Federal Budget 2020: Agriculture and water highlights

A new export system, further drought support and tackling worker shortages were all features for agriculture of the federal budget. Here’s what else farmers are getting this year.

The 2020 Federal Budget was mostly business as usual for the agriculture industry.

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A BIG spend on streamlining agriculture’s export system was the standout in a largely business-as-usual Federal Budget for the sector tonight.

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Funding to existing agriculture programs has remained largely untouched, but industry may be disappointed to see no new funding for biosecurity, and nothing for communications beyond the previously announced $30 million expansion of the regional connectivity program.

MODERNISING EXPORTS

A $328.4 million package will make it easier for farmers to navigate the agriculture export system.

That includes $222.2 million to create a new digital service, and $35.2 million for cutting red tape for the meat, live export, seafood and plant industries.

A further $71.1 million will go towards returning the export certification system to a full-cost-recovery model.

It is unclear the impact this will have on farmers, though budget papers note the Government will “minimise the impost on industry as it recovers from the effects of drought, bushfires and COVID-19”.

The National Farmers’ Federation had been calling on the Government to waive export certification fees for two years, in the wake of the pandemic.

WORKER SHORTAGES

Australians will be able to claim up to $6000 to cover the cost of relocating for harvest work, in an effort to encourage more people to help farmers with looming labour shortages this summer.

Students on Youth Allowance or ABSTUDY will also be able to claim independence easier, if they use their gap year to pick fruit on Aussie farms.

Recipients will automatically meet independence requirements if they can show they earned at least $15,000 working in agriculture between November 30, 2020, and December 31, 2021.

AJP protest against live exports

LIVE EXPORT FEDERAL COURT COMPENSATION

Funding will be provided through the Commonwealth’s self-managed insurance fund to cover compensation and legal costs of businesses who suffered losses due to 2011’s snap decision to ban live cattle exports to Indonesia.

The Federal Court this year found then-agriculture minister Joe Ludwig had behaved with “reckless indifference” to the consequences the blanket ban would have.

The number of claimants in the class action is still being determined.

MURRAY-DARLING BASIN PLAN

Almost $270 million has been allocated to direct the future of the Murray Darling Basin Plan, based on the recommendations in several recent reviews of the plan.

The package was announced last month, with part of the funding coming from the now defunct Water for Fodder program, and the Sustainable Rural Water Use and Infrastructure Program.

Almost $250 million will be spent on drought support. Picture: Getty Images

DROUGHT SUPPORT

There will be a further $155.6 million for drought support, including $50 million to extend the on-farm emergency water infrastructure rebate scheme.

The program helps farmers cover the cost of on-farm projects that may help droughtproof their farms.

Another $86 million will be used to establish eight drought resilience hubs through the Future Drought Fund, to help farmers, researchers and community groups work together to boost drought resilience.

LEVY CHANGES

The following levies will apply from January 1, as per requests from industry:

Dried vine fruits – a Plant Health Australia levy of $1 per tonne, to fund biosecurity management;

Farmed prawns – white spot disease repayment and export charge reduced to zero for 12 months, to provide relief to prawn farmers;

Macadamias – emergency plant pest response component of levy reduced to zero, as cash to cover varroa mite response has now been repaid to Government.

BUREAU OF METEOROLOGY

The weather bureau will receive another $254.6 million over four years, including $225.6 million for asset maintenance, and secure its observation network infrastructure.

AG-VET CHEMICALS

Another $2.4 million will be provided over four years to help farmers gain better access to agricultural and veterinary chemicals. This will be paid for by redirecting existing funding.

MORE

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