Helping meet the needs of rural Australia

Increasing competitiveness

The Government is continuing to support the rural sector in meeting domestic and international pressures through a range of initiatives.

The Agriculture – Advancing Australia(AAA) initiative has been helping primary producers adapt to change since 1997. This budget includes $205 million over four years to extend and enhance AAA, including:

• $35 million to help industry identify and manage risks and opportunities
• $26 million to assist producers to improve their business skills
• $92 million to assist farmers facing severe financial difficulty.

Drought assistance

The current drought is amongst the worst on record. Since 2002‑03, total Exceptional Circumstances (EC) assistance provided amounts to $1.6 billion. The Government has made drought assistance more accessible and expanded its scope to help farmers, small businesses and rural communities cope with the effects of drought, including through direct financial assistance, counselling services and advice. The Government expects to provide an additional $314 million in EC assistance over three years.

Total EC assistance in 2007-08 is expected to be $688 million.

Improving rural services

The Government is continuing to enhance rural services with:

• $163 million over the two years from 2006-07 to ensure all Australians have access to broadband services
• $157 million over the five years from 2006-07 to support the vital role of the Royal Flying Doctor Service
• $22 million over four years to upgrade rural airstrips.