Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Drought and Emergency Management. Will the minister outline to the House how the agricultural sector will play a significant role in supporting the Australian economy to emerge from the COVID-19 recession as part of the government's plan?

David Littleproud (Maranoa, National Party, Minister for Agriculture, Drought and Emergency Management) Share this | Link to this | Hansard source

I thank the member for Grey for his question and acknowledge the contribution the electorate of Grey plays to not only South Australian agriculture but also the Australian agricultural industry. Over the last 18 months farmers, not only in Grey but right across the country, have faced numerous challenges: drought, fire, floods in north-west Queensland and now COVID-19. But despite the challenges that they face they continue to just get on with the job. They've been the economic backbone of this country, at the start of this COVID pandemic, in making sure that we are fed and clothed.

Despite these challenges, we should be proud of the fact that Australian agriculture, this financial year, will actually increase to $61 billion. That's an enormous result considering the challenges that our Australian agricultural industry has faced. Some gleaming examples of that are that the export of meat and live animals is up 35 per cent on the five-year average, and horticultural exports are up 34 per cent on the five-year average and this year's winter crop will, in fact, beat the 10-year average, such has been the rain that we've received across many parts of eastern Australia. That's a real advantage for those farmers but more importantly those communities that support them.

We've tried to support them through the drought, with over $10 billion worth of support in commitments; the north-west Queensland floods, with over $3 billion; and the fires, with over $2 billion in direct assistance. One of the key measures around the drought was a $4 billion investment in the Regional Investment Corporation, allowing farmers to refinance up to $2 million of their debt from a commercial bank with no interest and no repayments for two years. That would save a farmer, on interest only, at six per cent, around $120,000 a year. That is money we're taking out of big banks' pockets and putting back into farmers' pockets. We're allowing farmers to use that to replant and restock. They need time for their budgets and the cash flows to repair. That takes time, and giving them that interest-free repayment period allows them to do that.

What happens when you do that for farmers? You put money in their pockets, they invest it in their business with better efficiency and productivity and they invest it in their local communities. It's being complemented by the instant asset write off, lifting the cap to $150,000. Since July, when this came in, there has been a 24 per cent increase in the number of tractor sales, 33 per cent in balers and 14 per cent in front mowers. That's a significant investment putting money back into local communities. We're seeing economic growth in these communities from these measures that are supporting not just agriculture but regional communities. If we support agriculture and we support regional Australia it's good for all of Australia.