Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Senator McKenzie. Minister, can you please inform the Senate as to how the Liberal-National government is supporting farmers and communities across Australia who are currently experiencing prolonged and devastating drought? And how is the government building resilience against future droughts?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

Thank you, Senator Davey, for your question. I know that it is something near and dear to your heart as a senator who bases herself out in regional New South Wales, where so many of our farmers are struggling with the drought. The Liberal-National government continues to stand with our farmers and regional communities as they struggle with the ongoing drought. We know that heading into summer the rain signs are not great, and that is why we're taking immediate action in the here and now, but we're also assisting communities and the agriculture sector more broadly to prepare for the future.

Support in times of hardship is part of what is needed to help farmers and their communities through these difficult times, which is why on 27 September, with the Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management, Minister Littleproud, the Prime Minister and I headed out to David Gooding's farm in Dalby to announce an additional $100 million worth of support to our drought-affected communities—radically simplifying the farm household allowance, its application process and its key policy settings; resuming the Drought Community Support Initiative, which puts $3,000 cash into the hands and onto the kitchen tables of these farming families; and extending the Drought Communities Program, making sure that 13 additional local councils can access $1 million to build local projects and, therefore, employ locals.

Firstly, for those here-and-now perspectives, we've got the farm household allowance, additional rural financial counsellors, the Drought Community Support Initiative, important mental health services, wellbeing support, concessional loans and generous taxation measures. Secondly, there are broader measures in the medium term. Thirdly, there are programs to assist the long-term resilience and preparedness, including our $5 billion Future Drought Fund. The message to farmers and our communities across Australia is very clear: we know that times are tough, but we will stand with you now and through the recovery.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Davey, a supplementary question?

Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

How will the changes to the farm household allowance that we've put through benefit and make it easier for farmers experiencing hardship to receive support from this government?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

The farm household allowance was created with strong bipartisan support. In fact, it was actually an initiative of the Labor Party, although they only established FHA for three years in any given lifetime of a farmer. Since its introduction in 2014, over $350 million in FHA payments have been made to over 12½ thousand farmers going through financial hardship and their partners. On 10 September our government announced an independent review into the farm household allowance, and our response is being enacted on receiving that review. We'll be passing legislation through this place in coming weeks and months to ensure that our farmers have that radical simplification of the farm household allowance that they've been calling for, including a simplified asset test, including changing the time limit from four years in total to four in 10 years— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Davey, a final supplementary question?

Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

Finally, as the drought is ongoing and as it bites harder, what are the risks to both the agricultural sector and our broader communities if we do not assist the sector and the flow-on value add?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

Our government recognises that farming in Australia is a long game and that governments can't make it rain. But what matters at the moment is that some of our farmers can't put food on their own table, which is ironic, because they're putting food on everyone else's table and clothes on our back. Supporting them in times of hardship is exactly what's needed to help our farmers and their communities through these difficult times, and supporting our drought-affected farmers and communities remains our government's No. 1 priority, which is why we have committed over $7 billion in programs. The wealth of our entire nation is generated across regional Australia, so it's not just these communities that are doing it tough. It's estimated that up to $12 billion will be the hit to our national economy because of the drought. Our farmers feed people across Australia as well as millions across the world. I and the rest of the government welcome bipartisan support for drought measures, particularly around the farm household allowance. I hope that continues.