Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Water Resources, Drought and Rural Finance, Senator McKenzie. Can the minister outline how changes to the farm household allowance benefit make it easier for farmers experiencing hardship to receive support from the government?

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

Thank you, Senator McMahon, for your question. And I want to thank the chamber for its support on the farm household allowance bill that was passed yesterday. Our farmers contribute significantly to our national prosperity, and many, as we know, are suffering the impacts of drought. Today many of these very same farmers are helping their own communities, or those in other states, with their Rural Fire Service to help fight fires. We want to thank them for their service. It's important to note that, with the drought, there is often bipartisan support for measures to assist. I appreciate the support of the Labor Party, the Greens, Centre Alliance senators, Senator Bernardi and other crossbenchers for frontline support for drought affected farmers.

Yesterday I met with dairy farmers from Queensland and New South Wales who are experiencing hardship from the high input costs of fodder, water and electricity. The farm household allowance works to support farmers in many forms of hardship, whether caused by high input costs or drought or needed in the aftermath of the terrible bushfires scorching much of the New South Wales and Queensland coast. FHA provides farmers and their families with money for basic household necessities while they make decisions about the future of their farm businesses and take action to improve their circumstances, with the support of our Rural Financial Counselling Service.

The passage of the farm household support amendment bill yesterday will result in immediate cash being provided to eligible farmers and their families by Christmas and significant and radical simplification and expansion of farmers being able to access the farm household allowance. We changed the way we treat off-farm income. We have also changed it, for the first time, so that farmers generating income from agistment will have that income considered against their losses. Importantly, it will allow for the minister to make a rule to provide these relief payments to people who have exhausted their first four years on FHA, going forward, without having to come back to the—

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

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

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

Can the minister update the Senate on other measures available to support farmers and communities affected by the drought?

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

Thank you, Senator McMahon. It was great last week to be able to join you to see how the drought was affecting the Barkly cattlemen, who have been destocking for the last 18 months. In addition to the FHA, our government has committed over $8 billion of measures to support farmers, their families and rural and regional communities to get through the drought and to support them well into recovery. We've always sought to provide support in the here and now. That includes the Rural Financial Counselling Service, mental health services and concessional loans, and, for the first time in this package, for it to be available to regional small businesses to help them with interest costs and cash flow issues over the next two years.

Secondly, we have a range of programs for communities to keep people employed in our rural and regional communities, a drought-specific BBRF round of $200 million and 100 gigalitres of water for farmers to help them grow more fodder, which will also help northern farmers. Thirdly, it is about the future and resilience.

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

Order, Senator McKenzie. Senator McMahon, a final supplementary question?

Sam McMahon (NT, Country Liberal Party) Share this | Link to this | Hansard source

How is the Liberal and Nationals government building resilience against future droughts, and is the minister aware of any alternative approaches?

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

We've seen clearly over the last couple of days the horrific impact that drought, combined with fires, is having on our communities across New South Wales, Queensland, South Australia and WA. Our government believes that agriculture has a very bright future in this country, and we want to ensure that our regional communities are vibrant places where people want to come and live and work. We're supportive of that positive future, with a $5 billion Future Drought Fund providing sustainable and ongoing much-needed cash to support communities and farmers to prepare for the next drought with resilience programs. There is $3.3 billion in funding for water projects to build dams, to assist farmers with on-farm water infrastructure and to build the weirs and pipelines so that we can get water from where it falls to where it's actually needed to grow safe, sustainable and nutritious food not just for us but for the world. We have farm management deposit schemes to help farmers prepare for the future. We will continue to stand with them through this drought and well into recovery.