Australia Weather News

The NFF says many drought-affected families are considering their futures. (File photo) - ABC

The National Farmers' Federation says it has written to Prime Minister Scott Morrison, asking him to consider providing financial incentives for drought-affected farmers to leave the land.

Exit packages are one of six measures the farm lobby has requested of the Federal Government in a bid to help those affected by what it says is unprecedented drought.

"We're in uncharted waters," NFF president Fiona Simson said.

"Many people are not able to access assistance in any way.

"We do believe that if the Government was to assist some of these businesses with exit packages, then it could actually provide some real support for those people going through a very, very difficult time."

In 2007, then-prime minister John Howard announced $150,000 grants for drought-affected farmers to sell their properties; Western Australia also trialled $150,000 exit grants in 2011.

Ms Simson said the NFF had not suggested a figure when asking Mr Morrison to "consider providing exit packages for farming families looking to exit farming after assessment of their long-term viability".

"We're suffering from a lack of data when these measures have been put on the table before, but we do believe there are a number of families now really considering their future," she said.

"With rural land prices as high as they are, [exit packages] would provide some support for those people making the difficult decision and enable them to establish themselves in a new location, with a new future in front of them.

"We're very open to what the package looks like, whether it's business support or some cash payment."

Exit packages were a request for the current drought, Ms Simson said, and not a measure to be considered in long-term drought policies.

Policy to be made public

The NFF said its request to Mr Morrison and Drought Minister David Littleproud for immediate assistance included:

  • rate relief so drought-affected farmers can pay local government charges;
  • payroll subsidies for farming businesses equal to the Newstart allowance;
  • a $2,000 top-up of the Assistance for Isolated Children allowance;
  • a two-year interest-free period on government loans; and
  • a plan to work with state and territory governments to eradicate feral pigs.
  • Earlier this month Mr Littleproud said he was waiting for the NFF to provide the industry's drought policy so he could take it to Cabinet along with the still-confidential report by drought coordinator-general Major General Stephen Day.

    The NFF, which has been critical of the ad-hoc response to drought, handed its policy to the Government last week. It will be made public today.

    It includes a request that all levels of government, industry and communities agree to work together to implement and review drought-support measures in future droughts.

    The group also wants a drought forum every two years — in good seasons and bad — for a range of government, community and farming groups to discuss issues relating to drought.

    "Those two things alone would provide fundamental change to the way governments, all governments, currently handle drought in isolation at a state or federal level."

    Mr Littleproud was not available to comment on the NFF's policy, but has consistently said that "Australia has had a bipartisan approach to drought policy since 1992".

    Last week, the Government surprised industry when it announced a new, one-off payment of $13,000 for farmers experiencing drought.

    The payment will be available to farmers forced off the Farm Household Allowance (FHA) before July 2020 because they had exceeded the time limit permitted to receive the payments.

    ABC