QFF CEO Dan Galligan said the Queensland Water Commission had released its draft Underground Water Impact Report (UWIR), which contributed useful data for gas companies, policy makers, farmers and the community as they seek greater understanding of the aquifer impact of CSG.

He said QFF and its members, and in particular Cotton Australia, were paying very close attention to the impact on the Condamine Alluvium.

“The Condamine Alluvium is an incredibly important water resource for communities and irrigated agriculture in the region, including the production of crops such as cotton, grain, and horticultural crops,” Mr Galligan said.

“The QWC says that the average drawdown of this aquifer will be half a metre and the maximum will be 1.2 metres. The reality of the situation is that this may be the ‘least bad’ outcome, given the speed at which CSG is being developed and pursued politically.”

Mr Galligan said that the fundamentals of CSG must continue to be that it is underpinned by clear, independent  and publicly communicated science and that its impacts – particularly upon groundwater – were monitored in very fine detail.

“The safety net must be the ‘make good’ provisions, and where the assessed risk is high or uncertain we must have the foresight to amend development approvals and avoid the impact altogether.

“It is crucial that the science of CSG is sound, that the make-good agreements are iron clad protection for farmers, and that resource companies take responsibility for any negative impacts they create. Rural businesses must not be put at risk from this development.

“If farmers with bores are going to be disadvantaged by CSG development causing aquifer draw-down, then they deserve to be compensated and some confidence that the harm can be rectified. They also need confidence that the activities occurring under the ground aren’t destroying a valuable and long-term resource.”

AFTER more than two years of complex investigations and negotiations, the Queensland Competition Authority (QCA) has produced its final report on irrigation water prices for farmers accessing water from SunWater.

It is a report that will be widely criticised by irrigators across Queensland, just as QFF cannot fully support its recommendations.

If the QCA recommendations are adopted, water prices for Queensland’s eight major SunWater irrigation regions will ratchet up in order to meet the costs assessed by QCA as being required to operate the systems.

These price hikes are a serious threat to the viability of thousands of Queensland farm enterprises. For example, in the Lower Mary and Bundaberg regions, prices will increase by up to 50 percent and irrigators will be paying over $100 per megalitre for their water supply by 2017. Prices in Mackay and the Lower Dawson areas will climb significantly to around $95 per megalitre.

There is also a substantial risk that most of these irrigation regions will still be operating at well below cost recovery when prices are again reviewed in 2017.

This is because QCA’s investigations were not able to adequately assess the substantial costs of flood damage and have not taken into account the very high costs of upgrading metres, which will be required in all irrigation schemes over coming years to meet national standards.

Submissions directly from farmers and farm groups have explained at length why these price hikes are not sustainable for farmers and that they would have serious negative repercussions for farm businesses and communities.

In addition, if increases in electricity costs outstrip the forecasts that QCA has used to assess prices, then the additional costs will be passed on to irrigators.

The situation seems only ‘less bad’ for irrigators on river systems. These river based irrigation systems, according to QCA would only face increases that would cover inflation – but following Government policy guidelines the starting price is set to maintain existing revenue for SunWater.

QFF maintains that prices should not be set in the interests of simply maintaining a profit for SunWater, which is a government-owned monopoly service provider.

Irrigators are disappointed in the entire process for several reasons.

Our submissions have asked repeatedly that QCA find efficiency gains for SunWater to act upon, with one example being high head-office operating costs. The final report has failed to find substantial efficiency gains and has recommended prices for most regions that show little change from the draft report.

It is important to note that part of the problem is that the terms of reference of this inquiry, as established by the previous government, were framed in a way that would make major irrigation regions unviable.

The QCA investigations have also been delayed, time-consuming, and costly due to SunWater providing poor information. We cannot go through this process again in five years when prices are reviewed, so the State Government must take action now.

In all, there are several opportunities for the new Queensland Government and the Minister for Energy and Water Supply to address and improve the situation, and help ensure a sustainable future for our State’s irrigation communities. We ask the Minister to:

• Approve prices in all river systems that are recovering costs rather than setting prices to maintain existing revenue and a significant profit to SunWater;
• Freeze prices in all eight distribution systems at 2011-12 levels for at least 12 months;
• Initiate an immediate review of these distribution systems to recommend how they can be restructured to provide opportunities to increase efficiencies and reduce costs; and
• Investigate the feasibility of moving these distribution schemes to local management

These matters cannot be shelved for addressing at a later time.

QCA has also listed a number of recommendations for investigation which include much-needed changes in SunWater’s approach to consultation.

If we are to ensure the best possible footing for our irrigation regions over the next five years, these issues need to be actioned as soon as possible.

In the end, the prices will be determined by the Minister and we consider that many of the major irrigation regions of Queensland will become unviable if we are left with prices determined in accordance with the terms of reference for this investigation, which were set by the previous State Government

LAST week’s Federal Budget spared the agricultural sector and its related government expenditure programs from the budget cuts that were faced by some other sectors of government expenditure, and made modest but welcome investments in some areas related to primary production. Nonetheless, some budgetary cuts and increased revenue measures will still be felt by rural and regional communities, either directly or indirectly. These include:

• An increase in heavy vehicle road charges, which has been predicted to raise $698 million over four years;
• The removal of funds for Farm Ready;
• Removal of Funds for the National Weeds and Productivity Program;
• And removal of components of the Community Networks and Capacity Building Program

Areas of new funding or extended funding commitments include:

• Increased capacity for the Bureau of Meteorology to respond to severe weather, allowing the employment of new meteorologists and flood forecasters.
• Funding for a new quarantine and biosecurity facility in Melbourne.
• Continuation of funding for Caring for Our Country for five years from 2013-2014.
• Additional funds for water infrastructure programs and on-farm irrigation efficiency.

QFF welcomes these commitments, and particularly the commitment to Caring for Our Country, which has been one of the standout programs for delivering both environmental and agricultural benefits in Queensland agricultural communities in recent years. The continuation of this program will allow land managers to continue delivering on-ground results for their farms and the environment.

Importantly, all of these budgetary measures listed above, both positive and negative, will be overshadowed by the impact of the carbon tax, which is expected to have a significantly detrimental impact on regional economies and food and fibre value chains.

Finally, it would also seem that some of the reporting of the budget being a ‘tough budget’ based on returning it to surplus has been exaggerated. It would seem that optimistic forecasts for a rebound in revenue has allowed the government to emphasis supposed cuts that help target a surplus, when in fact there is a real possibility that the forecasts could be substantially wrong in terms of targeting a $1.5 billion surplus. For example, the current financial year deficit had been earlier forecast at $22 billion, but the final number is now predicted to be $44 billion. With the targeted surplus so small, and a large margin for error, the surplus is by no means a fait accompli.

QCA FINALLY RELEASES SUNWATER PRICE REPORT

AFTER more than two years of investigations, the Queensland Competition Authority has released almost 3000 pages of reporting, in several volumes, on proposed new water prices for SunWater irrigators for the coming five years. SunWater, a Government owned corporation, manages the distribution of water for irrigated agriculture via either river based delivery systems or eight specifically constructed large channel based systems. QFF issued this media release on Friday, stating that we cannot fully support the report, which is proposing large and unsustainable increases in irrigation water costs. The recommended QCA prices are especially bad news for irrigators in the eight major irrigation channel systems, where prices will ratchet up in order to meet the costs assessed by QCA as being required to operate the systems. For example, in the Lower Mary and Bundaberg regions, prices will increase by up to 50 percent and irrigators will be paying over $100 per megalitre for their water supply by 2017. Based upon QCA’s current assessments, farmers in the Eton, Theodore and Lower Mary channel irrigation systems will still require ongoing price increases well beyond 2017 to recover the assessed costs.

QFF has called on the new State Government to seize the opportunity and make several adjustments to the process that would help deliver a sustainable future for our irrigation systems. QFF is seeking a meeting with the new Minister for Energy and Water supply to discuss these issues. More details are available in the press release, and also QFF President Joanne Grainger’s column in the Queensland Country Life this Thursday.

PERONAL PROPERTY SECURITY REGISTER

QFF participated in a recent briefing hosted by AgForce and conducted by the Registrar of the Personal Property Security (PPS) register where the new rules for the national register were explained. These came into effect 30 January 2012 and are part of  the reforms designed to make the use of personal property as security for finance (liens, personal loan collateral, supply contracts, consignments, agistments, leases, etc, but not mortgaged land and buildings) easier and more transparent. Essentially this new register is a one-stop online resource that replaces some 70 older state and national registers which have been rolled into one. Not all “personal assets” are eligible, with exceptions being those where States wish to keep their own registers, notably water and fishing rights and licences. As with all matters to do with personal financial arrangements, QFF recommends third party advice for assessment of the implications of these changes for any individual farm or agribusiness operator. However, the government website provides succinct fact sheets and Q&A advice and a user friendly registration and search facility. QFF therefore suggests you start your research here.

