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2003-04 Budget

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Agriculture, Fisheries and Forestry

Drought assistance

Table 3: Commonwealth drought assistance: Summary of measures

Table 3:  Commonwealth drought assistance:  Summary of measures

Additional drought assistance measures

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 7.3 4.8 - -
Department of Industry, Tourism and Resources 39.0 23.0 - -
Department of Education, Science and Training 3.4 -1.9 - -

The Government announced on 9 December 2002 the provision of one-off drought relief measures costing $368 million over three years (including $193.2 million in 2002-03). The measures were designed to provide financial support to farmers, small business and communities hardest hit by the drought, in advance of a large number of Exceptional Circumstance (EC) applications from State Governments.

Assessment of regions' EC eligibility has been more prompt than forecast due to the speed with which the States and the Commonwealth's National Rural Advisory Council have prepared and processed applications. As a result, eligible drought affected farmers have been able to access EC income support and interest rate assistance sooner than anticipated, reducing demand for this package. Consequently, the forward estimates for drought assistance have been reduced to $170.2 million, including $94.6 million in 2002-03.

Country Women's Association Emergency Aid Fund

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry - - - -

The Government announced on 27 November 2002 that it would provide $1 million in 2002-03 to state branches of the Country Women's Association to assist their work in helping and supporting farmers and their families during the current drought.

Drought affected areas - interim support

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 30.5 12.6 - -

The Government announced during the period November 2002 to April 2003 the provision of interim income support and interest rate relief to farmers in drought-affected regions across New South Wales, Victoria, Queensland, Western Australia and South Australia, in advance of State Government applications for Exceptional Circumstances (EC) assistance in those regions being assessed by the Commonwealth. The Government's additional drought assistance package announced on 9 December 2002, also provides short-term financial support in this case to individual farmers in areas suffering a 1 in 20 year rainfall deficiency over the nine months March 2002 to November 2002.

Once a fully completed application for a particular region is received by the Commonwealth and is deemed to show a prima facie case for EC declaration, interim income support is made available to eligible farmers on conditions equivalent to the Exceptional Circumstances Relief Payment. Interest rate relief on new and additional borrowings over two years is also made available to eligible farmers.

Access to interim income support is available for up to six months while the EC application is assessed. Should the Government declare EC in a region, interim income support ceases and standard EC assistance arrangements commence.

Total funding for this interim support is $78.9 million, including $35.8 million in 2002-03. This funding includes $5.6 million over two years (including $5.5 million in 2002-03) for Centrelink to administer this measure.

Drought Assistance - Exceptional Circumstances Declarations

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 204.6 108.6 - -
Department of Family and Community Services 6.1 3.7 0.6 -
Department of Health and Ageing 6.5 3.4 - -

The Government will provide up to $432.7 million over four years (including $99.2 million in 2002-03) for Exceptional Circumstances (EC) assistance to farmers in regions across New South Wales, Victoria, Queensland and South Australia. The Minister for Agriculture, Fisheries and Forestry announced the declaration of EC in these regions during the period November 2002 to April 2003. This amount may increase subject to the receipt of additional applications for assistance.

EC drought assistance is a cross-portfolio measure between the Departments of Agriculture, Fisheries and Forestry, Health and Ageing, and Family and Community Services. Eligible recipients are provided with a health care concession card under the Health and Ageing component and Youth Allowance under the Family and Community Services component.

Funding for the Department of Agriculture, Fisheries and Forestry includes $5.6 million over three years for Centrelink to administer elements of EC assistance.

EC assistance comprises interest rate subsidies and income support to assist viable farm businesses and farm families adversely affected by exceptional climatic events, including drought.

Pest Animal Management Grants Programme

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry - - - -

The Government announced on 27 November 2002 that it would provide $1 million in 2002-03 to farmers for the control of animal pests such as kangaroos, feral pigs, feral goats and rabbits during the current drought.

Personal counselling services for drought-affected communities in rural regions

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Family and Community Services - - - -

The Government provided up to $2 million in 2002-03 for personal counselling services in drought affected rural areas. Face-to-face and telephone counselling services will be provided to approximately 6,000 people through Centrelink and the Family Relationships Service Programme located in rural areas.

