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Rain forecast positive, but cash crucial

Drought-affected farmers will know better than to have their hopes raised too high by the latest three-month forecast from the Bureau of Meteorology.

It says that for most of Australia the odds of a wetter than average three months ahead are 50pc or better in some cases.

But that is much the same as the forecast at the start of winter, when some good falls and a good forecast encouraged farmers to plant a record crop in the belief that the drought was finally over.

Alas, the coin has again fallen on the 'tails' instead of 'heads'. The season has failed, and fewer and fewer farmers are able to double up their bets on another 50:50 forecast.

The situation is now incredibly dire - irrigation allocations are next to nought, livestock are flooding the markets, and this year's crop is all but gone.

The Government is right to again relax its criteria and expand its cash payments under its exceptional circumstances drought assistance policy.

Those measures should provide relief to more farmers than ever before, but the question again remains whether those promises will be borne out in reality.

The Federal Government has relaxed those criteria three times in three years, each time with the promise of easier access. And while this has been true, many farmers have still found it difficult to get their hands on the much-needed assistance.

And while cash is vitally important to keep rural communities alive, this time it may be too late for some.

The prospect that permanent plantings could die will mean the effects of this drought - and the taxpayer bill - will continue for many years to come.

* What do you think of the Federal Government's new drought package?

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Comments


Date: Newest first | Oldest first
Farmers don't want handouts.

That won't guarantee rain or productive capacity into the future.

What farmers need is help in determining just how we adapt our agricultural systems to remain food productive in a drying future.

Should we be growing crops we aren't familiar with?

GM drought-tolerant crops, perennial pigeon peas, sandalwood, dates, saltbush?

Let's think outside the box ... but more importantly understand that the majority of farmers are in their 50s and the process of change requires a great deal of risk taking and requires energy levels that will certainly not be there.

Unfortunately, after this drought most will have very poor motivation levels.

If the government can't see any answers, what hope have an aging farming population got?

Posted by Grain Farmer on 26/09/2007 8:55:53 PM
Would be most interested to know what makes up the other $120 billion exports. Minerals +???
Posted by Dave on 27/09/2007 2:02:52 AM
The forgotten few. Those of us who fall outside the Centrelink drought assistance have now to sell our assets to survive for the next few years.

Living on credit because we have off-farm assets just over their requirements.

We have fallen through the cracks. Viable but no cash flow having to liquidate assets to survive. Assets we have put aside for retirement.

Posted by swheaty on 27/09/2007 7:18:59 AM
Regarding the complaints from the pork,eggs etc producers about their costs being driven to all time highs by current grain prices.

Surely this is the time to educate consumers that they have been living in a false paradise of cheap and readily available food on the supermarket shelf and actually need to pay the real cost.

Bear a thought for the grain producers who have been supplying at or below cost of production for many years, effectively subsidising those who use and consume grain.

How about as a total industry called Australian Agriculture we band together and support strong sustainable returns for all sections of the food chain rather than try and knock down those at the primary production end.

Current grain prices are good and if sustained will allow much needed debt reduction and business and infrastructure advancements to be undertaken.

Surely this has to be in everyone's best interest in the long term .

Let's work together !!

Posted by Peter Thompson on 27/09/2007 5:31:00 PM
Perhaps Dr Botrill would like to pay interest on borrowings, maintain a productive asset base and exist on the level of welfare she refers to as "normal".

Many rural businesses DO NOT recieve EC help and having food on the table does not help when you have lost the roof over your head.

Posted by AFarmer on 28/09/2007 4:52:31 PM
When a small business owner finds his/her business unviable due to circumstances outside of his/her control, the government typically doesn't see fit to provide welfare payments to 'see the owner through'.

That person no doubt has fixed charges to cover as well, but covers them by liquidating assets etc.

In other words, cuts their losses and moves on.

Why are farmers any different from any other small business?

What's the difference between a lack of rain (an input for a farmer) and a skills shortage (an input for a small business owner)?

