Drought package: Millewa farmer says timing will be critical

A MERINGUR farmer says the Federal Government’s new farm drought loans need to be acted on “within a month” to give farmers a chance to prepare for next season.

Graeme Ruchel said the loans had the potential to provide “breathing space” to farmers, but only if they were able to be accessed quickly.

Prime Minister Scott Morrison unveiled details of a $1 billion drought relief package on Thursday, which centred on zero interest loans for farmers and small businesses, saying the government was “here to keep farmers on their properties”.

Mr Ruchel, who produces wheat and legume, said the funding “definitely” needed to be made available in time for summer.

“We need summer rain to have subsoil moisture so we can hopefully plan for the following year, but every time we have spray delivered its tens of thousands of dollars.

“I definitely would like to know how long it would take.

“There are quite a few different things on offer, but they do take a long time to come into fruition and it has been very frustrating as a farmer.

“I’m not sure the difficulty on applying for these as well, but they need to be acted on — something needs to happen soon.

“We have seen what has happened up in Queensland and New South Wales … it has taken far too long.”

“The (package) is more band-aid effects that appease people to make it look like the government is actually doing something.”
– Mildura councillor Anthony Cirillio

Mildura Council environment and farming sustainability portfolio councillor Anthony Cirillo said the package was simply a “Band-aid affect”.

He said farmers had already exhausted their equity and capital on buying water coupled with “whatever other challenges” existed in their businesses.

“The (package) is more band-aid effects that appease people to make it look like the government is actually doing something,” Mr Cirillo said.

“While (the loans) sound good, they are not the answer.

“They address the symptoms.. they definitely don’t address the cause.”

Mr Ruchel said farmers needed help with council and water rates.

“I think a lot of people have got their backs to the wall and anything that could help alleviate some of those bigger bills, or give people the opportunity, some people may not need it and others will desperately need it,” he said.

“But, the opportunity is there and I think that thing could answer some of the big bills very quickly if that could be taken care of us.”

The government’s announcement included allowances for small businesses to apply for loans of up to $500,000; $10 million for schools facing hardship; $5 million to assist child care centres experiencing decreased demand.

The government will also pump an extra $138.9 million into road projects.

Mr Morrison announced 100 gigalitres of water would be released along the Murray River, which would be made available to farmers at discounted rates to grow fodder.

What’s in the government’s new drought plan?

* Small business drought loans up to $500,000 for wages, equipment and to refinance.

* Farm drought loans which are interest free for the first two years, before being an interest only payment from years three to five. Repayments from years six to 10 are interest and principal.

* $10 million for schools in drought-ravaged areas to help with financial hardship.

* $5 million towards child care centres struggling because families are unable to afford child care.

* Expanded drought communities program, adding six more council areas, providing $122 million for local infrastructure and other drought-relief activities.

*New $50 million discretionary fund to support additional councils when needed.

* Redirecting $200 million from the Building Better Regions Fund to create a special drought round providing up to $10 million per project.

* Roads to Recovery supplementary payment for 128 local government areas in drought (up to $138.9 million) for upgrades and maintenance of roads ready to roll out.

* Releasing 100 gigalitres down the Murray River by April 31, to grow up to 120,000 tonnes of fodder as well as silage and pasture.

* The Federal Government will help South Australia turn on a desalination plant in return, and hand the state $10 million for drought measures.