Other measures in the Agriculture, Fisheries and Forestry portfolio

Aquaculture Industry Action Agenda

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 2.5 - - -

The Government will provide $2.5 million in 2003-04 towards the implementation of the Aquaculture Industry Action Agenda.

Initiatives under the Action Agenda include promoting and developing an efficient regulatory environment and research and development activities to ensure an innovative, sustainable, competitive and forward-looking industry able to attract new investment and find new markets.

See also the related expense measure titled Aquaculture industry - reprioritisation of funding in the Agriculture, Fisheries and Forestry portfolio.

Aquaculture industry - reprioritisation of funding

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry -2.5 - - -

The Government will reallocate $2.5 million in 2003-04 from the Skilling Farmers for the Future Programme to the Aquaculture Industry Action Agenda to assist industry diversification and income generation in rural and remote Australia.

The revised level of funding will more accurately reflect estimated demand under the FarmBis programme, and will not affect existing agreements with the States.

See also the related expense measure titled Aquaculture Industry Action Agenda in the Agriculture, Fisheries and Forestry portfolio.

Farm Help - interim extension

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry - - - -

The Government will extend the closing date for applications for assistance under the Farm Help programme from 30 November 2003 to 30 June 2004. Funding for the extension has been allocated to the Contingency Reserve.

Farm Help assists farmers to restructure and improve the operation and management of their farms, and to help explore future options or re-establish themselves outside of farming.

National Landcare Programme - continuation

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry - - - -

The Government will provide funding of $122.2 million over three years to continue the National Landcare Programme to improve natural resource management by governments, industry, the community and landholders.

Funding of $38.3 million will be provided in 2003-04, $41.5 million in 2004-05 and $42.4 million in 2005-06. Provision for this funding has already been included in the forward estimates.

Red Imported Fire Ant - additional funding for eradication

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 5.2 - -5.2 -

The Government will provide an additional $5.2 million in 2003-04 to intensify and expand the existing Red Imported Fire Ant Eradication Programme. The Commonwealth's contribution is 50 per cent of the total additional cost, in line with cost-sharing agreements for plant/animal pest and disease eradication between the Commonwealth and State and Territory governments.

This measure will be funded by bringing forward $5.2 million from the existing Red Imported Fire Ant Eradication Programme forward estimates for 2005-06. Intensification of the Eradication Programme in 2003-04 may obviate the need for funding in the later years.

Tasmanian Wheat Freight Shipping - continuation

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry - - - -

The Government will continue to fund this programme to meet the cost disadvantage of shipping wheat across Bass Strait. This measure will involve funding of $1.2 million in 2003-04 and $1.2 million in 2004-05 at which time a review will occur to consider future funding. Provision for this funding has already been included in the forward estimates.

Tuberculosis Freedom Assurance Programme - continuation

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry 1.0 0.6 0.2 0.1

The Government will provide $1.9 million over four years to continue surveillance efforts to ensure that Australian cattle remain free of tuberculosis. Protecting Australia's tuberculosis-free status is important to maintain access to valuable export markets. This is a cooperative programme involving Commonwealth, State and Territory governments and the cattle industry.

See also the related expense measure titled Tuberculosis Freedom Assurance Programme - reprioritisation of funding in the Agriculture, Fisheries and Forestry portfolio.

Tuberculosis Freedom Assurance Programme - reprioritisation of funding

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Agriculture, Fisheries and Forestry -1.0 -0.6 -0.2 -0.1

The Government will reallocate $1.9 million over four years from the Skilling Farmers for the Future, Agricultural Development Partnerships, and Other Exotic Disease Preparedness programmes to the Tuberculosis Freedom Assurance Programme.

The revised level of funding will more accurately reflect estimated demand under the three programmes and will not affect existing programme activities or agreements with the States.

See also the related expense measure titled Tuberculosis Freedom Assurance Programme - continuation in the Agriculture, Fisheries and Forestry portfolio.


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