A LAST minute race is underway to find alternative funds to keep the Grains Council of Australia alive before the organisation formally folds next month because, after more than 70 years, it has run out of money.
The GCA board announced last week that it has unanimously agreed to commence winding up its activities unless a rescue package is delivered by July 1.
Contrary to earlier media reports, administrators have not been appointed, despite losses of about $356,000 in the past year and forecasts of a further deficit this year.
In a statement issued by GCA last week while chairman Murray Jones was overseas, it was revealed the winding up process would be carried out over four months.
Mr Jones said it was a "sad day for the industry".
"I am sure that you are aware of the difficulties many State and national agricultural representative organisations face due to the ongoing challenges in securing financial sustainability," Mr Jones said.
"Unfortunately, GCA has not been immune to these problems."
GCA has been in poor health for some years, but the Oil for Food scandal and the implications this had for the retention of the single desk was undoubtedly the straw that broke the camel's back.
In early 2007, soon after the release of the Cole Inquiry report into the scandal, WA Farmers Federation, followed by the NSW Farmers Association, resigned their membership over GCA's policy moves away from supporting the single desk and for apparently not listening to members who wanted a single desk kept.
The official NSW Farmers line last week, however, said it was because GCA had itself resigned from the National Farmers' Federation.
Some outspoken members of NSW Farmers' actually welcomed the collapse of GCA last week, but that is not a position supported by the NSW Farmers hierarchy.
GCA is said to have sounded out several organisations seeking their financial assistance and support through partnership opportunities.
GCA approached several relevant organisations, including GRDC, the Federal Agriculture Department, and Federal Minister for Agriculture, Tony Burke, seeking their financial support to form partnerships in conducting these roles.
In addition, Queensland lobby group, AgForce, has been on the phones trying to drum up support for GCA.
GCA performs important legislative roles on behalf of the grains industry, in particular in a formal consultation relationship with the Grains Research and Development Corporation (GRDC), determining the annual compulsory levy, and removal of the GCA will leave a notable gap in the area of GRDC accountability.
There is also an obvious gap at the table of the National Farmers' Federation which, for some time, has had no specific grains industry representation.
NFF president, David Crombie, said it was disappointing to see a peak body collapse, particularly in the grains industry, which he said was very fractured.
"The grains industry is such an important industry for Australia and it's important that we have grain growers around our table at NFF," Mr Crombie said.
"While they haven't been a member at NFF for some time, it's disappointing to have them collapse.
"We'd be looking for another nationally significant body to rise out of this and take up membership with the National Farmers Federation."
Mr Crombie said NFF has changed its constitution – due to come into effect on July 1 – which broadens the membership scope and "makes NFF easier to do business with".
"So if we're unable to get a nationally representative grains body around our table we'd certainly encourage grain growers to get together and join us in the associate membership category," Mr Crombie said.
He said it was really up to the grains industry to sort themselves out and get a new national body together, adding there was no real role for NFF on that front.
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