FEDERAL and State Governments seem to have a dazzling lack of understanding of the part they have played in creating the problems that confront agriculture.
That's the appraisal of Pastoralists and Graziers Association president Tony Seabrook, coming off the back of calls by the Muntadgin Farming Alliance (Farm Weekly, May 15) for a paradigm shift in thinking about agriculture.
"Agriculture and manufacturing are the engine room of our economy and both are in trouble," Mr Seabrook said.
"It is time for a paradigm shift in the way the government interfaces with industry.
"As a nation, we cannot afford to import more than we export.
"With an accumulated deficit of nearly $700 billion, we should be totally focused on increasing our export capacity instead of flip-flopping around with unproductive and unaffordable social policies that only succeed in distracting us from the big issues.
"Mining has been a great gift to Australia, but on the basis of wealth retention and longevity, it does not match agriculture.
"Australia, through short-sighted and foolish policy, has far surpassed the United States in becoming one of the most expensive production systems in the world.
"There will be no place for us in the world, in spite of what our politicians say, unless we can compete profitably."
WAFarmers vice president Tony York also supported the call for a paradigm shift in thinking by governments.
"WAFarmers has made its submission to the Agriculture Competitiveness White Paper, outlining many solutions to the problems facing the agricultural industry," he said.
"The organisation has spelt out very clearly how changing government policy settings can have a meaningful beneficial effect on farmers.
"For example, the government could provide a big impact by changing the overseas labour restrictions.
"The population decline in the industry has placed more emphasis on employing casual labour on farms.
"A lot of effort is spent both in time and money on teaching individuals who do not return to the same enterprise twice.
"Farmers are forced to train new individuals every year without having the benefit of being able to use them again.
"It creates instability, uncertainty and a higher degree of risk for the business.
"The government should establish a new visa class which will allow 417 visa holders to return to the same employer each year.
"This will allow Australian farmers to re-employ already skilled and experienced labour."
Mr York said the WAFarmers White Paper submission called on the government to enforce a mandatory supermarket code of conduct which would result in manufacturers having greater ability to return sustainable farmgate prices and provide some stability to suppliers.
"It is important that Australian farmers are able to operate on a level playing field," Mr York said.
"We believe any free trade agreements should include agricultural products very early in the agreement.
"The imposition of export tariffs by other countries on farm inputs such as fertiliser and import tariffs imposed on our products going into other countries, impacts on competitiveness and farm profitability."
On governments mitigating risk for farmers, Mr York said WAFarmers had called for a lift in the upper limit of $400,000 for Farm Management Deposits (FMD).
"Volatility of seasons often mean large spikes of income over $1 million even when five-year average incomes are close to zero," Mr York said.
"FMDs should be enough to cover the input costs for at least two years of production.
"We also believe a drought strategy should consider timely income support to those who actually need it, low interest loans for carry-on finance and minimal red tape.
"The stand-off in allowing drought funds to flow to WA farmers is unacceptable."
Mr York said rural banking sources confirmed farm equity levels had fallen as a consequence of the prevailing adverse conditions.
"Since 2009 average farm equity has decreased from about 80 per cent to current levels of around 70pc, with falling land values compounding the issue," he said.
"The underlying problem for WA farmers, should this trend continue, is that the capacity to maintain or increase future production, or indeed absorb price volatility, will be constrained because the debt-to-income ratio will likely increase resulting in limited finance options."
Mr York said WAFarmers had presented the Government with a list of suggestions to facilitate alternative funding models which essentially reflected investing in the industry rather than hands-outs.
Ken Wilson
Farm Weekly's machinery writer.
Farm Weekly's machinery writer.
