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MORE HELP FOR FARMERS UNDER $57 MILLION DROUGHT PACKAGE

Apr 29, 2019 | Latest News

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Federal Member for Gippsland Darren Chester has welcomed a new package of initiatives designed to help Gippsland’s drought-affected farmers and local communities, but says there’s still more support required.

The Prime Minister announced the $57.4 million package of new drought assistance measures this weekend, bringing the total amount the Federal Government is investing in drought support to more than $6.3 billion.

Included in the package is $1 million for Latrobe City under the Drought Communities Program to support local jobs.

The new measures include:

•       A new restocking and replanting concessional loan of up to $200,000 with a two year interest free period and no interest accrual available through the Regional Investment Corporation;
•       Changes to the Farm Household Allowance, including making payments available to farmers for four in every 10 years and the $5 million farm asset threshold becoming permanent;
•       $7 million to establish a pilot rural financial counselling service to help small regional and rural businesses with financial planning, mentoring and coaching;
•       extending the Drought Communities Program to include 14 more councils facing drought, bringing the number of municipalities involved to 110; and
•       $20 million for regional agricultural show societies to upgrade infrastructure.

Mr Chester said it was important to have a range of initiatives to tackle the drought on a number of fronts and all levels of government needed to do more to reduce costs for local farming families.

“This is the worst drought in 100 years in some parts of Gippsland and many farmers are struggling to meet costs such as bank loans, municipal rates, feed for stock, re-establishing pasture or transporting stock for agistment,” he said.

“The length of the drought has exhausted farmers’ cash reserves and some are not in a position to meet their ongoing costs, let alone re-establish their properties when better conditions return.

“This fresh package of initiatives is a positive step but we need a coordinated recovery plan which recognises it will take several years for farmers to get back to full profitability. The drought is affecting farmers differently across Gippsland, so I don’t expect one single measure will be the answer for them all.

“We all know there is more to be done across all levels of government. One thing farmers are telling us consistently is rate relief is urgently needed – and that’s where the State Government needs to step in.

“It’s disgraceful that Premier Andrews still hasn’t visited Gippsland to see the areas worst affected by drought. It’s no wonder our farmers feel frustrated and forgotten.

“We need to work together as a matter of urgency to do more to help our farming families.  Premier Andrews has been invisible during this crisis and must do something that makes a real difference to help out.”

Mr Chester also welcomed the inclusion of Latrobe City in the Federal Government’s Drought Communities Program.

“Latrobe City is now eligible for up to $1 million for local infrastructure and other drought relief projects for communities impacted by drought under the Drought Communities Program,” Mr Chester said.

“This program, which already includes East Gippsland and Wellington shires, is designed to generate jobs and support local businesses and suppliers in areas where employment has been adversely impacted by the drought.

“This inclusion is recognition that the drought is having an impact on communities in the Latrobe Valley area and provides a helping hand to those communities.”

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