Gerard Rennick (Queensland, Liberal Party) Share this | Hansard source

I am pleased to rise in support of the Farm Household Support Amendment (Relief Measures) Bill (No. 1) 2019. Farming means a lot to our country, and farming means a lot to my home state of Queensland. And farming means a lot to me personally. I grew up on a family farm just outside Chinchilla on the Western Darling Downs, and I know firsthand both the importance of agriculture and the challenges and hardship that farming families face. The bush is always close to my heart, and I will take every opportunity in this chamber to stand up for our regions and for Aussie farmers who are doing it tough.

The Morrison government takes the plight of Australian farmers caught in the grip of drought, and now fires, very seriously. The government is on the front foot when it comes to assisting families and farming communities dealing with this awful drought. While this bill fits neatly into the government's three-point plan to fight the scourge of drought in this country by providing immediate support for farmers through the mechanism of the farm household allowance, these reforms are not just about drought. This bill will provide the first instalment of recommended changes to the Farm Household Support Act 2014 and the Farm Household Support Minister's Rule 2014 to extend the short-term safety net for farming families who sometimes must face more than one period of hardship in their lifetime.

It is disappointing to note that, despite significant hardship and natural disasters currently manifest in my home state of Queensland, the state Labor government and the ABC continue to vilify our farmers through punitive legislation and through unfair and vindictive coverage, respectively, and through a general disdain for their contribution and challenges. Whether they are playing politics with dams, shutting agricultural colleges or criminalising sensible land clearing for no other reason than to appease voters in the inner city, the Queensland Labor government has been at war with our farmers and rural communities from day one. It is pleasing to see that Deb Frecklington has committed to a new Bradfield scheme in recent days. Water, dams and irrigation are essential in Australia. This scheme will strengthen our regions and help farmers immensely.

The Queensland agricultural minister is based on the north side of Brisbane, and this tells you everything you need to know about how Labor feels about farmers. Agriculture is not an afterthought on this side of the chamber. Many Liberal-National members and senators live and raise their children in regional communities. Many of us grew up in small towns and on family farms. We care about these communities and we care about Aussie farmers.

Agriculture is one of Australia's biggest exports and one of our most important industries. Agriculture accounts for over 16 per cent of our exports. It is also important to note that, despite volatile markets and despite drought, fire and floods, agricultural production and agriculture exports have grown significantly over the last 20 years and will continue to grow under a Liberal-National government. Yet, despite the many positives, most people know—unless you have been living under a rock—that this cruel drought continues, and it's placing a huge strain on farming communities. Having recently travelled around remote and regional Queensland, it broke my heart to see how bad the situation is. It is especially tough when resilient farming communities must not only face a severe drought but also deal with a city-centric Labor state government which is largely deaf to their pleas for help. Families that have been on the land for generations are on their knees today, and it is impossible not to be moved by their plight or uplifted by their spirit. We have an obligation to help these honest, hardworking Australians, not ignore them or, worse still, disrespect them as nothing more than a lost cause.

Drought is a cruel but all too regular part of Australian rural life. There have been many severe droughts in our country since records began in the 1800s. All along the eastern seaboard, including parts of South and Western Australia, they are currently experiencing some of the lowest rainfall on record. The driest parts are the northern Murray-Darling Basin, especially in northern New South Wales and southern Queensland. While this crisis may not be unique, it is significant and we don't know when it will end.

When responding to a challenging situation such as drought, one possible option would be to let nature take its course and let those who have not managed the short- and medium-term challenges to simply fail and leave the land. Let me be clear: this is not an option for the Morrison Liberal-National government. This government is determined to do all it can, and then some, to help keep farmers and graziers on their properties so, when the drought does break and favourable conditions return, those farms and businesses have a viable platform for rapid recovery and future profitability.

This bill seeks to further strengthen the farm household allowance, which has been available to Australian farmers experiencing hardship since 2014. Over 5½ years of operation, this scheme has paid more than $365 million to over 12,000 needy recipients. We must ensure this support is ongoing, to meet the daily needs of farming families while they struggle with hard times, including but by no means restricted to times of drought. While the original scheme only provided cumulative income support for up to a maximum of four years over a lifetime, this bill will expand the farm household allowance by making it payable to farmers for a cumulative four years out of every 10.

Recognising the current predicament of our farmers and ensuring that we're responsible in how we manage the scheme, the 10-year period for this bill will be backdated to July 2014. This will help ensure that multiple periods of hardship do not lead to the loss of primary producers and threaten the viability of communities in our regions. This bill was drafted in consultation with an independent expert panel, which included farmers and an economist, which ensured that we listened to industry and also got the balance right in terms of ensuring that taxpayer funds were targeted appropriately. While drought may be a primary cause of rural hardship, this government understands rural and regional Australia well enough to know that it is by no means the only cause. This is why the allowance will not be assessed based on the reason why farmers need short-term help but will provide the assurance that help is available.

Another important reform covered by this bill is a loosening of the eligibility criteria, meaning more of those who are in need can access the allowance. Presently, the scheme only allows for a maximum off-farm income offset of $80,000 for people to be eligible. Given how capital intensive agriculture can be at times, this is too low to be a realistic threshold when assessing hardship. The offset cap will now be increased to $100,000 per couple, and a single person may claim the entire cap themselves. New eligibility criteria will also mean that any farm business running at a loss can now offset that loss against all other income, including wages and off-farm investment proceeds. The measures in this bill will also allow losses from primary production to be offset against any agistment income.

This bill will also broaden the minister's discretion around payments to ensure that those in need who may fall short on some criteria are taken care of. The Morrison government understands that regional Australia is about more than just cold numbers. Farming communities are organic. They comprise people and families, and they sustain a way of life essential to the economic strength and social fabric of this nation. In times like these when so many farming families face abnormal hardship, this bill will provide for a further relief payment equivalent to six months of a farm household allowance payment for any farmer who has used up their four years of cumulative income support in the current 10-year period and still suffers financial hardship despite doing all they reasonably could to alleviate the situation. The Morrison government will ensure that our struggling farmers are looked after and not left behind.

Those opposite may question the payments in light of recent and welcome rain in some regions. However, agriculture is not like other businesses. Should a drought actually end in some places—which is a big call in light of past disappointment—after so many years of hardship, pastures will take time to regenerate, herds will take time to recover and profits will take time to be realised. Rain does not flow straight into farmers' bank accounts. These amendments are projected to cost the budget some $47 million over the forwards estimates. This is a small price to pay to provide effective emergency relief to farming families. Strong regional communities and a strong agricultural sector have been the backbone of Australia's success since before Australia was Australia, and we must continue to do all we can to ensure they remain so.

Everything that city based Australians have heard about agriculture over the years is true. Every Australian family needs Australian farmers and graziers. When our farmers do it tough, we all suffer. Along with shelter and water, food and fibre remain our most basic human needs. We must listen to and support our farmers, particularly when times are tough. In the harsh Australian environment, farmers have always faced great risk and financial hardship, often due to factors beyond their control. However, those risks shouldn't be allowed to completely overwhelm future prospects if we want farming communities and the industries they represent to survive. This bill provides a safety net to assist Australian farmers and their partners to better manage the hardship that may come from prolonged, unfavourable climatic, economic or environmental conditions.

I'm proud of the record of the Morrison government in supporting Australian farmers and I back the Prime Minister's drought plan, which includes the measures outlined in this bill to improve the financial situation for farmers and their families facing financial hardship. I commend the bill to the Senate.