Drought safeguard insurance program back on the table for farmers

The NSW government is pushing for a national insurance program for farmers, investing an initial $2 million to investigate how the drought safeguard could work, in the hope federal and state governments will begin contributing.

• Building the bush into $100b industry

Exclusive: A national insurance program for farmers crippled by drought is back on the agenda, with the state government to lobby the Commonwealth to join forces on a nationwide income protection scheme.

The NSW government will invest an initial $2 million to start the process of investigating how the drought safeguard would work, with the ultimate scheme likely to cost billions and require contributions from state and federal governments.

It is considered something like an NDIS-style scheme for farmers to safeguard against the financial impact of future droughts — a model which the agriculture sector has wanted for decades.

It comes as The Daily Telegraph can reveal the NSW government has fast-tracked 22 infrastructure projects in drought-affected parts of the state.

The projects, funded by $358 million in drought stimulus cash from the state government, span Dubbo, Gilgandra, Coonamble, Nyngan, Cobar, Orange, Broken Hill, Bathurst, Deniliquin and Merimbula and create 165 immediate full-time jobs.

Paul Guy at Tullamore after feeding his sheep. Picture: Jonathan Ng

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The projects have been assessed and signed off in just a month — a process that would usually take up to a year — to quickly drive business activity in the struggling towns which have been financially hurt by the drought.

The National Farmers Federation will partner with the state government towards establishing a national income protection scheme.

“Our primary producers are facing one of the worst droughts in living memory and the NSW government wants to ensure farmers never suffer the same financial hardship again,” Deputy Premier John Barilaro said.

“That’s why we’re putting cash on the table to go to work with the National Farmers Federation and identify potential models that could be used to protect farmers against income loss in future droughts or even natural disasters.”

Mr Barilaro said the government was starting with a “blank canvas” in terms of what the scheme would look like.

“That’s why it’s important all parties come together and work collaboratively to design a scheme that genuinely benefits farmers,” he said.

NSW Agriculture Minister Adam Marshall. Picture: Jonathan Ng

Deputy Premier John Barilaro.

NSW Agriculture Minister Adam Marshall said a national income protection scheme was the best way governments could help farmers combat drought.

“As this drought rolls on it’s obvious we need to be looking at ways to roll out a product that would cover all producers — whether croppers, graziers or horticulturalists — against this devastating loss of income that comes with drought and other natural events,” he said.

Mr Marshall said this type of insurance scheme had been called for by the agricultural sector for years but insurance products were largely constrained to individual production sectors.

“What we’re looking at here is something completely new, a national scheme that all farmers, regardless of what they grow and the size of their operation, can buy into and be permanently covered by,” he said.

The government believes that to be truly successful such a plan would need support from the Commonwealth and other states.

The government has promised $1.8 billion to respond to the current drought.

Mr Barilaro will travel to a string of towns this week to announce the fast-tracked infrastructure projects.

The local projects include $3.9 million for an industrial precinct and intersection upgrades in Gilgandra, $6.5 million for the Scone Regional Airport master plan, $400,000 for the Coonamble Riverside caravan park redevelopment and $4.2 million for multiple roads in Singleton.

SUPPORT IS GOOD BUSINESS

Frustrated by a lack of help for rural business start-ups, one woman has turned an old building into a hub of ideas, mentoring and support.

With the roll-up-your-sleeves attitude of a farmer’s daughter, Jillian Kilby purchased the 1886-built post office and clock tower in Dubbo last year and established The Exchange, where locals can work together to grow their businesses.

“We focus on increasing the confidence, capability and capacity of people in the region to start and scale their businesses,” Ms Kilby said. “There’s a new face of regional Australia and that’s young business owners who are rising through the ranks — and I saw a need for people to come together and build their ideas.”

Jillian Kilby, founder and Chief Executive Officer of The Exchange. Picture: Jonathan Ng

Coonamble-born Ms Kilby, 35, recently returned to the bush after working in the US tech-hub of Silicon Valley
and studying at Stanford University. She also worked
on major infrastructure projects and policies both here and in the US.

“When I came back last year I recognised that people in Dubbo might not have the chance to experience what I did, and so I found a way to provide that support directly to them,” she said.

Ms Kilby (left) hopes today’s Bush Summit will shine a light on the Dubbo region’s potential and bring more jobs to the area. “Economic development should be a big focus because of the lasting impact it will have,” Ms Kilby said. “If we can help someone start a business, they then can employ local people and it will have such a greater impact on the whole community.”

— by Adella Beaini

‘CALL IT A DISASTER’

The Shooters, Fishers and Farmers want the drought declared a “natural disaster”.

The party’s NSW MP Roy Butler has called for swift intervention to help struggling­ farmers. “When a person crashes a car we do not send a team of planners in to tell them how we’ll fix the road, we send in emergency help,” he said.

“We make sure everyone is OK before we plan how to prevent the next crash.

“This is the type of response that is needed to this protracted drought.”