If farmers are a special case, let's hear why. If as a nation we have given added weight to this sector of the economy for social or historical reasons, policy makers should be up front about that.

Trying to pull the wool over the eyes of the vast majority of the population who are not farmers, and do not live in the regions, will only result in harm to those who this policy is designed to protect.

There will be a backlash from those who's taxes pay for this, and it won't be pretty to watch.

Posted by economic rationalist on 28/09/2007 7:27:34 PM
The water crisis in Australia is increasingly about governance and retention of public ownership and management of this vital natural resource, the last of the 'commons'.

The communities that have grown around the availability of water will have to think and act fast to survive and mostly, this can happen with the fast rollout of broadband services to enable diversification into a range of small and medium businesses.

Meanwhile, we do have to rethink agriculture and look towards sustainable agriculture, including more production closer to population centres capturing and utilising storm water runoff.

As far as the Snowy Scheme is concerned, the three government shareholders at this stage must legislate to secure a limited market niche for Snowy Hydro energy sales to maintain the system and return the focus to water security.

Over 95% flows from the Snowy are diverted to the west.

Imagine if the reverse situtation if 95% of flows from the Murray and Upper Murrumbidgee were diverted into the lower Snowy for agriculture across southern Victoria!

The reality is that whilst we wonder when it will rain (and indeed light falls are gracing the mountains at this hour - 12 noon 28 September) however be assured that the evaporation rates due to high UV intensity and global warming will mean that the snowpack will not deliver as much water for farming.

The 2003 bushfires (also a signal for global warming wars) significantly damanged the water catchment and critical sphagnum moss communities, further reducing their water retention and reticulation capacity.

The Snowy Scheme is nevertheless vital to our future water security.

The privatisation by stealth of our public water resources, the introduction and over allocation of irrigation licences ostensibly as a revenue raiser for government/s and door opener to water trading and privatisation is a major travesty of water governance and justice.

I would like to call for an immediate audit and tabling in the NSW Government of all water licences issued over the last 5 years and water sales including potentially Halliburton for sequestering in the Adelaide Aquifers if this is indeed what happened.

Transparency and scrutiny is essential.

As far as people in the Snowy Mountains are concerned since Australians stopped the sale of the Scheme, Snowy Hydro transferred massive volumes of water from Lake Eucumbene and Jindabyne and continue to hide - along with the NSW Government - behind the 'commercial in confidence' defence where it is impossible to scrutinise their decisions and behaviour.

This is no longer acceptable and now is the time for reform of water governance, including water committees at the tributary level and representation by communities from the Murray Darling and Snowy on the Snowy Hydro Board and Ministerial Corporation.

The NSW Government fails to respond to requests for such representation and has avoided establishing the Snowy Scientific Committee that would deliver the scientific evidence for decisions pertaining to water releases and environmental flows.

Sadly, many communities now suffer from the water trading regimen that robs natural flows from rivers and wetlands, that does not deliver high security water to permanent plantings, that can and has probably on sold vital water to companies who are able to sequester that water without reference to Australia's food security and without any strategy in place to protect the Sunraysia and other communities.

We need visionary and strategic thinking for water management, not a privatisation agenda masquerading as government and pretending reform.

This can only arise from the grass roots with communities asserting their rights under Section 100 of the Australian Constitution to reasonablel rights to water - residents, farmers and the environment.

The water privatisation agenda has robbed those rights from all of us and pretends to interpret 'reasonable', whereas that is a matter for public discussion and determination, not the prevail of one individual.

Posted by Acacia on 28/09/2007 10:04:47 PM
Michael Thomson is the Editor of FarmOnline. He has previously worked as the Canberra Parliamentary Press Gallery correspondent for the Rural Press group of agricultural newspapers, and as a senior reporter with Queensland Country Life.

21/11/2008 | AWI's new board can only succeed in old battles by fighting in new ways.
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