Struggling farmers to get a hand out..

[Trippy]

FARMERS struggling with debt will be offered concessional loans under a federal government package Treasurer Wayne Swan says will help secure their long-term future.

The Farm Finance package will provide $60 million in loans for each state and the Northern Territory, over two years, to help farmers restructure their debts.

Extra rural financial counsellors will be hired to work with agricultural businesses, while a tax relief deposit scheme will be overhauled, including raising the off-farm income threshold to $100,000.

The assistance will be announced by Mr Swan and Agriculture Minister Joe Ludwig in Townsville on Saturday afternoon.

The assistance package follows a rural finance roundtable held in October last year, convened by Mr Swan, who said he had been concerned to hear how farmers had been hit by the high Australian dollar and depreciating land values.

"These are big issues for our farmers and mean many of our farming businesses find themselves moving towards a negative equity situation," Mr Swan said in a statement on Saturday.

"The package we will announce today will provide relief to those viable farmers struggling with finance issues and will help secure their long-term future."

Senator Ludwig said the high dollar and falling land values had made it hard for viable farmers to manage their debts.

"Farm Finance will help lighten the load for farmers today and strengthen the foundation of Australian agriculture for the future," Senator Ludwig said in a statement.

"While there is no silver bullet solution, Farm Finance addresses the critical issues we have heard first hand from farmers in sensible and constructive way."

The federal announcement comes just days after the Western Australian government detailed a $7.8 million emergency aid package for 400 farmers facing financial ruin in that state's eastern Wheatbelt region.

The WA Farmers Federation welcomed the measures, but complained the package did not address the potential long-term future of the industry.

http://www.couriermail.com.au/news/...et-federal-loans/story-e6freono-1226630545255

OK...farmers are struggling due to the high dollar and falling land values, so we support them financially. We support the car industry but won't support manufacturing or other small business...we drop carbon tax on them to ensure their costs are higher...what gives We rob Peter to pay Paul...

 

[santaslayer]

The world is so globalised now that it doesn't make sense for governments to intervene/support any particular industry. It should be survival of the fittest and if your region is no longer competitive with a good or service, then you need to either branch out to other things or stick with what you are good at. Different countries can be good at different things.

The govt supported the car industry because it wins votes and is comforting to the Australian psych. That sorta backfired...
The agricultural/farming sector is being supported because of "National Security". We need to know that the food we eat is safe and we can cater for the population etc. Farming is also an industry with grass roots here so again wins votes...

 

[Rolf Latham]

food security and capacity is pretty important

I dont mind buying chinese goods, but draw the line at most Chinese grown produce

ta
rolf

 

[kathryn d]

http://history1900s.about.com/od/1930s/p/greatdepression.htm

The Dust Bowl

In previous depressions, farmers were usually safe from the severe effects of a depression because they could at least feed themselves. Unfortunately, during the Great Depression, the Great Plains were hit hard with both a drought and horrendous dust storms, creating what became known as the Dust Bowl.

Years and years of overgrazing combined with the effects of a drought caused the grass to disappear. With just topsoil exposed, high winds picked up the loose dirt and whirled it for miles. The dust storms destroyed everything in their paths, leaving farmers without their crops.

Small farmers were hit especially hard. Even before the dust storms hit, the invention of the tractor drastically cut the need for manpower on farms. These small farmers were usually already in debt, borrowing money for seed and paying it back when their crops came in. When the dust storms damaged the crops, not only could the small farmer not feed himself and his family, he could not pay back his debt. Banks would then foreclose on the small farms and the farmer's family would be both homeless and unemployed.

I think of this when I hear about farmers getting financial help from the government.
Probably not the same set of circumstances, but similar?

With the unpredictable droughts/floods of Australia..and the world economy to contend with, I also don't know what the solution is.

One thing I do know is, I don't want to be reliant on another country for my food. That is suicide.

 

[jonesy427]

"The package we will announce today will provide relief to those viable farmers struggling with finance issues and will help secure their long-term future."

not all farmers.

 

[Trippy]

http://history1900s.about.com/od/1930s/p/greatdepression.htm



I think of this when I hear about farmers getting financial help from the government.
Probably not the same set of circumstances, but similar?

With the unpredictable droughts/floods of Australia..and the world economy to contend with, I also don't know what the solution is.

One thing I do know is, I don't want to be reliant on another country for my food. That is suicide.

I think the difference now is these farmer may be struggling on the back of personal debt (combined with the dollar etc). I wonder if it is assesed case by case while looking why they need help..

 

[Aaron_C]

I dont mind buying chinese goods, but draw the line at most Chinese grown produce

Anything made in China that I have to put in my mouth is off-limits for me as well. Too many cases of them taking shortcuts for $$$.