News 
 National Rural News 
 Grains and Cropping 
 General 
 Wheat funding branded a 'slush fund' 

Wheat funding branded a 'slush fund'

BY LUCY SKUTHORP
14 Jan, 2009 02:09 PM
Money to help wheat exporters find new markets started flowing this week, yet opponents of the new marketing arrangements put in place last year say the money is nothing more than a "slush fund".

Federal Minister for Agriculture, Tony Burke, this week opened a new grants scheme, the Wheat Export Technical Market Support Grants Program, which he said would help exporters develop new markets for Australian growers "to maximise the benefits of the new, competitive wheat export marketing system".

The Government committed to the scheme last year after it was recommended by an independent advisory group and falls under the Government's $9.3 million transitional assistance package promised when the single desk for wheat exports was dumped in favour of free marketing last year.

Mr Burke said while money would be available to all exporters, priority would be given to new or smaller exporters or niche marketers.

"It is designed to support innovative export ideas which establish long-term sales relationships, rather than one-off sales or new product development," Mr Burke said.

"The Government wants to help exporters take advantage of the opportunities available in the new marketing environment which has given choice to growers for the first time in 60 years."

But single desk crusader and staunch opponent of the new marketing arrangements, Jock Munro, from Rankins Springs in NSW, said the Government was throwing money at exporters in an attempt to get the new system to work.

Mr Munro said there was plenty of evidence that farmers were cutting back their wheat production plans for 2009 because of "the realisation of what a deregulated wheat market means".

He said the risk, uncertainty and no guarantees their wheat could be sold meant farmers would continue to turn away from growing it.

"The Federal Government has given the industry away to exporters, now they're throwing money at them to try and make the system work," Mr Munro said.

"Those exporters will then be out there competing with each other, and it is flawed to provide grants to smaller exporters because they won't be able to handle the risk or uncertainty."

Each exporter can apply for up to $60,000 in assistance, with applications for the first round of assistance closing on January 31.

Print
Increase Text Size
Decrease Text Size


FarmOnline National News Bureau, Parliament House, Canberra
Source: http://www.farmonline.com.au

