circumstances (EC) funding across 32 drought-declared regions highlights the

ongoing extent and impact of the drought right across Australia. Every state and

territory has regions EC eligible, with the majority of NSW, Victoria and SA

remaining declared.

The continuation of eligibility for EC funding will be welcome news to many producers in

drought declared regions, with most continuing to face higher operating and living cost.

The upcoming winter grain harvest will play a major role in the short term financial

viability of many producers, with most incurring a sharp jump in costs just to get crops in

the ground. While the impact of a very dry autumn and start to winter was somewhat

offset by average falls throughout July, rainfall in late winter and early spring will be

critical to the harvest outcome. The first three weeks of August has added to harvest

uncertainty, with very cold conditions across south eastern Australia and dry across the

wheat/sheep regions of NSW and southwest WA – rainfall was largely limited to southern

regions of SA and Victoria.

Figures released this week by the NSW Department of Primary Industry revealed that

66.2 per cent of the state was drought declared, up slightly on the previous month (65pc), with a

further 18.5pc of the state marginal. The majority of the regions declared satisfactory

were on the coast, along with Bourke and Brewarrina in the north-west.