SUPERMARKETS ACCUSED OF PRESSURING SUPPLY CHAINS

QFF is concerned by several reports this week that truck drivers are being placed under unreasonable pressure by the major Australian supermarkets. Throughout the week, the Transport Workers Union staged several protests at Coles stores to highlight what they describe as impossible deadlines, which is causing a safety risk for drivers and other road users.

While some farmers have established a positive working relationship with the major supermarkets, others have had a less satisfactory relationship, and would have empathy for the concerns of truck drivers.

The mounting pressure that the supermarket duopoly is placing on other sectors of the supply chain is a clear indication of their very strong influence and dominance of markets and supply chains, and yet further evidence that action is needed to improve an increasingly fractured relationship and protect other components of supply chains.

MEMBER NEWS

TAP MUST BE TURNED OFF ON INIQUITOUS WATER PRICE HIKE

CANEGROWERS has called on the new Queensland Government to put massive water price hikes recommended by QCA, under a directive of the previous cash-strapped government, on hold. The peak group has called for much-needed time to be allowed by the new government for robust data to be put together, before a decision on what is a massive cost to the vast majority of sugarcane growers, is decided. ”This will rip profitability from irrigated sugarcane farms across Queensland. The recommended water prices are unsustainable and unjustifiable. They are inconsistent with the new government’s vision of agriculture as one of the four pillars of the Queensland economy,” CANEGROWERS CEO, Steve Greenwood, said. Following last week’s release of QCA’s recommendations on SunWater irrigation prices, CANEGROWERS has called on the Queensland Government to reject the recommended price increases and immediately freeze irrigation water prices for distribution schemes at current levels until a further review has been conducted.  “QCA’s recommendations are coloured by an ill-conceived and poorly specified terms of reference designed to increase government revenue,” explains Greenwood.

AUSTRALIAN PORK INDUSTRY REFUTES BACON TAX CLAIM

THE reported increase in the Australian Pig Slaughter Levy was misrepresented by media in last week’s Federal Budget announcement, with claims of a new ‘bacon tax’. APL CEO Andrew Spencer said “the increase to the pig slaughter levy has been completely misreported and is not a “bacon tax’”. The Pig Slaughter Levy is collected from producers to support the peak industry body Australian Pork Limited (APL) in undertaking Marketing, Research and Development (R&D) and Policy activities on behalf of the industry. “This slaughter levy increase is revenue neutral from the government’s perspective,” Mr Spencer said. “The listing of the levy increase sought by the pork industry in the Budget Papers is a mere formality which in no way represents a tax on bacon. Whilst the government does collect the levy on industry’s behalf, it passes it straight through to APL making it a budget neutral item.”

OTHER NEWS

INFORMATION SESSIONS ON NATHAN DAM EIS

SUNWATER is holding information sessions this month on the proposed Nathan Dam and associated pipelines and the Environmental Impact Statement that was recently released for public comment. SunWater says that this consultation period will be an opportunity for interested members of the local community to learn more about the project and share their views. Those unable to attend an information session can visit one of the library displays located in Dalby, Chinchilla, Wandoan, Taroom, Theodore, Miles and the State Library of Queensland. For further details about the project, the EIS, public display locations and the approval process contact SunWater on 1800 158 651 or visit www.sunwater.com.au/future-developments/nathan-dam. For details on the EIS process and how to make a submission visit http://www.deedi.qld.gov.au/cg/nathan-dam-and-pipelines.html and enter a search for ‘Environmental Impact Assessment’. The EIS consultation period for the Nathan Dam and Pipelines Project ends on June 5. Locations:

Dalby	Myall Youth and Community Network Centre	Thu 17 May	2–4pm
Chinchilla	Chinchilla RSL Memorial Club	Fri 18 May	9–11am
Wandoan	Wandoan Cultural Centre	Fri 18 May	2–4 pm
Taroom	The Leichardt Hotel	Sat 19 May	9am–12 noon
Theodore	Theodore Hotel Motel	Sat 19 May	2-5pm

CRAWFORD FUND CONFERENCE – OCTOBER

THE Crawford Fund’s 2012 annual development conference will focus on the dynamic interactions between a range of competing uses for land and natural resources, while addressing the need to feed the world’s growing population in the face of the constraints and challenges of climate change. The conference is on in Canberra on October 9. More information is available here.

SunWater, a Government owned corporation, manages the distribution of water for irrigated agriculture via either river based delivery systems or eight specifically constructed large channel based systems.

After a two year investigation the QCA has released a final report into water prices for irrigators in all SunWater irrigation regions.

QFF CEO Dan Galligan said that some of its proposed water prices would be a ball and chain for Queensland irrigators, and stood a high risk of putting the new State Government well behind in terms of its policies to double food production by 2040 and to see agriculture as one of the four pillars of the State economy.

“The recommended QCA prices are especially bad news for irrigators in the eight major irrigation channel systems, where prices will ratchet up in order to meet the costs assessed by QCA as being required to operate the systems,” Mr Galligan said.

“These price hikes are a serious threat to the viability of thousands of Queensland farm enterprises. For example, in the Lower Mary and Bundaberg regions, prices will increase by up to 50 percent and irrigators will be paying over $100 per megalitre for their water supply by 2017.”

Based upon QCA’s current assessments, farmers in the Eton, Theodore and Lower Mary channel irrigation systems will still require ongoing price increases well beyond 2017 to recover the assessed costs.

Most of the other channel systems should achieve cost recovery targets by the end of 2017. However, this assessment does not take into account cost pressures between now and then associated with such things as improved metering standards, and flood recovery costs.

Mr Galligan added that irrigators on most river based irrigation systems would only face increases that would cover inflation but following Government policy guidelines the starting price is set to maintain existing revenue for SunWater. QFF maintains that prices should not be set in the interests of simply maintaining a profit for SunWater.

QFF has called on the new State Government to seize the opportunity and make several adjustments to the process that would help deliver a sustainable future for our irrigation systems. QFF is seeking a meeting with the new Minister for Energy and Water supply to discuss these issues.

“In the end, the prices will be determined by the Minister and we consider that many of the major irrigation regions of Queensland will become unviable if we are left with prices determined in accordance with the terms of reference for this investigation, which were set by the previous State Government,” Mr Galligan said.

AUSTRALIA is in a rare position where the country is free drought declarations, with the conclusion of Exceptional Circumstances (EC) assistance for two areas of NSW a few weeks ago.

Unfortunately Australia is also now drought policy free which, for a country so prone to weather extremes including prolonged droughts, is the bizarre outcome from exhaustive reviews and policy inertia.

At the end of April, the nation’s Agriculture Ministers met and apparently agreed to the Minister Ludwig’s proposal that officials develop new proposals for a future drought policy package beginning July 1, 2014.

Farmers are left frustrated that the reform of Federal drought policy has become almost as long and torturous as a drought itself.

The Federal Government initiated several simultaneous reviews of drought policy in 2008, received comprehensive advice for reform from the Productivity Commission in 2009, with this leading to a trial of new programs in Western Australia beginning in 2010.

At the time, QFF urged that the trial should include Queensland as being more representative of different farming systems especially those reliant on irrigation, and also as the State emerged from drought this offered a great opportunity to prepare for future dry times. We were also clear that the trial needed to progress quickly so that the reform agenda could be adopted broadly in the eastern states.

Unfortunately, neither of these policy requests were acted upon, and Queensland farmers are still waiting for some policy certainty.

The National Drought Pilot Review Panel, led by Mick Keogh, has done a good and thorough job with its investigation of the WA pilot and made many sensible policy recommendations.

However, there has been significant inertia from government on enacting changes to drought policy.

Following a recent meeting of the Standing Council on Primary Industries, we have been told that the new policies could start to be implemented nationally from July 1, 2014.

Such a long delay is frustrating and has the potential to fall short of its potential, especially if a series of El Nino years eventuate.

QFF was recently critical of the Federal Government decision to end the EC interest rate subsidy with no replacement program. While we support the transition away from this policy, scrapping it on its own has come across as the government adopting a small part of a policy reform to suit its own needs.

The Productivity Commission and other stakeholders are generally in agreement that the EC interest rate policy has been less than adequate – but even so it distributed over $350 million to over 10,000 Queensland farmers during the nine-year drought.

What we all want to see is this investment spent in a more productive way in the future, not simply withdrawn back into treasury coffers, which appears to be on the cards.

Therefore, it needed to be replaced with policies that will help farmers deal with drought and extreme climate variability proactively.

Unfortunately, the announcement from our peak Council of Governments means no forward progress with the updating of drought policies and programs.

Governments do not have to reinvent the wheel on this one; they have comprehensive recommendations that will improve the way they assist in times of need created by weather extremes.

Reform requires the full range of recommendations to be implemented, not just one item with a budget focus. It needs the productivity focus called for by both the Productivity Commission and the Pilot Review committee.

This dithering around the edges of such an important policy areas is most frustrating for everyone trying to boost agriculture productivity, as it suggests that governments are not committed partners in the reform processes.

THE Queensland Government has made its submission on the proposed Murray-Darling Basin Plan. QFF supports the government’s call that further explanation is required around the determination of sustainable diversion limits, particularly in relation to the northern shared zone, as it specified last week when announcing its submission.

