Dated: 11 May 2011

The Tasmanian Farmers and Graziers Association (TFGA) today welcomed the Federal Government’s commitment to funding for key agricultural programs, but said it fell short of the investment required to allow farmers to make their full contribution to national food security.

“We welcome funding in the area of Environmental Stewardship, regional infrastructure, mental health, regional migration and capital depreciation concessions, but there are some priority areas for which there is no commitment and no forward commitment,” TFGA chief executive Jan Davis said today.

“We can’t boost flagging productivity growth and improve environmental outcomes without an improved commitment to research, development and extension.

“We had sought to reverse the decline in agricultural research and development funding and, while no changes to Rural RDC funding were made, the Government will redirect $33.4 million over four years from the cooperative research centres (CRC) program.

“That does not make economic sense but it also signals a piecemeal approach to dealing with agricultural research and development,” she said.

Ms Davis said she welcomed greater flexibility around Farm Management Deposits for those recovering from natural disasters and the Government’s proposed $5000 instant asset write-off for small business to cover capital purchases such as motor vehicles.

On mental health initiatives she said issues such as depression had taken a huge toll on farmers across the country.

“We hope today’s announcement will go some way towards overcoming this illness that has had such an effect on our regional communities.”

Ms Davis said the an important take-home message the Budget for Tasmanian farmers was that, despite the hype of the Budget going back into surplus in 2012/13, there was a strong risk that it would not.

“It is clear from the Budget papers that Australia’s economic targets are challenging. Not much has to go wrong. The forward estimates are fully linked to mining boom.

“If, for some reason, it falters then growth will as well. If that happens, bringing the budget back into surplus by 2012/13 will not be achieved,” Ms Davis said.
Jan Davis http://www.tfga.com.au/