Help is on the way for struggling dairy farmers, with the agriculture minister announcing a federal assistance package this morning.
The Coalition Government will provide $555 million in concessional loans for dairy farmers who have been doing it tough since milk processors unexpectedly slashed the price paid to farmers in response to weaker demand and a higher Australian dollar.
The Coalition will be making immediately available $55 million in Dairy Recovery Concessional Loans for Murray-Goulburn and Fonterra suppliers this year, as well as access to $500 million in concessional loans over 2016-17 and 2017-18 years.
The recovery loans will be for terms of 10 years and will be funded by expanding the drought concessional loan scheme to include dairy-specific criteria.
The government will also establish a commodity milk price index to enable farmers to follow price trends.
We’ve listened clearly to what the dairy farmers want, and what they want is access to concessional loans at the cheapest rates we can possibly get,” Deputy Prime Minister Barnaby Joyce said.
Murray Goulburn slashed milk solids prices from $5.60/kg to between $4.75 and $5/kg because of a global slump, with competitor Fonterra doing the same shortly after.
In the past week, many Australian shoppers have shown their support for struggling dairy farmers, sharing pictures on social media of their supermarkets with empty shelves, where local milk products usually sit.
It comes as farmers prepare to march on Parliament House in Melbourne in a call to action over the crisis.
The two-hour rally starts from 11.30am today.
Package includes:
*$555 million in dairy recovery concessional loans.
*$20 million to fast track the upgrade of the Macalister Irrigation District.
*$2 million to establish a commodity milk price index, for greater transparency.
*$900,000 for an extra nine rural financial counsellors in VIC, TAS, SA & NSW.
*$900,000 for Dairy Australia’s `Tactics for Tight Times’ program.
*Appointment of Department of Human Services Dairy Industry Liaison Officer.
*Fast tracking of Farm Household Allowance applications.
*Re-direction of two mobile service centres to dairy regions, so farmers can access government assistance.
