At last, a win for starter ventures

There are times, many times, when you feel like banging your head against the wall for the lack of progress you seem to be making with authorities, governments and bureaucrats at all levels.

There are times, many times, when you feel like banging your head against the wall for the lack of progress you seem to be making with authorities, governments and bureaucrats at all levels.

These are times when you wonder why you waste your breath, waste your time putting pen to paper to try to improve the lot of those you represent yet you end up with little or nothing to show for it.

But now and again you win one and, you suppose, that win makes it all worthwhile.

For years and years, the Tasmanian Farmers and Graziers Association (TFGA) has been pressing for some recognition by government of the long lead time that farmers often face between starting a new venture, a new crop, and actually deriving some revenue from that enterprise.

There are many examples of that but the situation is typified by private forests and, to a lesser extent, commodities such as hazelnuts and grapes. It’s a long time between making the investment and recouping some dividends.

That is why we have been arguing for a scheme similar to HECS for students, the Higher Education Contribution Scheme. In effect, it is a loan for tertiary education that is repayable when the student reaches a certain income threshold. It has always seemed to us to be applicable, in a different form, to farmers, particularly new farmers just embarking on their businesses.

This week, those years of the TFGA putting the HECS-style scheme on their State Budget wish-list bore fruit. The Government announced a $10 million low interest loan scheme to assist primary producers to develop their businesses, particularly in the early years.

It’s just what the doctor ordered and, obviously, it’s not before time. Agriculture is breaking out everywhere, driven by producer confidence and the irrigation roll-out.

We have been saying for years now that irrigation is the game-changer here, but it is an expensive investment when you are starting out and, presumably, it isn’t going to get any cheaper if you miss out buying water off the plan, as it were.

The loan scheme that the Government announced covers farmers seeking to invest in irrigation infrastructure but who otherwise might not be able to afford that investment. The question has always been, can you afford not to?

So full marks to the Government for delivering on our wish-list.

This week also saw the release of a report by the Australian Centre for Agriculture and Law at the University of New England into the real cost to farmers of maintaining their environment and natural resources. It involved the Tamar Valley branch of the TFGA and Tamar NRM.

Essentially, the report drew attention to the financial burden on farmers, some $3 billion annually across the nation, but a burden little understood and certainly not shared by urban communities, who have an expectation that the landscape will be preserved, native vegetation enhanced.

The report concluded that farmers manage the majority of the Australian landscape on behalf of all Australians yet are the least supported of all the OECD countries.

That stewardship comes at an enormous price to farmers and it is a cost that has to be shared.
That’s already on the wish-list and we’ll be pushing it.

This article first appeared in Tasmanian Country on 12 June 2015.
TFGA president Wayne Johnston