Taskforce.
And stamp duty has been removed on transfers of farms between family members, bringing Queensland into line with other States and Territories and removing an impediment to succession planning.
The Budget has also allocated a combined $77.9 million for Drought Assistance Package and Rural Assistance Package.
A million dollars has been set aside over three years to assist rural producers to seek advice on farm financial management, climate risk mitigation, succession planning and/or to undertake multi-peril insurance assessments.
Ms Donaldson also flagged changes to the QRAA to improve the State Government’s concessional loan program.
“QRAA is to be reconstituted to become the Queensland Rural and Industry Development Authority (QRIDA) with an expanded Board charter and improved flexibility,” she said
“In addition, the Primary Industry Productivity Enhancement Scheme (PIPES) loans will be enhanced to reflect the higher capital requirements in agriculture.
“This includes doubling the Sustainability Loans for up to $1.3 million and increasing the First Start Loans to up to $2 million (up from $650,000).
“We will also investigate widening the scope of PIPES to the post-farm gate sector.”
The Budget also includes almost $7 million funding over three years for pest and weed management programs, including further assistance for producers to build wild dog fences.
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The updated Drought Assistance Package provides $41.921 million in 2016-17, including:
- $24.071 million for the Drought Relief Assistance Scheme
- $4.2 million for land rent rebates and water licence waivers
- $4.0 million for grants under the Community Assistance Program
- $4.0 million allocated for the Drought Relief from Electricity Charges Scheme
- $1.5 million for the Royal Flying Doctor Service drought well-being service
- $650,000 for the State contribution to the Rural Financial Counselling Service, including an additional two positions while this drought lasts
- $3.5 million for a new Queensland Climate Risk and Drought Resilience program
A Queensland Climate Risk and Drought Resilience program will also be established with the aim of improving farm business capacity, seasonal forecasting and help producers be better prepared for risks such as drought.
Included in the Drought Resilience Program are:
- The establishment of the Queensland Drought Mitigation Centre in partnership with the University of Southern Queensland which will work with national and international climate modellers to improve seasonal forecasts for northern Australia
- Research into improving predictions of multi-year droughts and decision support tools through the Department of Science Innovation & Technology (DSITI)
- Programs to help Queensland agriculture adapt to future climate scenarios through improvements to regional climate change forecasts and practical, local adaptation strategies for our agricultural industries.
The Budget also includes funds for the rollout of changes to the Biosecurity Act.
An extra $10.8 million has been set aside over four years to begin implementing the recommendations of the Biosecurity Capability Review.
Ms Donaldson said a five-year biosecurity strategy and action plan that outlined the roles and responsibilities of all key stakeholders within the biosecurity system would be launched.
Budget Wrap-Up:
