Eric Abetz (Tasmania, Liberal Party, Minister for Fisheries, Forestry and Conservation) Share this | Hansard source

I thank Senator Boswell and acknowledge him as a great champion for the farmers of this country and as someone who is very aware of the growing crisis that our farm sector is facing because of drought. The present drought, which has continued since 2001, is the worst on record. At the moment, 38 per cent of agricultural land is exceptional circumstances drought declared.

Rainfall data shows that August 2006 was the driest August in 100 years. Large parts of southern Western Australia and south-eastern Australia have had the lowest rainfall on record. Rainfall from December 2005 to August 2006 was in the lowest 10 per cent on record for large areas of the Murray-Darling Basin. As a result, ABARE forecasts that grain and oilseed production will fall sharply by 34 per cent in 2005-06. Wheat production is forecast to fall by around 35 per cent, canola by 46 per cent and rice by 62 per cent. Unfortunately, the Bureau of Meteorology outlook for the end of 2006 is that conditions will not improve.

It is a grim picture. That is why this government will do everything in its power to help offset the damage to farmers and our rural communities from this crisis. Since 2001, the Howard government has provided more than $1.2 billion to more than 53,000 farm families. This figure is increasing by more than $1.7 million each week. At the moment the taxpayer is spending some $29 million a month on income support and interest rate subsidies for drought affected farmers.