Bush Summit 2022: Farmers call for $2bn bush bonanza
Billions could be invested in rail, housing and connectivity in the bush under a proposal to droughtproof farms and make Australia the new breadbasket of the Middle East.
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More than $2 billion in regional infrastructure investment in rail, housing and connectivity could be delivered under a bold proposal to droughtproof farms and make Australia the new breadbasket of the Middle East.
The plan, proposed by a group of Australian farmers and being considered by the federal government, would involve unlocking the sovereign wealth funds in the key Gulf states of Bahrain, Qatar and United Arab Emirates who can no longer rely on Ukraine for their food supply.
The oil-rich but food-poor nations are understood to be looking for a new reliable farming source now that Ukraine is under siege and prepared to invest heavily to shore up certainty of supply, including a $2 billion spend on regional infrastructure.
It is understood the sovereign funds of the three states — particularly Bahrain — are also prepared to invest $400 million in an Australian farmers mutual fund that would act as an insurer and provide financial security to farmers in times of drought.
All the federal government would have to do is effectively underwrite the scheme and allow access to Australia’s sovereign wealth fund, the Future Fund, or the Future Drought Fund, in the event of a shortfall during a particularly bad season.
This would then be repaid to the government across bumper years at the same rate of interest it would otherwise have accrued, thus ensuring no cost to the taxpayer and no impact on Budget revenue.
It is believed that this guarantee is all that is required for the Gulf states to be comfortable enough to invest. It would also be written into any arrangement that the mutual fund would always be majority Australian controlled.
The additional $2 billion proposed for regional infrastructure would include increasing rail speed and capacity, additional housing and better internet and communications networks, all of which would be of huge benefit to bush communities as well as improving the economic efficiency and reliability of exports.
It is understood the former government was already considering the proposal and the new Treasurer Jim Chalmers and Agriculture Minister Murray Watt have both been briefed.
Aussie Farmers Mutual CEO Andrew Trotter, who is in talks with the government and the Gulf states, said the move would provide better protection for farmers.
“We can no longer lurch from drought to flood and have our farmers financially struggle for years. The mutual will free them from that and let them do what they do best — produce quality Aussie food,” he told The Daily Telegraph.
“This will allow farmers to pay an annual premium and when disaster strikes get a cheque that gets them back on their feet.”
Mr Trotter said it would also be a massive boost to agricultural exports at no cost to the taxpayer.
“The world needs our food and in particular the Gulf States who are turning away from Ukraine as their traditional source of food imports and want to invest here. The Gulf’s sovereign wealth funds want to play their part in bolstering Australia’s regions,” he said.
“This will unlock $2.5 billion in foreign capital without selling an acre of Aussie land. Instead it will go into securing our agriculture and the infrastructure it needs to export to markets that want to buy from our farmers.
“It’s a once in a lifetime opportunity to harness the full potential of the bush.”
ends
PROPOSAL BEFORE THE FEDERAL GOVERNMENT
—Promote Australia as new food supplier to rich Gulf states
—$400m from Gulf states to Aussie Farmers Mutual fund to droughtproof farmers
—$2bn from Gulf states for bush infrastructure such as rail and housing and connectivity
—Fed govt to underwrite mutual’s operation to provide certainty for investment
—Any fed govt funds used to be repaid in full
—Mutual guaranteed to be majority Australian owned and controlled
—150 per cent tax write-off for farmers taking out mutual policies
The Daily Telegraph’s 2022 Bush Summit will be streamed online live and free on Friday August 26. Register to watch here: https://bushsummit2022-dailytelegraph.splashthat.com/
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