QFF has continued to lobby on the impact of water reductions for Queensland communities reliant upon irrigated agriculture. QFF President Joanne Grainger reiterated these points and others in her weekly column to the Queensland Country Life last week, available here. QFF will continue to work with the new State Government as the Basin planning process continues to ensure the best outcomes for Queensland irrigation communities.

FEDERAL GOVERNMENT DETAILS COMPANIES SLUGGED WITH CARBON TAX

THE Federal Government has released the details of the 250 companies that will be liable entities for the carbon tax, available at this website. The list contains companies including Incitec Pivot, CSR, and Mackay Sugar and also Queensland councils Brisbane, Gladstone, Western Downs and Maranoa. The fact that the regional Queensland councils will be slugged with the tax seems a particularly heavy-handed hit to regional communities, when it would seem that under previous de-amalgamated council regions these regions would have been exempt from the tax (only a total of eight Australian councils are on the list). Rural and regional communities continue to be highly concerned about the looming negative impact of the carbon tax, and also question its effectiveness.

INPUT SOUGHT ON GASFIELDS COMMISSION

QFF reminds Weekly Bulletin readers that regional communities are being encouraged to have a say on the role and membership of the new GasFields Commission. The Commission is aimed at managing the coexistence between landholders, regional communities and the coal seam gas industry in Queensland. Feedback and suggestions about the role and functions of the commission must be made in writing directly to the Chairman and ideally limited to two to three pages with the author’s name and contact details clearly marked. Chairman of the GasFields Commission, John Cotter, is also taking expressions of interest from people who wish to nominate to become a commissioner. Email GasFieldsCommission@qld.gov.au or mail submissions to the Chairman, GasFields Commission, PO Box 102, Toowoomba, 4350. For information visit www.csg-lng.industry.qld.gov.au.

ENVIRONMENTAL INCIDENT INVESTIGATED

THE Department of Environment and Heritage Protection is investigating a release of drilling fluid associated with coal seam gas activities into the Condamine River, downstream of the Chinchilla Weir. The investigation began immediately after notification of the incident from QGC contractors, who have been constructing a pipeline beneath the river. Drilling fluid seeped from the drill hole up into the banks of the river and made its way into the river where it was contained within a wall of sandbags and pumped out. The contractors had stopped drilling work at the site.

QCA SUNWATER REPORT DUE THIS AFTERNOON

THE Queensland Competition Authority (QCA) final report into water prices for SunWater irrigation regions is expected to be released later today. QFF has been continually involved in the two-plus year QCA investigation, and is concerned about the implications of the report’s recommendations. QFF will update members as it is released today.

NEW COMMITTEE FOR MURRAY DARLING BASIN

THE Murray Darling Basin Authority is establishing a new committee to advise on social, economic and environmental sciences. The Authority is seeking people who are experts in hydrology, ecology, social sciences and economics to form the committee, which will be established in mid-2012, with a view to contributing to the 2015 review. QFF welcomes the review period being fully informed on important issues, however it is of some concern that further panels have been formed to assess socio-economic issues after the end of the consultation period for the Basin Plan, and so close to when the final Basin Plan is due.

MEMBER NEWS 

GET YOUR CAMERAS OUT

COTTON Australia is this year celebrating 40 years of service to the cotton industry, and is launching a photo contest to help celebrate. CA is looking for creative and beautiful images that tell the story of cottonand the comp will be judged by world-renowned and multi-award winning photographer, Jack Atley.  There are three categories, with no restrictions on how many images you can enter:

•  Cotton Farms – landscapes, the things we grow;

•  Cotton People – at work and play; and

•  Cotton the Product – grown, used and worn.

Cotton Australia will be awarding over $14,000 worth of prizes to the winners of Click! To enter email your images to click@cottonaustralia.com.au, along with your name, contact phone, address, the category you are entering and a caption for each image. For more information and competition rules, go to www.cottonaustralia.com.au/click

GROWCOM WELCOMES DEBATE ON OPPORTUNITIES FOR FOOD PRODUCTION IN THE “ASIAN CENTURY”

