Federal Budget does not grow in agribusiness estimations - farmers federation

LAST week’s Federal Budget spared the agricultural sector from significant budget cuts that would have jeopardised the sector’s productivity and profitability – according to the Queensland Farmers Federation (QFF) – but it also failed to deliver on anticipated reforms.

QFF said the reform measures were expected to set out a plan for growth into the future and adequately recognise the sector’s broader contribution to the national economy.

According to research by the agribusiness organisations that make up the QFF, the most notable new measure in the budget is for $99.4 million for a Farm Household Allowance over four years, to support farmers through drought.

  “It follows the recent announcement of Farm Finance, which would provide $60 million over two years to help fund concessional loans for Queensland farmers,” a QFF spokesman said. “The Budget confirms the transition to a new range of drought support measures, which are due to begin on July 1, 2014. QFF received a briefing last week on the Farm Household Allowance payment, and QFF will be briefing members on the issue at the QFF Council meeting this week.”

QFF did welcome the confirmation in the budget of the $200 million extension to the Reef Rescue program, which has achieved major outcomes for Queensland farmers and the environment in catchments along the coast.

However, the new measures in the Budget have been offset by a number of cuts to other areas of government.

Much of the $99.4 million for the Farm Household Allowance has been diverted from the Caring for Our Country (CFOC) program.

QFF said this program provides crucial support for farmers to partner with the government to undertake natural resource management, and any cuts to this program will have negative repercussions for industry and the environment.

The government is also reducing CFOC by a total of $140 million over the next five years.

There is a reduction in funding of $4.1 million to Plant and Animal Health Australia, with cuts forecast to reach $8.1 million by June 2017. These are in addition to a $34.6 million cut to quarantine and export services last year.

QFF also noted cuts to all departments, but specifically to staff working on quarantine and export services and Austrade staff.

Another issue is that the cost of applying for a 457 visa will increase from $455 to $900, which is expected to raise $198 million over four years. For many farmers, 457 visas play an important role in tackling the skills shortage facing regional areas, and moves to make these visas more expensive put the efficacy of these visas at risk, said QFF.

WET TROPICS RESOURCE

QFF lodged a submission on the draft Wet Tropics Water Resource Plan last week. The key issues addressed relate to concerns farmers have in the Upper Catchments about the availability of water that they will have when the plan is implemented.

For example, the plan proposes conversions of eight megalitre per hectare in most of these catchments but dairy and vegetable farmers indicate that they can use up to 10 megalitres per hectare. The Plan makes allowance for farmers to apply for up to 20 megalitres of additional water for uses other than irrigation such as dairy wash down, fruit packing sheds and for watering of dairy herds.

QFF is asking in its submission that issues such as water pumping rates be further examined with farmers before the plan is finalised “to ensure all has been done in the final plan to avoid any adverse impacts on existing farming operations”.

RAIL FREIGHT FOCUS WELCOMED

On state issues, QFF has welcomed the announcement from the State Government that it will work to improve the process of taking bulk commodities out of trucks and off the roads, and into trains and on railways.

The State Government announced this week that it would invest up to $50 million on passing loops on the Toowoomba range and up to 20 additional train paths per week will be made available for rural freight.

“This move follows a huge plummet in recent years in the agricultural sector’s ability to get time on the tracks to move rural commodities such as grain to the port of Brisbane,” a QFF spokesman said.

“Solving agricultural freight issues is both complex and expensive and this announcement will help contributing to a positive end result.

“QFF also seeks the government to address a range of other infrastructure issues affecting the sector such as the deterioration of a number of railways lines across regional areas, some of which have been inoperable for years from flood damage.

“The much-talked about ‘missing link’ rail line from the Downs north to Gladstone would also provide another avenue for rural freight, provided that this rural freight was able to get access to the tracks.

“The announcement last week shows very positive signs that the Minister for Agriculture and the Transport Minister are working together to look at pragmatic solutions, and QFF looks forward to working with them further on the details of the plan and the longer term complex issues, while promoting any opportunities for farmers to take advantage of improvements as they arise.”

www.qff.org.au

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