Glenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Senator McKenzie. Last month, Minister, you told farmers struggling with years of drought:

A one-off drought relief payment of up to $13,000 for a farming family, and up to $7,500 for an individual is designed to help people determine whether they will be sustainable, should look at succession options or, in some instances choose to sell.

Do you stand by your statement that the drought relief payment is a one-off payment and that farmers should look to sell?

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

Thank you very much, Senator Sterle. The radical expansion and simplification of the farm household allowance was as a result of a farmer-led review into the payment. You, like those of us over here that represent rural electorates, know that the farm household allowance application process was very complex and essentially too long. We've cut that down by more than one-third; we've made substantial changes to the paperwork.

One of the things the farmer-led review actually suggested was that rather than it being a payment for four years in a lifetime of hardship for a farmer, it be changed to four years of payment over a 10-year period, recognising that in a country like Australia farmers will go through more than one period of hardship in their life. We've accepted that recommendation. We've also accepted all of the recommendations made by the review, and, as such, we estimate that over 30,000 farmers and their families who currently are not in receipt of this payment, but potentially could be, will become eligible. Part of the problem with farmers accessing this much-needed support is that they self-assess and think they're not going to make it. So I urge farmers to have a crack with their rural financial counsellor.

With respect to the legislation before the Senate this week, the lump sum payment of $13,000 that you speak of is for this financial year; it's $13,000 for a couple, or $7½ thousand for a single farmer—bearing in mind, 80 per cent of farmers are partnered. The legislation also contains a rule where I'll be able to make a rule, going forward, for additional lump sum payments, when and where they're required. I've made it very public that I've committed to do that. As long as the drought goes, we'll be standing with our farmers and supporting them.

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

Order, Senator McKenzie. Senator Sterle, a supplementary question?

Glenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | Link to this | Hansard source

Yes, and I look forward to finding out if the minister believes that farmers should sell out. Minister, when will drought-affected farmers receive the one-off lump sum payment? Can you please let the Senate know the specific date.

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

Senator Sterle—through you, Mr President—I want them to receive it as soon as possible. We can't get that done till it's legislated. That's our job as a Senate this week—to get this legislation passed so we can get royal assent and we can actually get this payment out to farmers. I'm hoping we can get this done by the end of the year. If the Senate gets behind the legislation, we're ready to go behind the scenes to get this payment able to be applied.

I'm very happy to reinforce what I've always said, and what the National Farmers Federation have said, and what AgForce has said and the VFF have said, that farmers are business men and women and they need to make decisions. Sometimes that is about selling up and getting out. Sometimes it's about changing how I farm or how my business is structured to make it more profitable. Sometimes it's about saying: 'You know what? I'm succession planning, and the next generation can have a crack.' These are valid decisions. (Time expired)

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

Senator Sterle, a final supplementary question?

Glenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | Link to this | Hansard source

Minister, what advice would you have for farmers struggling with no financial assistance because of the Morrison government's decision to cut farmers off the farm household allowance?

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

Well, let me reassure farmers who are on our farm household allowance—which is not just a drought payment; it's actually for farmers in hardship—we are standing with you. We are not cutting you off. This is a time limited payment—as also endorsed by the National Farmers Federation's own drought strategy; they also believe that it should be a time-limited payment—which is why we've got this additional response, in the ability to create lump sum payments as the drought continues, and we will do that. But if you are a farmer who has been assessed and is ineligible for farm household allowance, despite the changes we're making to off-farm and on-farm income and asset changes et cetera, then we do have a loan facility, through the RIC, of up to $2 million, interest free and repayment free for two years, and then interest only until year five, which is—

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

Order, Senator McKenzie. Senator O'Sullivan.