Analysis: What the 2024 federal budget means for farmers
The federal government has shifted its focus from biosecurity to climate change in how it allocates money to farmers and the regions. See how this affects you.
Labor has gambled on a climate change agenda for farmers in its third budget, spending almost $800 million to help the sector protect itself and adapt to more intense and frequent natural disasters and weather extremes.
Following last year’s budget’s focus on boosting the government’s biosecurity capabilities to the tune of $1 billion, this year the theme is drought preparedness, carbon reduction and sustainability.
Many of the government’s spending commitments in this space were revealed in the weeks preceding the release of Treasurer Jim Chalmers’ 2024-25 budget, handed down on Tuesday night, including the headline Future Drought Fund investment of $519.1 million over the next eight years.
Earnings from the $4.8 billion FDF will be used to extend the drought resilience adoption and innovation hub model, provide the next phase of the regional and drought resilience planning program and ensure the government maintains a state of readiness for drought, among a range of initiatives designed to support farmers and regional communities prepare for the next El Nino.
The government will also provide $63.8 million over 10 years from 2024-25 and $900,000 thereafter to support initial emission reduction efforts as part of Labor’s road map to net zero carbon emissions by 2050.
The positive agenda comes just days after Agriculture Minister Murray Watt pulled the rug out from the live sheep export industry, announcing an end to the trade in four years’ time.
A $107 million, five-year support package for the industry’s phase out was announced on Saturday for sheep producers and the supply chain to expand domestic sheep processing capacity, capitalise on existing and emerging opportunities in processed meat and support community wellbeing.
These budget announcements for agriculture and the regions were delivered amid headline themes of cost-of-living relief, improving access to housing and responsible economic management.
As revealed on Monday, the federal government will deliver a $9.3 billion surplus for 2023-24. But this will be followed by three years of deep deficits, starting with $28.3 billion in 2024-25.
“The No. 1 priority of this government and this Budget is helping Australians with the cost of living,” Dr Chalmers said, adding there would be a tax cut for every Australian. His plan to do that includes income tax changes, energy bill relief by way of rebates of $300 for every household and rent assistance.
FOOD LABELLING
In line with a pre-election commitment, the government will spend $1.5 million over two years to improve existing arrangements for the accurate and clear labelling of plant-based alternative protein products. This should placate some farmers who have waited for years for the government to act on loose terms for non-animal protein products relying on marketing their goods as “mylk”, cheese and meat.
The funding will also support independent research into consumers’ current understanding of plant-based labelling.
LABOUR
The prolonged issue of a lack of workers to manage farm businesses has been addressed with a $1 million pilot program to attract more graduates to work in agriculture, called the skilled agricultural work liaison pilot.
The National Farmers’ Federation run AgCAREERSTART pilot program has also been extended for another two years at a cost of $500,000. The program operates like a gap year for young people keen to work on a farm but without any prior knowledge of the industry.
This falls well short though of the $4.4 million the NFF asked for to extend the program, now in its third year, for another three years.
MURRAY DARLING BASIN
The federal government will continue to deliver on its commitment to deliver the Murray Darling Basin Plan by 2027, as announced in last year’s budget. But in line with previous budgets, the specifics of how much it will spend doing so have not been disclosed.
Funding includes “for additional voluntary water purchases to contribute towards environmental outcomes under the Basin Plan,” the budget says.
It will spend $27 million in 2024-25 to expand the existing Resilient Rivers Water Infrastructure Program to develop more water savings projects.
Another $4 million in 2024-25 will fund a hydrological modelling platform underpinning implementation of the Basin Plan and a business case for further development.
The Inspector-General of Water Compliance will be given an extra $28.6 million to stay on top of water theft.
INFRASTRUCTURE
Infrastructure Minister Catherine King’s portfolio revealed $4.1 billion would be spent over seven years for 65 new priority infrastructure projects, following an independent review last year of the federal government’s $120 billion infrastructure investment pipeline.
However almost half of that funding will go towards upgrades in Western Sydney. An automatic train control program in Western Australia will receive $300 million, with another $54 million for regional roads in that state. Meanwhile Victoria will receive just $17.6 million for the Bridgewater Road and Portland Ring Road intersection upgrades.
However Roads to Recovery funding will increase from $500 million to $1 billion annually, Black Spot funding from $110 million to $150 million a year while $200 million will be spent each year on the new Safer Local Roads and Infrastructure program, which from July this year replaces the existing Heavy Vehicle Safety and Productivity Program and Bridges Renewal.
AUSTRALIAN CARBON CREDIT UNIT SCHEME
The government has committed to overhauling the Australian Carbon Credit Unit Scheme, providing $48 million over four years to implement reforms following an independent review.
These reforms include the establishment of a Carbon Abatement Integrity Committee to strengthen integrity, provide enhanced transparency measures and support First Nations engagement in the scheme.
The investment comes at the expense of the Powering the Regions Fund.
HEALTH
Almost $74 million has been earmarked to continue the Royal Flying Doctor Service’s essential primary health service to people living in remote parts of Australia. More than $56 million will be spent over the next four years supporting access to women’s health services, including access for women in regional Australia.
WHAT WAS MISSING
Omissions from the budget included a container levy scheme to help fund biosecurity efforts. The scheme has been on the industry’s wishlist since the Craik review in 2017.
Funding for farm worker accommodation was also missing, despite becoming a constant feature of pre-budget submissions across the agricultural sector.
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