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 Budget 09: Agriculture wears the pain 

Budget 09: Agriculture wears the pain

12 May, 2009 09:42 PM
AGRICULTURE and the rural sector have certainly borne their share of the Budget's pain, with a 31.8 per cent reduction in funding to the Department of Agriculture, Fisheries and Forestry and its agencies in 2009-2010 as part of the Government's forecast savings of more than $22 billion over the next four years.

The closure of Land and Water Australia, plus major cuts to the Rural Industries Research and Development Corporation and the Sugar Research and Development Corporation are behind the bulk of the savings.

Meanwhile the Department of Environment, Water, Heritage and the Arts can enjoy a 63.9 per cent rise in funding for its portfolio.

The Department of Prime Minister and Cabinet also gets a good boost, with a 33.2pc increase to its portfolio allocation for the coming year.

It was reported last week that the Government will close Land and Water Australia by the end of this year to the shock and disbelief of its board and the rural sector.

Rural Industries Research and Development Corporation will also suffer cuts, with successive cuts of $3 million a year over four years which the Government says can occur through reductions in research duplication and organisational efficiencies.

Funding to the Department of Agriculture, Fisheries and Forestry will be also be cut by $12m over four years, with a hit this coming year of $3.4m, which will be found by "identifying lower priority activities" that can cease with minimal impact on the Government's objectives.

The good news is drought assistance will continue to be provided to farmers, despite an anticipated reform of exceptional circumstances assistance not finalised in time for this year's budget.

Minister for Agriculture, Tony Burke, said $715.3 million had been allocated in the coming financial year to provide support to drought-affected farmers, families, small businesses and rural communities.

EC assistance is unchanged, but there has been a 12-month extension of EC assistance for small businesses and the continuation of a $20,000 salary and wages exemption for EC relief payments and the $750,000 off-farm asset exemption for the EC interest rate subsidy.

This is on top of an extension of mental health services in rural areas.

Mr Burke said while seasonal conditions had improved, there were still about 20,000 farmers and 1000 small businesses still receiving EC assistance.

In the area of water, the Government says it has committed to spend $300 million for new on-farm irrigation efficiency grants in the Murray Darling Basin, a measure announced prior to the budget.

A previously announced $500m acceleration of the water buyback scheme in the Murray Darling Basin was also included.

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Surprise, surprise that Tony Burke's Department would receive a cut back. Mr Burke would not have put up much of a fight -he has bigger fish to fry.
Posted by Spray Fallow, 12/05/2009 8:21:43 PM
Face it there are no votes in the rural seats for Labor and the Labor politicians still believe food comes from the supermarket. Like Australia's bank account the rural areas are in crisis, but agriculture still out performs most other industries as far as trade income goes. Labor is NO friend of agriculture. One day when the food in the supermarket is all imported and very expensive the penny may drop to these boof heads in power.
Posted by Barely surviving, 13/05/2009 8:52:20 AM
At 715 million to assist the 21,000 farms and businesses that need it in Australia, that is about $34,000 each before admiistraion costs. I wonder how much will actually get on the ground.
Posted by the lorax, 13/05/2009 8:59:54 AM
Not suprising. Labor has always hit the rural sector in every budget. Talk about biting the hand that feeds you! One Labor politician once asked why won't most farmers vote Labor!! Labor govts always run the country into debt and seem to have plenty of money to hand out to areas, as long as it is a non-productive area, eg dept environment, heritage and arts.
Posted by R, 13/05/2009 10:07:14 AM
Few arguments with the infrastructure spend, only that it should have happened long before now & there is no Melbourne to Brisbane rail project as has been promised. That could actually have benefited a few regions, but agree with Barely Surviving above, they have no votes to cultivate in the regions. Fully support pension increase as well. If I live to 67 I might need it soon. It was really an election budget that was spun beforehand to be a horror budget, but wasn't.
Posted by Trev, 13/05/2009 10:36:48 AM
The Liberals set the path to ruin and recession with their green policies. Now Labor puts the nails in the coffin. Where is the old Country Party when you need it? Gone to the coast chasing votes? Tony Windsor has shown what one independant can do. In WA the Nationals got a good deal for the country by negotiating to form a coalition with both major parties at their last election. City folk think money grows on trees but we country folk know it doesn't. Do we country folk tell the city folk how to run their cities and make laws to put them out of work and stop them making money? Who will step forward like David, and attack the Goliath of the cities? We need to regain our freedom to use our God-given blessings for productive purposes for the good of our great nation?
Posted by Common Cents, 13/05/2009 12:53:29 PM
Australia's farmers should be wary of these policies which are consistent with the preaching of some of our radical academics, i.e that Australia should shut down agriculture altogether. Remember, this is a government of bookworms. R & D is nowhere more important than in agriculture. It is R & D which keeps agriculture one step ahead of pestilence.
Posted by Ted O'Brien., 13/05/2009 2:22:37 PM
You will all be pleased to know that the Department of Climate Change has been given plenty of money. Maybe the focus in the future will be to prove farming is destroying the planet and must be stopped rather than giving farmers the tools to be even better than they already are.

Farmers and the country have been ripped off for years and maybe it is time for a REAL country party to be formed. The National party could offer the Labor party some room in the Senate if they modererated some anti farmer policies and gave famrers as good a deal as other sectors.

Another $300 million into the farming sector above the coal industry would have helped.

As I have said, nationalise the coal industry and let all Australians have cheap power. It will not contribute anything meaningful to global emissions and spend profits on making this the best farm in the world, because food security is going to be the real threat to human civilisation.

Posted by the lorax, 13/05/2009 7:09:53 PM
Why is it that when money is needed to be found in any government budget, it always comes out of agriculture and emergency services?

Federal politics are no exception. We can also note that while everyone seems to be tightening their belts our pollies are loosening theirs, with a substantual increase for the Department of Prime Minister and Cabinet...oh, what a shock and horror if this portfolio faced huge budget cuts.

The government claims money can be found through identifying inefficiencies and duplication. Does that mean that, in the next budget we will see cuts to the Department of Prime Minister and Cabinet, as we have numerous inefficiencies in the duplication of procedures, and an over commitment of human resources?

If all country people rejoined our National Party, we could actually make some sort of difference. But it will take all rural voters to make the difference.

Posted by poorman71, 13/05/2009 7:17:33 PM
I've written about this before...agriculture is poorly represented in Canberra, both by politicians and lobbyists.

All of you are correct, cheap food is something that people believe that they have as a 'right', and whatever political party is in power they know that farmers will continue producing, because that is all they can do.

The RBA site on rural debt will show the true picture of agriculture. Mind you, over here in WA it is difficult to explain why a D of A research officer goes on the radio every year to tell farmers how to feed sheep during pregnancy and late autumn.

There are many cases of this no-doubt expensive, patronising attitude from 'advisors', and a quick look at the average age of farmers will show that if there is still a need for that kind of 'service' then we are all extraordinarily slow at learning even the basics of our industry.

Posted by Roger Crook, 14/05/2009 7:38:29 AM

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Agriculture Minister Tony Burke
Agriculture Minister Tony Burke
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13 May, 2009
12 May, 2009
13 May, 2009
POLL
Q: Has the Federal Government gone too far into debt?

Yes
(86.8%)

No
(9.9%)

Undecided
(3.3%)

Total Votes: 873
Poll Date: 10 May, 2009

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