Victorian farmer warns 'cost crunch' continues for dairy producers despite rain
Southwest Victorian farmer Jamie Vogels warns recent rain has masked the true financial burden of running a farm. Here’s why.
Operating a farm in the 2020s is increasingly taxing, according to dairy farmer Jamie Vogels - while the state government “has been taxing increasingly.”
The southwest Victorian farmer has urged Spring Street and dairy processors to better understand the cost crunch faced by primary producers, despite the recent greener pastures.
Also a Corangamite Shire councillor, Mr Vogels operates a dairy farm at Scotts Creek, near Timboon and 65km east of Warrnambool.
“My major concern, from government, the processors and big business is that we’ve had some rain recently and they think the drought is over,” he said.
“What many in Melbourne fail to understand is the financial pressures are still there. Bills need to be paid and there’s a huge lag created by drought while we’re dealing with a greater tax burden being passed on directly and indirectly.”
Agricultural leaders have been calling for a new meeting of the Victorian Government’s drought taskforce, which hasn’t met in-person since late June.
A spokeswoman for Premier Jacinta Allan confirmed the taskforce would meet online this Friday.
“We continue supporting regional Victoria to navigate the challenges of drought with the ongoing rollout of the Allan Labor Government’s $144m drought package. Preparations are also underway for the approaching fire season,” the government spokeswoman said.
Mr Vogels said while current farmgate prices were an improvement on the previous season, input costs were eating into the margins of dairy farmers, stifling investment.
“My dairy (rotary operation) is 32 years old – rotary dairies are meant to have a lifespan of 25 years and it’s $3m to build a new one. These major expenses aren’t taken into account when there’s talk about a reasonable milk price,” he said.
“Look at Europe, there’s direct and indirect subsidies for farming and Australia hasn’t had that history — you have to stand on your own two feet.
“Australian farmers have had no problem having that independence — but we’ve got a cost of government problem.”
Despite the rise in Spring Street taxes, Mr Vogels said rural ratepayers were frustrated that the burgeoning bureaucratic bill had little return to regional Victoria.
“Look at council infrastructure like swimming pools or country halls. Where’s the money going? Country councils have to collect the fire services levy but we’re seeing very little flow back the other way.”
