Change or lose drought assistance, Australian farmers told

Matthew Franklin and Asa Wahlquist in the Australian’s “Business” section: Farmers with a history of needing taxpayer-funded drought assistance will have to change their practices or face being refused help in the future under plans being developed by the Rudd government. Agriculture Minister Tony Burke is crafting a shake-up that will shift the focus of drought policy from disaster relief to risk management, ending the spectre of perpetually drought-stricken farmers spending years requiring government assistance.

The move recognises the likelihood of more frequent and more serious droughts caused by climate change and will include assistance to help farmers deal with the changing conditions by adopting new practices or switching to alternative crops.

…After Labor took office in 2007, Mr Burke began working on reforming the Exceptional Circumstances drought relief system, under which farmers in drought-declared areas qualify for government assistance such as interest-rate subsidies and income support.

He commissioned reviews of drought policy by the Bureau of Meteorology, the Productivity Commission and a hand-picked panel that examined the social effects of drought. They all questioned the efficacy of the EC scheme and Mr Burke responded in February by vowing the government wanted to change drought-assistance requirements to help farmers adapt to climate change. However, the reform push was stopped dead by the collapse of government revenue during the global financial crisis.

Asked by The Australian whether the plans were still alive, Mr Burke said no one should doubt his determination to push for change to make farmers more productive, reduce the pressure for taxpayer assistance and improve life in rural communities where morale and economic activity had been hammered by successive droughts….

Growing wheat in Australia around 1915