VFF to resign from peak farming councils

In an effort to stay afloat, the Victorian farm lobby has written to the peak commodity councils informing them of its decision to terminate its memberships.

The Victorian Farmers Federation will relinquish its membership of all peak farming industry groups in an attempt to remain financially viable.

On Tuesday VFF president Emma Germano informed Sheep Producers Australia, the National Farmers’ Federation’s horticulture council, Wool Producers Australia, Grain Producers Australia the Goat Industry Council of Australia and Cattle Australia that the Victorian farm lobby group was addressing its “future organisational viability”, and therefore resigning from the peak councils to focus on its core business activities.

The VFF will remain a member of the National Farmers’ Federation, but has requested a reduced hardship membership rate of $40,000 down from $220,000, in step with similar arrangments currently brokered by Cattle Australia, SPA and WPA.

It comes seven months after the VFF notified Australian Dairy Farmers it was handing in its membership, citing the ADF’s annual fee of $344,000 as a significant impost.

ADF is now pursuing legal action to recoup “unpaid membership fees” following failed attempts at negotiation and mediation.

By giving up its membership of the peak councils, the VFF is expected to save at least $480,000 a year.

Ms Germano’s letter said the VFF board had “prioritised the use of VFF resources towards the endeavours that equally benefit all Victorian farmers”.

“The board notes there is much duplication of effort on some issues, whilst others are missed entirely and believes that the current model of Australian agricultural advocacy has become inefficient and unsustainable,” Ms Germano said.

In December last year AgForce, Queensland’s peak farming body, gave notice that it would give up its membership of SPA having pushed for years for SPA and WPA to amalgamate to avoid duplication.

AgForce Sheep, Wool and Goat board president Stephen Tully said the move followed “a number of working issues where we didn’t feel we were heard or responded to”, and to get greater value for AgForce members.

“We have been encouraging amalgamation for some time,” Mr Tully said.

The VFF’s financials show it is desperately trying to cut costs, slashing staffing costs from $3.86 million in 2022 to $2.95m for the 12 months to September 30, 2023.

Early last year it cashed out the Grains Group’s $9.8m deed poll investment fund so it could pay off $3.1m it had borrowed from Credit Suisse and $1.7m towards $5.15m it had borrowed from Westpac.

The VFF’s Risk, Audit and Finance Committee warned that interest costs tied to its debts and Melbourne headquarters at Farrer House could pose a liquidity risk this year.