GROWCOM has welcomed comments by Prime Minister Julia Gillard that Australia could become a major contributor to Asian food requirements and boost Australia’s economy and export trade. The Prime Minister last week said Australia could become a potential “food superpower”, helping to feed increased populations in Asia through building Australia’s food-processing industry to supply Asia’s growing consumer markets. Growcom Chief Executive Officer Alex Livingstone said the prospects for industries such as horticulture were bright but only if government’s fundamental policy settings were tweaked to ensure the growth of food production and exports. He said that the opportunities for horticulture lay in providing expertise and exporting fresh, high quality produce rather than processed goods. “Exports of processed fruit and vegetables have been stagnant since the 1980s. Ninety-five per cent of the value of food exports occurs in the bulk sector,” he said. “Processed fruit and vegetables have revealed no comparative advantage and processed vegetable exports have even declined since the end of the 1990s due to Australia’s high wage structure and, more recently, the high Australian dollar.” Mr Livingstone said that the major opportunity for Australian horticulture in Asia was the growing population and urbanised middle class that is seeking high quality produce. This opportunity is further enhanced by Australia being counter-seasonal to most of Asia. “However, Australian farmers can currently supply enough food for Australia but less than 1 per cent of the Asian population at current population levels,” he said. “Australia needs a strategic approach to identifying and developing new high value and high growth export markets.”

MACKAY SUGAR CONGRATULATED ON MOSSMAN MILL ACQUISITION

CANEGROWERS says news of acquisition of Mossman Central Mill by Mackay Sugar has been met with excitement around the industry. Australia’s sugarcane industry is undergoing a resurgence and now talk filtering in of the industry’s expansion to meet the demands of the burgeoning Asian market is likely to be led by an unlikely contender. ”Here we have an Australian-owned sugar milling company taking the front seat and driving the expansion. This is a group making no bones about its clear end game of increasing cane supply,” says Steve Greenwood CEO of CANEGROWERS. Local growers have been told they could expect a 25 percent increase within the first four years, driven by cane development incentives such as the Secure the Future and Plant Loan Scheme and underpinned by forward pricing options currently available to growers supplying Mackay Sugar’s three sugar mills in central Queensland. According to CANEGROWERS, local growers are stoked to learn that their sugar will continue to be marketed through industry-owned body, Queensland Sugar Limited.

OTHER NEWS 

INVIGORATING AGRICULTURE EVENT

A NEW conference called ‘Invigorating Agriculture’ is being held in Adelaide in August this year. The conference is aimed at early career agricultural practitioners – those who have experienced 5-10 years’ experience   and who are ready to take the next steps into senior agri-management or potentially establish their own business in agriculture service. The program is available here. Day 1 is intended to introduce a team of outstanding professionals in agriculture who are doing their bit to ‘invigorate agriculture’. Day two is all about professional development. From public speaking training, to agribusiness marketing techniques, to social media commentary to the art of mastering resilience, this aimed at take-home practical information.

THE Murray Darling Basin Authority has called time on submissions to the proposed Basin Plan, but the water reform process is far from over for all those with a stake in the health of this vast river system.

The Authority is now reviewing about 12,000 submissions lodged over the last 20 weeks of consultations, which was preceded by numerous other submission rounds, focus groups, community meetings, and other consultation events.

With these final submissions, it amounts to about 200 submissions per day that the Authority must deliberate upon in the next two months if it is to incorporate the information into a revised draft plan to present to the Murray Darling Ministerial Council mid-year.

Even discounting the very large number of campaign submissions which were entered via websites, there are serious questions about how much consideration the Authority will give to these submissions.

However, the real test will be whether the Authority can deliver a final plan that would be accepted by communities and irrigators, which they have failed to do with the proposed Plan.

The Authority has failed one of the most fundamental tests for irrigation communities, and that is to justify its proposed Basin-wide cutback of 2750 gigalitres.

Regional communities have also long been emphasising that improving the health of the Basin’s rivers can be achieved in a number of ways other than water buyback.

The proposed Plan fails to justify the provision of specific figures of environmental water and to provide plans for the efficient use of this environmental water.

We are faced with dealing with a huge negative socio-economic impact on regional communities, without the confidence about precisely what would be achieved for the environment.

Also, continued reliance on the current recovery programs – buyback and on-farm water use efficiency investments – comes at a great cost to the Federal Budget, and may fail to meet the targets if sufficient willing participants for either recovery program cannot be found.

We are therefore concerned about what process the Government would take if diversion limits cannot be achieved through voluntary means, which may impact adversely on either security of entitlements or reliability of those entitlements.

One solution that QFF has proposed in our submission is a localism initiative, which would allow local entitlement holders and the community to investigate solutions that minimise the economic impacts, in conjunction with the Commonwealth and State.

This inadequate provision for the socioeconomic impacts of the Basin Plan has probably been the draft’s biggest flaw – and therefore localism is one practical means of seeking to rectify this problem in the final Plan.

The proposed Plan tries to deal with all these uncertainties by allowing for a review of progress in 2015.  While QFF supports this approach, the proposed Plan fails to explain what the review will cover.  This may suit Canberra bureaucrats but leaves irrigation communities facing uncertainty, particularly over the next three years.

