Queensland’s peak farming groups have welcomed a State Government investigation into rural finance.
AgForce Queensland CEO Charles Burke and the Queensland Farmers’ Federation CEO Ruth Wade said the broad terms of reference for the all-party committee would deliver a blueprint to assist regional Queensland though the crippling drought.
“With more than 80 per cent of Queensland in drought, the financial pressures that are hurting farmers are flowing through to impact the health of local communities,” Mr Burke said.
“We have been heavily involved at the national level in seeking drought assistance and lifting agricultural competiveness, and this inquiry will assist us to push for reform at the state level.
“While we need to deal with the issues of today, we also see a major problem looming when the drought ends and many producers will have to refinance to restock or replant.”
The State Government today announced a multi-party committee to be chaired by Mt Isa MP Rob Katter, reporting back to Treasurer Curtis Pitt within 60 days.
The committee will look at a range of drought-related issues, including the extent of the problems being faced by regional communities and how the State Government can better coordinate a response.
Importantly the committee will also examine what future measures can be put in place to assist farmers through the drought.
“Farmers are not looking for handouts, rather sensible solutions that will allow existing debt to be managed and governments to be investing in regional infrastructure and communities,” Ms Wade said.
“Peak farming groups will be preparing our own submissions, however I encourage all Queenslanders to become involved in the hearings as they are rolled out across Queensland.”
Farming groups will be urging the committee to take a close at a number of issues, including:
- Developing regular, comprehensive updates on industry viability and debt;
- Delivering greater financing cost relief using QRAA concessional loans and with commercial lenders;
- Reducing risk through establishing a cost of production insurance market and lifting investment intensity in agricultural research and adoption;
- Providing professional business skills training and debt mediation support;
- Assisting non-viable producers to leave with dignity and the next generation to enter farming; and
- Enabling income diversification opportunities as part of developing the north.