comments


Date: Newest first | Oldest first
Are you for real Jock? Where is this 'evidence', you speak of? Twelve months ago you were saying farmers would not grow wheat if the market was de-regulated. The Aust Financial Review Jan 13th 2009 reports that the wheat acreage was up 9.8% last year. Production was up 53% for 2008/09 and export tonnage will be up 43%. The value of wheat exports will also rise by 56% on 07/08 to $4.68 b. Does not appear to be an industry in decline to me.
Posted by W.A. observer, 14/01/2009 5:25:11 PM
The new wheat marketing system has cost growers over a Billion dollars in lost returns as traders gouge out huge profits by purchasing grain from desperate growers and then making more money by hedging the wheat extracting $50 or more extra. The system has to be scrapped and a not for profit grower owned and controled Coop with all profits given back to the growers. This system could also bring back the National Pool. Under the WEMA AUSWHEAT plan we could of had that system working now. Forget about the traders Mr Bourke; back the poor bastard that grows the export grain for below the import parity price on offer by these ruthless companies.
Posted by Mark, 15/01/2009 5:57:24 AM
Without the National Pool we have lost the golden rewards, we pay higher freight rates, we are going to have to pay for the demurage cost, we have no National Pool Hedging and in a year like 08 early hedging could have put a lot of money in growers' pockets. I am not writing about going back to the old AWB Single Desk; I am saying the Labor Government stopped growers from developing a system that added value and returned the profits to growers not the greedy traders. It is not too late. Mr WA observer watch this space, as in NSW the acreage planted this year will most likely be reduced by around 50%. I don't know about you but I cannot continue to sell grain for less than the cost of production and after 8 years of drought not many banks will allow it either. Property sales are on the rise and banks refusing carry on finance to growers has taken a dramatic increase, as well as banks not offering Crop Liens due to the high risk with not having a National Pool. Agriculture is in for a hard ride the next 12 months in NSW and I have been told WA is not much better. This Government is determined to kill the golden goose by strangling it to death with bad Policy.
Posted by Mark, 15/01/2009 9:54:42 AM
What next Jock - a return to the White Australia policy too? We have all heard these arguments for years, and the fact is that growers, the industry, and the trade have moved on. I still think you should take up Wilson Tuckey's challenge and disclose to the public how many tons you have delivered into the AWB pool over the past 5 years, to put all your puff and wind into perspective.
Posted by WA Trader, 15/01/2009 10:56:23 AM
WA observer. You are referring to your state which is bucking the national trend. Australian wheat plantings are in decline which will continue due to the increases in risk and costs the demise of the single desk has delivered to the grower who was already over burdened with both. In eastern states, governments have also got away with neglecting railway infrastructure necessary to efficiently transport grain to port for decades (and now cite cost as the reason for failing to bring it back to standard and essentially abandoning it) forcing more trucks (which are far less efficient than rail transport) onto our (inadequately maintained) highways. The federal Govt is intent on taxing the daylights out of heavy vehicles (citing damage caused to roads) with ridiculous annual registration fees! Road transport rates increase accordingly as do cost of products bread etc. to the consumer. Without the immediate formation of significant grower cooperatives, the demise of single desk will reduce wheat growing to a cottage industry. Growers already have enough on their plate growing their comodity. Demise of the single desk has fragmented growers strength and certainty and set them on a collision course with each other. Traders are gouging huge margins for now doing what the single desk did for a lower fee. The biggest risk takers in this stupid policy are growers, who are now significantly worse off. I agree with Mark, "This Government is determined to kill the golden goose by strangling it to death with bad Policy."
Posted by CQ, 15/01/2009 1:45:44 PM
Dear oh dear, once again we hear all the lines about how the WEMA was going to conjure up a new farmer co-op with no money, no capital base, no staff and no capacity to do the job. It was a fantasy from day one. The fact is, there are grain farmers looking to expand their operations here in WA. Interest rates have fallen considerably and there are competent farmer businessmen and women that can adjust their operations as required to manage seasonal adversity. If you can't or won't upskill yourself to manage price risk, don't complain because others are.
Posted by W.A. observer, 15/01/2009 2:10:47 PM
?? Wheat Export Technical Market Support Grants Program, or WETMSGP for short....wasn't a single desk marketing system simpler?
Posted by Bluey, 15/01/2009 2:35:42 PM
CQ, if the acreage of wheat along the east coast is decreasing, which I doubt, have you ever considered the fact that the crop options tend to be more diversified in Vic, NSW and Qld? Summer cropping is an option for the north of NSW and into Qld (sorghum, cotton not possible in WA) and there are expanding intensive animal industries (chooks, pigs and cattle) that need millions of tonnes of grain each year, not necessarily wheat. As to grain leaving the rail network, yes the system has suffered from under-investment over many years by both sides of politics. However, many of the brach lines now run the wrong way for getting grain to the feedlot and the flour mill. Projections show that the East Coast may not export any grain in 10 years time. Grower co-operatives? Nothing is stopping you forming one today with likeminded growers. Just don't think you can make it compulsory.
Posted by W.A. observer, 15/01/2009 5:14:14 PM
Totally agree with W.A observer. If the area of wheat planted in '09 is reduced it will have nothing to do with the single desk. Poor seasons, high inputs etc. The demise of infrastructure is an issue, but if the single desk was still here branch lines would still be terrible. There are parts of NSW that have had very good cropping season. Central NSW and the North West have had record seasons even with some weather damage factored in. These areas like parts of WA see a bright future for the wheat industry and are expanding in both technology (zero till, controlled traffic, GPS, weedseekers etc) and area cropped. This is not a cottage industry. Maybe wheat growing at Rankin Springs may become a cottage industry or has it always been!
Posted by Bob, 15/01/2009 6:50:29 PM
WA observer? Wilson?
Posted by Mark, 16/01/2009 6:41:31 AM
1 | 2  |  next >

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
Related Coverage
ARTICLES
14 January, 2009
  Coal cut-backs offer grain gains
13 January, 2009
  Bears run grains market as supply is ...
  Mangelsdorf resigns from GGA board
14 January, 2009
  Farm groups want more harvest ...
  Farmers urged to control summer weeds
  Growers hold aces after poor '08 deal
POLL
Q: Are you satisfied with how your industry body is spending your producer levies?

Yes
(16.7%)

No
(74%)

Undecided
(9.3%)

Total Votes: 365
Poll Date: 12 January, 2009

Most popular articles

1.  Water report sparks debate
2.  Queenslanders switch to sunnies
3.  Live ex company corrected breaches
4.  Wheat on big rise
5.  Time to act on roos: Katter
6.  Fat chance for heifers
7.  QGC chips in at Chinchilla
8.  Exporters praise PM's support
9.  Seeney moves into "golden age" room
10.  Relentless Maroons give NSW another dose ...



Queensland Country Life







Weather brought to you by:

Weatherzone

Navigate

Home
News
Opinion
Weather
Community
Classifieds
About Us

Classifieds

Jobs
Real Estate
Auto

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
Email a FriendEmail a friend
 SAVE...
FavouritesFavourites
Del.icio.usDel.icio.us
 SHARE...
FacebookFacebook
DiggDigg
StumbleUponStumbleUpon
MySpaceMySpace
RedditReddit
NewsvineNewsvine
LinkedInLinkedIn
KwoffKwoff
TwitterTwitter