The next step in the process is for the Authority to deliver a final Plan to the Environment Minister Tony Burke.  He may seek changes to the Plan before submitting it to the Parliament which would have 15 sitting days to accept or reject it.

It remains uncertain what the parliament would do with the Plan given the unfertile political ground in Canberra.

However, irrigators will be looking for certainty from the process and certainly won’t be wishing for the Plan to become a political fatality and thus initiating more and more public debate about the need for a solution.

It is clear that the Authority will need to deliver significant improvements to its final Plan if it is to be accepted by irrigators and the community.

QUEENSLANDERS have decided on councillors and mayors for local government elections, held at the weekend. With local government playing an important policy role for Queensland’s rural areas, QFF has worked with the Local Government Association of Queensland to prepare a series of videos detailing important information for local government planning. The information is useful for incoming councillors and anyone with an interest in rural planning policy. The videos can be viewed at the QFF website here. Results of the polls are available from the Electoral Commission of Queensland website.

QFF MAKES ITS SUBMISSION ON ELECTRICITY TARIFFS

QFF has made its submission to the Queensland Competition Authority on electricity tariffs, as part of a review currently taking place. QFF has outlined the substantial negative impacts that proposed changes to electricity tariff structures could have upon many farm businesses in Queensland. Some of the tariff changes would also reduce the incentive for irrigators to use water during off peak times, which is more water efficient through reducing losses from impacts such as evaporation and wind. The full QFF submission is available here.

ABS CPI MARCH QUARTER 2012 INCREASES 0.1 PERCENT

THE Australian Bureau of Statistics last week reported that the Consumer Price Index (CPI) increased 0.1 percent in the March quarter 2012, compared with no change in the December quarter 2011, which is expected to be a sufficiently low to allow the Reserve Bank to trim interest rates at its meeting tomorrow. The low CPI figure included a fall in fruit of about 30 percent, which included the ongoing recovery of the banana industry from Cyclone Yasi last year. The full details on the CPI numbers are here.

REGROWTH VEGETATION WORKSHOPS AT PINELANDS HALL

QFF is holding Regrowth Vegetation Code workshop at Pinelands Hall, about seven kilometres north of Crow’s Nest on the New England Highway. The participants will be given a background to Queensland’s Vegetation Management Act (1999) and vegetation framework, as well a detailed session on the recently released Regrowth Vegetation Code policy and procedures.  Landholders who do not have a Property Map of Assessable Vegetation (PMAV) or have not recently checked the DERM website to check their vegetation status on their property are encouraged to attend.  Emu Creek Catchment Landcare Group is hosting the workshop which will begin with lunch at midday; then a rabbit-control-on-property lecture, before the Regrowth Vegetation Code presentation.

When: Saturday, May 5 2012.

Time:  Midday then Regrowth Code presentation between 1.30pm-4.30 pm. Where: Pinelands Hall on the New England Highway.

The workshops are free and lunch and afternoon tea will be provided.  RSVP to Frank Burgess on: 0427 984 161.

NEUTRAL ENSO CONDITIONS DOMINATE PACIFIC

THE El Nino / La Nina Southern Oscillation is remaining is remaining in a neutral pattern, the Bureau of Meteorology reported last week. These conditions are expected to persist at least into early winter. Some, but not all, climate models note an increased risk of El Niño conditions evolving during winter or spring. Historically, about 70 percent of two-year La Niña events (as we have recently experienced) are followed by neutral or El Nino phases.

MEMBER NEWS

DICTATOR-LIKE MOVES BY MSF UNACCEPTABLE SAYS CANEGROWERS

CANEGROWERS says it appears that MSF Sugar is trying to pull the wool over growers’ eyes, in what can only be described as a very tricky move by the milling group. “We are appalled that the management of MSF Sugar are now trying bypass the appointed bargaining agents and to go around the rigours of collective bargaining provided by a strong representative body,” said CEO of CANEGROWERS, Steve Greenwood. Greenwood says it is important to remember why CANEGROWERS came into being in the first place – to bring the best interests of the thousands of smaller farmers together to give them strength – a united front – when it came to bargaining an agreement with the large corporate entity that is the sugarcane mill.

