VFF in turmoil: Victoria’s peak farmer lobby falls apart

The Victorian Farmers Federation board has been left unable to function under its constitution, after three directors resigned.

VFF president Emma Germano. Picture: Aaron Francis

Victoria’s peak farming lobby is in disarray after three of its seven directors resigned, leaving the board without the five-member quorum needed to function under its constitution.

The Victorian Farmers Federation’s Livestock Group director Peter Star, Grains Group president and director Craig Henderson, plus eggs, chickenmeat and pigs representative Meg Parkinson lodged their resignations on Tuesday, in the midst of the VFF Conference.

Clause 10.3.5 of the VFF’s current constitution states “a quorum at a meeting of the Board shall be at least five directors”.

But VFF president Emma Germano has stated the “VFF Board can continue to operate in accordance with the Corporations Act”.

Ms Germano has vowed to continue the “transformational journey” of the VFF, which includes a raft of constitutional reforms she has been working on with Maddocks Lawyers since October last year that members have argued takes the VFF “out of grassroots farmers’ hands” in favour of a corporate model.

Under the proposed changes, the constitution will:

GRANT the board “at its sole discretion” the power to “establish, dissolve or merge commodity groups or any working or subgroups of such commodity groups” and “establish, merge or dissolve branches”;

END commodity group’s current constitutional control of their finances;

RENAME commodity presidents as commodity chairs and prohibits them from sitting on the VFF board; and

CUT the number of farmers on the board from seven to four and lifts the number of specialist (non-farmer) directors to three.

The constitutional reforms even allow the VFF’s chief executive to determine which branch a new member can join.

Ms Germano said the VFF Board had “resolved unanimously” to approve a notice to hold an extraordinary general meeting, at which members would “consider the amendments to the VFF constitution”.

But The Weekly Times understands other VFF directors were surprised by Ms Germano’s comment, given they said no formal resolution was put to a vote and they were simply asked to approve the constitutional amendments going out for member feedback.

The three directors who resigned this week wrote to the VFF chief executive and remaining board members stating: “We are concerned that there is a lack of positive culture at the board and a lack of consultation with either the board or members – including preparation of the new draft constitution”.

The outgoing directors also cited grains and dairy members’ concerns with the VFF.

Grain growers, led by former group presidents Andrew Weidemann and Brett Hosking had put together 156 signatures to call an extraordinary general meeting to oust the board.

But the VFF’s company secretary dismissed the EGM call on the basis of legal advice he and Ms Germano refused to release.

The VFF’s dairy farmers have already formed a breakaway group – Dairy Farmers Victoria – formed by members of the United Dairyfarmers of Victoria’s policy council, who have been frustrated by staff cutbacks and lack resourcing.

UDV president Mark Billing said dairy farmers were sick of handing over $1 million in milk levies to the VFF each year, but getting less than 10 per cent of that money came back again to develop dairy-specific policy.

In a joint statement the three directors who resigned this week said they were concerned about the formation of “the new dairy organisation and its consequences”.

“We are not sure where Craig Dwyer (the VFF’s dairy director) sits on this. We are concerned that the new organisation was drawn up by UDV Policy Council.”

Meanwhile Ms Germano has launched a new VFF membership model, which asks farmers to pay almost $1500 for access to state parliamentarians and an audience with the president.

Under the new membership structure, seen by The Weekly Times, farmers willing to pay $1495 as “platinum members” will receive benefits such as preferential seating at the VFF’s annual conference plus exclusive access to president Emma Germano’s roundtable and attendance at an annual regional parliamentary engagement forum.

Those who opt for cheaper gold memberships at $895 or silver at $695 will still have voting rights, but not be granted exclusive audiences with the president or parliamentarians.

Ms Germano said consultation on the new membership “was undertaken with all of the commodity groups over the past 12 months and was based on the member feedback from an extensive survey”.

But both dairy and grains leaders say most farmers would opt for the gold or silver memberships, which would exacerbate the ongoing decline in VFF revenue.

As it stands the average dairy farmer pays $1200 in levies to the VFF and grain growers an average $976.

The VFF has struggled financially, doubling its borrowings from $4 million in 2018 to $8.2 million earlier this year, maxing out its credit limits, losing 844 members last year.

The board responded by voting to cash out the VFF Grain Group’s $9.8 million deed poll investment fund to pay off $3.01 million it had borrowed from Credit Suisse and another $1.7 million towards $5.15 million it had borrowed from Westpac.

Farmers have become disengaged from the VFF, says its dairy farmer leader Mark Billing. Picture: Nicole Cleary

Tyrendarra dairy farmer and southwest regional UDV policy councillor Bruce Knowles, who contributes $8000 to $9000 a year in milk levies to the VFF, said the restructure had failed and “farmers are becoming disengaged and turning away from the organisation”.

“I’m quite happy to pay (levies), provided I’m getting value for money, which I’m not seeing,” he said.

Tyrendarra dairy farmer Bruce Knowles says dairy farmers need to take back control of the levies they pay the VFF.

Mr Knowles said “the corporate model” proposed under the constitutional reforms, was taking control of the VFF “out of grassroots farmers’ hands”.

In the meantime he and other members of the UDV’s policy council are forging ahead with the launch of a new Dairy Farmers Victoria lobby group.

Mr Billing said initially dairy farmers would be asked to pay a foundation subscription to DFV, until the new lobby group worked out “what relationship, if any” it had with the VFF.

Mr Weidemann said grains members would also forge ahead with their bid to hold an EGM to oust the board.

Mornington Peninsula farmer David Gibb, who attended this week’s VFF Conference said: “I’m confused by it all, as a rank and file member”.

“We just want the VFF to function as the premier advocacy group for farmers, so we need to get all this sorted.”

Mornington Peninsula beef producer David Gibb wants the VFF to regain its footing as Victoria’s “premier advocacy group”.