Seeds planted for farm bank plan, no word on sprout times
A Federal Government Minister is pushing for billions of dollars to help workers toiling in some of the worst conditions for decades.
Agriculture Minister Barnaby Joyce has been visiting some of the nation’s most drought-stricken areas, to talk about a funding package to provide much needed respite to farmers.
Mr Joyce wants to set up a special rural debt restructuring bank within the Reserve bank of Australia, which would buy back bad loans from farmers in several states.
The plan is stuck on the fact that sweeping changes to drought policy in recent months mean there is very little avenue for reform.
The Prime Minister says he will look for ways to fast-track a separate plan set up by the former Labor government, which would provide fortnightly payments of $450 to $500 to drought-affected farmers for three years.
PM Tony Abbott says he is keen to get the Farm Household Allowance underway.
"There is a new package of drought assistance coming and what we're looking at is bringing that forward because the problem is now," he said in an interview with the ABC in Brisbane.
"We know there's an issue and we are looking at bringing that new system of relief forward."
Many of the farm, transport and water subsidies that once helped producers under severe droughts conditions have been abolished under adjustments to drought assistance protocols.
Treasurer Joe Hockey says he does not want to bring back the costly and controversial Exceptional Circumstances drought assistance package. He says the “age of entitlement” is over, including for farm businesses.
Mr Hockey has indicated vague support for the introduction of a rural reconstruction and development board or bank (RRDB) within the Reserve Bank. This would serve the dual aim of helping farmers continue their business, and in the future help set up Australia as a “food bowl” to Asia.
The board or bank would buy the estimated $7 billion in bad rural loans from banks at a discount, in order to refinance farmers at lower interest rates.
The RRDB idea has been backed by Mr Palmer, Senator Nick Xenophon and Queensland independent MP Bob Katter.