            MSF Sugar said yesterday that it planned to discontinue using QSL to market sugar beyond 2013. Tablelands, South Johnston and Babinda cane growers supplying MSF Sugar in the north are questioning why MSF Sugar would choose to remove itself from using QSL without the support of its cane growers. “We are extremely disappointed by this communication from MSF Sugar – especially given strong grower feedback that they want their product to be sold through QSL because it is a marketing system which is owned by growers and millers, making it a highly transparent business.” According to CANEGROWERS, QSL has long been the industry-preferred sugar marketing model, which was set up by the Australian sugar industry itself, to capitalise on the benefits of amassing the vast tonnages of Australia’s raw sugar destined for the export market – around 80% of production – and using that bulk power to secure the best prices for Australian sugar on the international market.

OTHER NEWS

SURVEY FOR FARMERS

LANDCARE Queensland is conducting the first survey in several years on what farmers across the country think about Landcare, now and into the future. Since its inception over 20 years ago Landcare has grown to be a major movement in Australia and has made a significant environmental and financial difference to farmers across the country. However, the organisation is seeking to better understand the opinions and needs of farmers today and what they want for the future. Click here to participate in the primary producers’ survey.  A second survey targeting the specific needs of Landcare and related groups has also been developed, and it is available here. Surveys close May 11.

CHANGES announced to Federal Government drought support programs are piecemeal, and leave farmers frustrated that the full recommendations of an exhaustive drought policy review process are not being implemented, the Queensland Farmers’ Federation said.

As announced by Minister for Agriculture, Fisheries and Forestry, Joe Ludwig, the Exceptional Circumstances interest rate subsidy will end on June 30.

QFF CEO Dan Galligan said that QFF supported the replacement of the EC interest rate subsidies with more complete farm business support programs that were proactive rather than reactive – but this was not what Minister Ludwig announced today.

“Where are the policy initiatives that would help farms transition to better preparedness for future droughts and deal with extreme climate variability?” Mr Galligan said.

“The Productivity Commission and stakeholders are generally in agreement that the EC interest rate policy has been less than adequate, but even so it distributed over $350 million to over 10,000 Queensland farmers during the nine-year drought, and what we all want to see is this money spent in a more productive way, not simply withdrawn back into treasury coffers.

“There has been no detail on any such initiative in today’s press release from the Minister, and Queensland farmers will feel quite rightly duded by our national government.

“Drought policy reform has been an exhaustive process, and Mr Ludwig is right to say that now that Australia is ‘drought free’ it is the time to implement reform.

“But reform requires the full range of recommendations to be implemented, not just one item with a budget focus. It needs the productivity focus called for by both the Productivity Commission and the government’s own Pilot Study Review Committee.

“This policy inertia is most frustrating for everyone concerned with boosting agriculture productivity.”

THERE is a mammoth job ahead of the new Queensland Gasfields Commission and the State Government if they are to meet the targets of restoring balance to coal seam gas expansion, and ensuring the best outcomes for regional communities as new projects race ahead.

The Commission, announced less than one week ago and with well-respected agri-political identity John Cotter at its helm, has been tasked with collecting community feedback and striking the right balance in the interests of landholders, community groups and the environment.

It is very positive sign from the Newman Government that it has worked so quickly to fulfil its election commitment of establishing this commission, although the coming weeks and months of the Gas Commission’s infancy will be the real test to see if it can bring about a much more positive framework for the CSG industry.

QFF sees that initially the Commission’s top three primary roles are clear. It must facilitate open communication for all stakeholders, it must take a strong role and have oversight of the process for negotiating land access agreements to ensure they are conducted fairly and appropriately, and it must step into role of understanding the risks, hazards, responses and in some cases opportunities associated with groundwater management.

The Government must also give the commission legislative firepower to ensure it can do its job effectively, which includes mechanisms for enforcing the correct procedures and policy.

This could include it having the power to make it mandatory for information on water management to be published online.  By extension, it will be important for the Gasfields Commission to determine its role between or instead of the Queensland Water Commission, which has the role of monitoring and assessing the cumulative risks to groundwater impacts.

All of these activities must underpin the objective of ensuring that issues with CSG development, both above ground and underground, are resolved before impacts arise. Currently, and under the previous government, farmers and the community have not had the confidence that this was occurring – hence the very need for the Commission.

All this is happening to a tight timeline being put forward by the Newman Government, in line with its various 30-day and 100-day commitments. The Commission is intended to be up and running within three months, which will put considerable pressure on the drafting of legislation and its rapid passage through Parliament.

Initial community feedback on both its powers and expressions of interest to become a commissioner is due in less than one month, by May 25.

The Gas Commission has a mandate to ‘strike the right balance’ and this is something that will be broadly welcomed by farmers.

Mr Cotter and his team of a further six commissioners (which will be appointed in coming months) have a huge responsibility, but for the sake of the future profitability of the farmers of the State, QFF will work with them every step of the way.