The average farmer in Australia will miss out on the Government's $5500 climate change adjustment grants because of a means test cap on the value of the family farm, meaning anyone with a farm worth above $1.5m is ineligible for funding.
The adjustment programs were established by the Federal Government to provide assistance for farmers to manage the impacts of climate change if it adversely affects their farm business.
The assistance is designed to provide training programs, adjustment advice, and assistance for farmers while they consider their future in farming and assistance will also be available to farmers who decide to leave farming.
The adjustment program is part of the Government's $130m Australia's Farming Future program.
The Department of Agriculture confirmed this week that there is a $1.5m cap on net assets which includes all on and off farm assets minus all on and off farm debt.
The Department confirmed the assets cap is applicable to the Climate Change Adjustment Program, as well as the Transitional Income Support program announced in the budget to provide temporary assistance to farmers when their region is no longer considered drought declared and exceptional circumstances assistance ceases.
But according to ABARE statistics, the average broadacre farm business equity (the farm capital minus the farm business debt) at June 2007 was $3.08m.
Not including the debt, the average capital value of broadacre farms is $3.34m.
Minister for Agriculture, Tony Burke, said the adjustment and transitional assistance measures were additional to what is already being provided through the exceptional circumstance program.
He said the programs provided "modest levels of assistance" for those farmers in the greatest need.
The Opposition's spokesman for agriculture, Nigel Scullion, said the imposition of a means test will deny many Australian farmers assistance to adjust to the impacts of climate change.
"The new program promised farmers grants up to $5500 to fund training to update or acquire new skills to manage the risks of climate change," Senator Scullion said.
"In what is becoming a pattern with this government, the Minister has again launched a program with much fanfare and self promotion, but when you read the fine print, you learn that there are strings attached that render the promise next to worthless."
Senator Scullion said Mr Burke needed to learn that farming is a capital intensive industry.
"Land, machinery and implements all add to your asset list but do not result in disposable income," he said.
"The strong property values coupled with the prolonged drought have left many farmers in an asset rich but cash poor position."
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