The Productivity Commission’s recommendation to remove Exceptional Circumstances drought assistance without replacing it with a significant instrument to encourage drought preparedness would leave farmers completely high and dry, according to AgForce president John Cotter.
Mr Cotter said the wholesale adoption of the commission’s recommendations released today would be devastating for producers.
The recommendations would remove existing support and substitute it with capacity-building options but no financial incentives.
“If adopted, this would take away more than its returns to rural Australia at a time when families are either still in prolonged drought or just recovering from it.
"That would be a disappointing body blow to many producers,” Mr Cotter said.
Some substantial preparedness policies and improved arrangements in relation to the Farm Management Deposits scheme are needed.
“We were looking for the inclusion of financial and taxation instruments to encourage farmers to physically prepare their properties for drought - the absence of any recommendations along these lines is concerning.
“Research, training and human capacity-building will not work alone without incentives for better preparedness such as taxation breaks or subsidies to make capital improvements like building bigger water storage capacity or fodder reserves."
At least, Mr Cotter said, it was reassuring the Government has given an iron-clad guarantee that it would not withdraw EC until the current drought is over.
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