Farmers welcome $558 million pledge
THE Federal Government announced more than $558 million in support for Victorian dairy farmers last Wednesday, following a pledge of $11.4 million from the State Government and industry.
South Gippsland farmers welcomed the announcements and the acknowledgement from both state and federal politics that their industry is in trouble.
The federal package includes $555 million in dairy recovery concessional loans; $2 million to establish a commodity milk price index; $900,000 for additional Rural Financial counsellors; and $900,000 for Dairy Australia’s Tactics for Tight Times program.
The State Government’s $11.4 million support package was put together in consultation with the Dairy Industry Taskforce.
This package includes a $5.2 million industry contribution, comprising $1.4 million from the Gardiner Foundation, $2.8 million from Dairy Australia and up to $1 million from Murray Goulburn.
As part of the package, $4.5 million has been set aside to support affected farming communities.
The State Government has also extended the back to work scheme to make members of a dairy farm household an eligible category of employee.
Employers will receive up to $5000 when they hire someone from a farm household affected by the dairy crisis.
Poowong dairy farmer Anna Faudell welcomed the aid but said the assistance was only tackling a portion of the problem.
She said more needs to be done to stop supermarkets warring over milk prices and to prevent dairy processors setting prices too low and cutting farmers’ margins.
“The assistance packages will be great for the people who need them. We are on a small farm and have savings in the bank, so we got angry, got over it and now we are moving on,” she said.
Tim Cashin farms in Leongatha South and believed the State and Federal governments had raised awareness of the industry.
“It is a major industry in Victoria and South Gippsland and it helps to keep local communities going. The flow on effects of a time like this are phenomenal,” he said.
Inverloch dairy farmer Warren Redmond said the Federal Government support package was positive.
“It is a good thing for the dairy industry, which could help to reinstate a bit of confidence that may have been lost,” he said.
“It will make a big difference for those who need the help.”
McMillan MP Russell Broadbent welcomed the Federal Government announcement.
“This is very welcome news for communities across McMillan who have been hit hard by this decision,” he said.
Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce said the government would deliver immediate assistance to dairy farmers in hardship.
“Fifty five million in concessional loans will be made immediately available for Murray-Goulburn and Fonterra suppliers this year, as well as access to $500 million in concessional loans over 2016-17 and 2017-18,” he said.
Gippsland South MP Danny O’Brien has urged Gippsland dairy farmers to take up the support. He said the dairy assistance package announced by the State Government would help but the government needed to do more.
Mr O’Brien said Murray Goulburn and Fonterra had much to answer for the current crisis and should be reconsidering their decisions to retrospectively claw back payments.
“These companies have caused the problems through mismanagement and they should be doing more to assist farmers to get through the crisis,” he said.
South Gippslanders were among the dairy farmers and rural Victorians to raise awareness of the plight of dairy farmers at a rally in Melbourne last Wednesday.
Lobby group Farmer Power organised a march from Federation Square to Parliament House, via Swanston and Bourke streets.
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