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 Clouded future for drought support 

Clouded future for drought support

21 May, 2009 12:16 PM
THE Government insists it will keep providing drought support to farmers currently receiving assistance, despite last week's Budget papers revealing a reduction in drought expenses over the next two years "due to the cessation of drought programs".

There has been a war of words between the Government and the Opposition over drought support in the week since the Budget was delivered, with the papers not supporting the Government's repeated position that the rug would not be pulled from under farmers still receiving exceptional circumstances drought support.

The Government has allocated $715 million in 2009-2010 for drought assistance.

But it has come under fire from the Opposition's John Cobb for not providing funding forecasts in the Budget's forward estimates.

These figures, however, have never been provided by either side of politics because unknown seasonal conditions and demand for help mean the money can only be allocated year to year.

Despite this, the Opposition has taken issue with a line from this year's Portfolio Budget Statements paper which specifically outlines a reduction in drought program expenses.

It says "the reduction in expenses between 2009-2010 and 2010-2011 is due to the cessation of drought programs".

Nevertheless, the war of words continues with Mr Burke alleging in Parliament last week that The Nationals were "incorrectly telling farmers their drought support would be cut off".

"The Rudd Government is continuing drought support for Australia’s farmers," Mr Burke said.

"It is important to help farmers in times of unforeseen difficulty, to provide support to their families and businesses.

"No-one from the National Party checked with me or my office before telling 20,000 farmers that their drought assistance is ending – which is absolutely untrue.

"We have been absolutely clear – we will not change the drought support system for farmers currently receiving assistance."

The Government last week tabled the final Productivity Commission report examining drought assistance.

Unlike its draft, the final report has done away with a recommendation to cease all drought assistance in June next year.

The tabling of the report means the Government can now move ahead with finalising reforms to drought assistance, which will be more focussed on drought preparedness and adapting to climate change.

The Government yesterday also announced a further $6.3m for farmers to help adapt to climate change.

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comments


Date: Newest first | Oldest first
The proper way to give drought support is to pay farmers the true value of their produce in good times so that they can make provision for drought.

Remember the true value is the true cost, which = the price + the subsidies.

We don't get the subsidies, so we don't get the true value.

Posted by Ted O'Brien, 21/05/2009 6:41:31 AM
There has been a constant erosion of funding to farmers such as grants for irrigation, rebates on scanners, fodder and stock transport rebates have ignored the real cost increases suffered by farmers.

No one mentions the fact they keep changing the ground rules for application eligibility for many of the grants designed to implement changes on farm to cope with drought down the track and to help farmers diversify. Don't kid yourself everyone...they are whittling away at us...often so silently we don't notice...until you become a victim of it and discover you are no longer eligible.

Posted by Jenny Bird, 21/05/2009 6:51:09 AM
Do you think most farmers would prefer to give up all grants/subsidies etc and in return pay lower taxes - that is less government intrusion in their daily lives?

Surely this would improve efficiency - best practice farmers would be more likely to succeed.

Posted by tonypolony, 21/05/2009 5:20:05 PM

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