Drought pilot up and away Opinion Editorial for The Land Published: 6 May 2010 by David Crombie President National Farmers’ Federation A revolutionary new approach to drought policy is to be piloted by the Federal Government in Western Australia, providing the blueprint for national reform. National Farmers’ Federation President David Crombie says shifting how Australia deals with drought from reactive relief to proactively managing climate risks, is essential. THE new drought scheme to be trialled over 12 months in Western Australia is a sensible, practical and forward-looking approach that takes account of climate risks and proactively manages them. We all know drought relief is a stop gap measure. Farmers, the broader community and politicians are sick of arbitrary lines on maps that determine drought assistance, failing to account for individual farmer needs or safeguard against future droughts. Our plan, which forms the basis for the Federal Government’s trial, is to better drought-proof Australian farms by investing upfront in on-farm climate adaptation and mitigation practices. Things we know can work. This proactive investment in managing climate and drought is designed to reduce the strain on farmers and taxpayers during future droughts. We have long insisted that it’s smarter to invest in drought management and preparedness practices today and, over time, reduce the need for drought relief. For years we have been calling for a shift in the policy focus from ‘drought relief’ to ‘drought management and preparedness’. Underpinned by mutual obligation, we asserted this requires “a generational shift in thinking” and that “we – as a nation – must rethink how we plan for, and deal with, drought in a changing climate”. In February 2010 we called for a pilot scheme, specifying the need to run it in an area not currently drought-declared and based on the principles we have consistently put to government. WA fits the bill. Piloting the scheme in a region not suffering drought provides the template for drought management and preparedness. It gives farmers and the community a good look at how the NFF Feature Articles – Drought pilot up and away -1- new arrangements will work on-the-ground and, importantly, the ability to iron out any kinks well before being applied across the country. Throughout we have had one overriding proviso. Support for families currently in drought must not be changed while they remain in drought. Drought-stricken farm families are under immense pressure and it would be unconscionable to pull the rug out from under them. That enshrined, the NFF backs these overarching principles for a pilot drought scheme: 1. The new scheme is based on mutual obligation. To access it farmers must demonstrate a commitment to sustainable and self-sufficient farming through appropriate business and farm management planning. 2. Individual (rather than regional) assessments are needed to reflect differing farm exposure to climate and drought conditions. Different farms have different needs and, therefore, will be impacted differently. Individual needs, not geographical lines on a map (as is currently the case) would overcome inequity issues within communities and between communities. 3. The Government must support farmers and rural business with the same basic social welfare safety-net available to all Australians, taking into account the particular nature of agricultural businesses. 4. Support for drought management and preparedness needs to be provided through options suitable to farmers and their particular circumstances. Embracing a range of measures, preparedness needs to be more than just spending money on infrastructure. It is about building an understanding of the working environment and utilizing skills, knowledge and experience to best manage local environments. 5. The current Interest Rate Subsidy (IRS) is much-maligned, including by many farmers. The NFF is open to replacing it with a suite of management and preparedness programs – including risk management tools, sustainability and recovery from drought applicable to the needs of the farm sector. The current IRS and rules must not change for those in drought today, with a transition to the new drought policy. An arbitrary cut-off would be disastrous. 6. An emergency provision and trigger is needed. There may be climate events beyond the control of the very best risk management and drought preparedness – catastrophes that may threaten agricultural production and regional communities. In such circumstances, what’s the plan? We understand this will not be part of the trial but contingencies need to be considered as part of any national roll-out. Of course the intent of this reform is to take the sting out of those events by investing upfront in management and preparedness strategies to reduce the need for future relief measures. 7. As a principle for the future, within guidelines, these measures need to be available to eligible farmers, applicable to their circumstances, not just those in drought-declared areas. We are on the brink of a new era in how Australia deals with drought. It is a positive strategy that takes charge of future climatic risks. A trial is a sensible way forward. NFF Feature Articles – Drought pilot up and away -2- The NFF, working with WAFarmers and our other members nationally, will interrogate in detail the operation and progress of the trial to ensure any national system is solid and works for farm families. [ENDS] NFF Feature Articles – Drought pilot up and away -3-