THE end of government assistance for =
horticulturists and=20
wheat farmers on March 31 threatens to trigger a financial and social =
crisis=20
through much of south-western NSW and north-western Victoria.
According to NSW rural counsellors, the circumstances of farming =
families on=20
the NSW side of the Murray River are as dire as those of those of their =
peers in=20
the Victorian segment of Sunraysia and the northern Victoria Mallee.
The millions of dollars injected into the region through exceptional=20
circumstances (EC) funding during the 2000s drought is all that has kept =
many=20
farming families going.
But EC funding has been even more important to sustaining hundreds of =
local=20
businesses in towns like Wentworth, Balranald, Pooncarie, Euston and =
Robinvale =E2=80=93=20
and especially, Mildura, the region=E2=80=99s economic hub.
Every dollar that comes into the region in EC funding produces at =
least=20
another $6 worth of economic activity as it percolates through the =
regional=20
economy, according to leading Mildura businessman Ross Lake.
=E2=80=9CThere=E2=80=99s a very clear level of increase in the debt =
profile of local=20
businesses, and now we=E2=80=99ve had a disaster with mildew and =
botrytis in the=20
vineyards,=E2=80=9D Mr Lake said.
=E2=80=9CThings are clearly tight in the local economy.=E2=80=9D
The immediate impact of the termination of EC funding on family =
businesses=20
would ripple through the local economy, potentially sending many =
non-farm=20
businesses to the wall =E2=80=93 and it wasn=E2=80=99t only small =
businesses that were=20
suffering, Mr Lake warned.
Mildura Rural City Councillor Vernon Knight recently warned of the =
risk that=20
the impoverishment of many local horticulturists and their families =
could force=20
even more school-leaving age children to defer their plans to go to =
university.
He warned that a third of those who deferred tertiary studies would =
find=20
other jobs and would never make it to university.=20
They and their communities would suffer economically and socially if =
they=20
were forced to abandon plans for a tertiary education, which was =
essential for a=20
well-paid career.
Cr Knight said he had recently learned that a survey of local farm =
debt found=20
180 farmers in Sunraysia owed the banks at least $2 million each =
=E2=80=93 a collective=20
local debt of $360 million, without taking smaller farm debtors into =
account.
Mr Lake confirmed that the alarming figure had been included in =
briefing=20
papers presented to the Federal Minister for Regional Australia, Simon =
Crean,=20
before his recent visit to Mildura.
Wendy Davison, a counsellor with the Rural Financial Counselling =
Service NSW=20
Central West, said EC and Centrelink payments were all that was keeping =
bread=20
and butter on the table of most wine grape growers=E2=80=99 families.
=E2=80=9CEveryone understands that EC funding has to end, but =
it=E2=80=99s a shame that it=20
comes at such a critical time for viticulture. This will probably break =
many=20
growers,=E2=80=9D she said.
Ms Davison said many wheat farmers had got their crops off after the =
wettest=20
year on record, but the farmers feared that the Commonwealth grant =
scheme for=20
horticulturists to exit the industry could also be wound up in the next =
federal=20
budget.
=E2=80=9CTo qualify for the exit grant, horticulturists have to sell =
their land,=20
their plant, their equipment and their permanent water,=E2=80=9D she =
said.
=E2=80=9CWho would sell off their permanent water at the current, low =
price? Who=20
would want to buy their land?=20
=E2=80=9CMany farmers are caught and have no way out.=E2=80=9D
Ms Davison said many wheat farmers in south-western NSW had harvested =
crops=20
downgraded after being affected by rain but would do reasonably well =
because=20
wheat prices were good.=20
The next season promised to be highly productive, but many grain =
farmers were=20
still carrying very high levels of debt after almost a decade of drought =
and=20
would struggle to find the capital to sow next season=E2=80=99s crop.
Ms Davison said the majority of wine-grape growers were =
=E2=80=9Creally feeling the=20
pinch=E2=80=9D.
=E2=80=9CThe kids are staying home from school to help on the farm, =
because their=20
parents can=E2=80=99t afford to pay for labour at the moment, and they =
can=E2=80=99t afford to=20
replace old plant and equipment.
=E2=80=9CYou can understand the banks being a bit stringent when =
farmers carrying=20
high level of debt need further loans.
=E2=80=9CWe=E2=80=99re seeing more and more people from small =
businesses in financial=20
distress, because they=E2=80=99re feeling the effects of farmers not =
spending.
=E2=80=9CIt=E2=80=99s pretty widespread =E2=80=93 they=E2=80=99re =
suffering problems at Pooncarie because=20
some of the access roads are still closed after being badly eroded by =
the=20
storms, which reduces tourism.=E2=80=9D
In a press release issued by the Rural Financial Counselling Service =
NSW=20
Central West, CEO Jeff Caldbeck said the NSW Department of Industry and=20
Investment has recently estimated that almost half the 2.8 million =
hectare NSW=20
wheat crop had been downgraded to feed quality because of rain damage, =
at an=20
estimated cost to farmers of $850 million.
Mr Caldbeck said his organisation recognised the need to stand behind =
the=20
rural sector to ensure farmers in south-west NSW and north-western =
Victoria had=20
access to information on assistance programs and grants relating not =
only to=20
flood assistance, but to EC funds and the Climate Change Adjustment =
Program when=20
the current drought EC funding finished.
He said the drought-related EC funding was coming to an end just when =
the=20
area was recovering from recent floods and grape growers were under =
intense=20
pressure trying to manage disease.
Primary producers and small business owners within areas of NSW =
recovering=20
from drought could apply for up to $100,000 in interest subsidy support =
from the=20
NSW Rural Assistance Authority before the March 31 closing date.
He said farmers and business people suffering financial stress should =
approach their local rural financial counsellor for the support and =
assistance=20
needed to review their EC applications.
Cr Knight said plans to end EC funding on March 31 were indicative of =
the=20
lack of political understanding of the problems facing rural families =
and=20
communities.
=E2=80=9CThey look out of the window and see it raining and somehow =
conclude=20
everything is suddenly all right again,=E2=80=9D he said.
This story appeared in Wednesday=E2=80=99s Sunraysia Daily 9/3/2011. =