If the Federal government were to adopt the recommendations of the Productivity Commission’s draft report into drought assistance for farmers and rural businesses will will see many rural communities decimated. Farmers will abandon some properties and small rural communities will become ghost towns.
Sensationally the report that reads like the work of the ‘grim reaper’ recommends that all current drought assistance being paid should be be scraped by June 2010 regardless of the season conditions that prevail between now and then.
Under the Commissions shock recommendations the only assistance available to farmers after 2010 will be income support (dole), which will be means tested, only available after any Farm Management Deposits have been used and only for a maximum 3 year period. Farmers will also have to go through a full review each 6 months to continue to receive assistance.
Small Businesses in Rural towns will receive nothing in the way of drought assistance.
The report recommends:
- Doing way completely with current interest rate subsidies by June 2010.
- Income support at the same level as the dole be would be only available to individual farming families for 3 years in any 7 year period.
- Income support to be reviewed every 6 months
- Income support only available to farmers with overall assets, (including the Family Home on the property) worth less than $3 million.
- No assistance will be available for rural businesses.
- The $150,000 farm exit grant to be scrapped from June 2009.
- Farm Management deposits to be retained, but should be drawn down first before farmers are eligible for any other assistance.
The reports recommendations reveal a bleak outlook for drought stricken farmers and rural communities.
Commenting on the report Acting Ag Minister Martin Ferguson guaranteed that existing rules of exceptional circumstance would not change for anybody currently receiving assistance.
The Commissions final report is due out in February 2009.
Since 2002 approximately 30,000 Australian farmers have received drought assistance totally over $1 billion dollars.
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