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VFF gains $6m in government grants but still posts a loss in 2020

Victoria’s peak farming body posted a loss in 2020, despite receiving a big boost in government grants. And the losses are set to get worse this year.

Farrer House has lost its prime tenant McDonald’s and is struggling to lease out space as workers abandon the CBD.
Farrer House has lost its prime tenant McDonald’s and is struggling to lease out space as workers abandon the CBD.

CLOSE to half the Victorian Farmers Federation’s $13 million in revenue came from state and federal government grants last year, including $569,500 in JobKeeper payments.

Overall, government grants to the VFF rose from $2.45m in 2019 to $5.9m last year, which included $900,000 from the Andrews Government for a yet-to-be released campaign to promote agriculture.

Yet despite the big boost in government funding the VFF still made a $726,406 loss last year, compared to a $182,582 surplus in 2019.

Farmer membership income from levies and subscriptions continues to stagnate at about $3.5m, while the board spent $739,344 on consultants to develop a strategic plan to restructure the VFF and deliver government projects.

The VFF’s losses are set to get even worse this year, given its $569,500 JobKeeper payments came to an end last October and it is struggling to find tenants for its Farrer House Collins Street headquarters.

McDonald’s, the VFF’s prime tenant, has vacated its Collins St shop front, at a time when the CBD is awash with commercial rental space in the wake of city workers abandoning the Melbourne commute to instead work from home.

Real estate agents Teskacarson is advertising the ground floor of Farrer House, plus space on levels 10 and 11, while floors four and five about to be put on the market.

VFF president Emma Germano said the federation “hasn’t been immune from the impacts of COVID-19 and the events of 2020, but has plans in place to rebound strongly”.

“Our focus is on expanding the VFF’s membership to help strengthen the strong financial position of the organisation, supported by Farrer House and other strategic investments.

“With a new leadership team, we are committed to delivering on a fresh set of ambitions for the organisation.”

The VFF currently has about 6000 members, representing 4600 farm businesses.

VFF life member and former Grains Group president Ian Hastings said while he was “totally committed” to the federation, he was concerned consultants were being used “too freely and frequently.

“There’s a lot of expertise within the VFF, among its members, on what’s needed, not in external consultants.

VFF Water Council chairman Richard Anderson said he had no problem with the federation tapping into government grants, but wanted to see more transparency on how the money was being spent, in regard to what share was going towards staffing and project costs.

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Original URL: https://www.weeklytimesnow.com.au/news/victoria/vff-gains-6m-in-government-grants-but-still-posts-a-loss-in-2020/news-story/9af414a42d45d48e695002521560f1ef