BUDGET 2011-12 FROSTY FOR AGRICULTURE

THE Federal Budget has spared the agricultural sector from major cuts, but has failed to deliver visionary approach that recognises agricultural industries as a key pillar of the economy.
“It’s apt that as Canberra has a morning of freezing temperatures this morning that Wayne Swan has delivered a frosty Budget for rural Australia,” QFF CEO Dan Galligan said.
“Disappointingly for Queensland farmers, they will have to wait at least another year to prepare themselves for the next drought,” he said. “The long saga that is drought reform will continue to drag on, with the West Australian drought pilot to expand and continue over another year.
“We acknowledge that the Government needs to get this right, but they have missed an opportunity to help Queensland farmers prepare for climate change and the next drought or natural disaster.”
Mr Galligan also acknowledged that rural R&D had also been largely spared from the Government axe, but added that this was ultimately the only sensible path of action for the Government to take.
“This recognises the importance of agricultural productivity growth to the economy, but a status quo for R&D investment over time means that we will continue to slide backwards in real terms,” he said. “Growth requires continued investment so our farmers can continue to be world-leaders in production and stewardship.”
He added that the Budget had been framed in the context of massive natural disasters, with the floods and cyclones to cost the economy about $9 billion and reduce real GDP growth by half a percentage point in 2010-11.
“There is a lesson here for the Government that things don’t always go to plan. The same could be said of the mining boom. We need to prepare for possible shocks to the global economy, and this week’s Budget is built on the assumption of continued strong and stable growth in returns form the mining sector.
“The Government has recognised the importance of the regions as a key pillar in the budget investment plans. But outside the overdue but welcomed investment in mental health services the reality of what this will mean for our regions is speculative.
“Agricultural organisations have said the same thing for years now: we need a strong biosecurity system, strong and growing investment in research and development and investment in risk management, particularly in relation to climate.
“In the end, farmers may be relieved that they have been spared from major pain in this Budget. But it is shame that the Government has failed to deliver something visionary, something that looks beyond electoral cycles and marginal seat politics.”