18 May 2016
Last week the Rural Debt and Drought Taskforce Report was released with 14 wide ranging recommendations on how to address issues of financial hardship across rural and regional Queensland. This report is a report from Taskforce Chairman Robbie Katter MP to the Queensland Treasurer.
Queensland Farmers Federation (QFF) and AgForce both valued the opportunity to be represented on the Rural Debt and Drought Taskforce and to listen to a range of views at the public hearings in December and January and to review written submissions.
QFF and AgForce believe it is important that we now work with the Taskforce Chairman to gain Government and Opposition support for a bipartisan approach to implementing those recommendations that can be quickly actioned.
The report generally identifies problems being faced in rural and regional Queensland such as the ongoing impacts of severe drought, financial pressures due to rising debt, the impact of the GFC, the loss of the live export market and general cost/price pressures and the resulting urgent human wellbeing issues.
While there was a diversity of views within the Taskforce on the best approach to address these issues there was a shared commitment to assisting those affected by drought and non-performing debt.
The broad aims are likely to be achievable through a widening of particular recommendations, especially as they relate to our existing government financier, QRAA.
There is an emerging view that it would be timely to review QRAA operations, including the eligibility criteria for their productivity and new entry loan schemes and align the guidelines to the reality of Queensland farm families and their succession arrangements in 2016 than may have been the case in earlier eras. Productivity loans should also be expanded to include additional infrastructure investment required to prepare for and manage through drought and other natural disasters.
Rural industries and commercial banks operating in Queensland should also plan to review the Queensland Farm Finance Strategy to ensure the underlying financing partnership arrangements are understood and are relevant to the risks encountered in Queensland with our highly variable and changing climate.
QFF and AgForce are already working on boosting the Multi-Peril Insurance market offerings. Agricultural industries in Queensland and the Department of Agriculture and Forestry are collaborating through the ‘Multi-Peril Insurance Working Group’ to develop products that are essential to long term risk management in Queensland.
Significant direct public investment needs to be made available to producers to build their financial management capacity and skills to build resilience. Producers must be able to access objective business assessment and planning expertise, commercial financial advisory services and access to ongoing professional support if they need to engage in to any of the mediation and financial counselling services.
Both organisations also strongly support increasing mental health and community services that adequately assist struggling rural and regional communities to manage the impacts of drought. It is essential that government recognises the impact of drought and financial stress on the communities that support our producers.
QFF and Agforce look forward to working closely with the Taskforce Chairman, government, opposition and industry to deliver a better outcome for our communities that have been affected by years of drought and financial pressures.
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