The Coalition Government has announced a $579 million support package to help Australian dairy farmers who have had their incomes retrospectively cut by dairy processors Murray-Goulburn and Fonterra.
Prime Minister Malcolm Turnbull said yesterday that farming communities had been hit hard and the money would provide much-needed support.
Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce announced the package yesterday and said the Coalition will deliver immediate assistance to dairy farmers in hardship to help them manage through these difficult times and return to profitability.
“I was pleased to meet dairy farmers in Victoria last week and the Coalition wants to send a clear message that the Coalition stands shoulder to shoulder with them,” Mr Joyce said.
The key elements of the support package are:
- $555 million in Dairy Recovery Concessional Loans
- $20 million to fast track the upgrade of the Macalister Irrigation District
- $2 million to establish a commodity milk price index
- $900,000 for an additional 9 Rural Financial Counsellors in Victoria, Tasmania, South Australia and New South Wales
- $900,000 for Dairy Australia’s ‘Tactics for Tight Times’ programme
- Fast tracking Farm Household Allowance applications with 18 more Department of Human Services employees processing claims
- Appointment of a Department of Human Services Dairy Industry Liaison Officer
- Redirection of two Department of Human Services Mobile Service Centres to dairy regions
“The Coalition will be making immediately available $55 million in Dairy Recovery Concessional Loans for Murray-Goulburn and Fonterra suppliers this year, as well as access to $500 million in concessional loans over 2016-17 and 2017-18 years. The recovery loans will be for terms of 10 years,” Mr Joyce said.
The concessional loans will be funded by expanding the drought concessional loan scheme to include dairy-specific criteria.
Mr Joyce said the Coalition was allocating $900,000 to Rural Financial Counselling Services in dairy production areas to ensure farmers receive the farm business financial advice needed, as well as $900,000 to Dairy Australia to continue rolling out one-to-one business advisory support via the Tactics for Tight Times programme.
To help ensure the domestic dairy industry does not in future find itself in a situation where dairy processors unexpectedly reduce farm gate milk prices late in the season; a re-elected Coalition Government will work with the dairy industry to establish a commodity milk price index.
“The Deputy Prime Minister has said that the index would introduce greater transparency and market signals in domestic and global milk prices. The Coalition will consult with the industry on the design of the index that would provide dairy farmers with valuable information for use in supply negotiations with processors and to assist in following international price trends,” Mr Turnbull said.