Timing of drought help questioned

While the exact time frame is still unclear, the Farm Finance Concessional Loan Scheme (FFCLS) already being delivered to struggling Victorian producers by Rural Finance will provide a template for the new fund's roll-out.

According to the Victorian Farmers Federation (VFF), producers must be able to demonstrate a one-in-20-year rainfall low to qualify for assistance.

Based on Bureau of Meteorology charts, farms in the southern Wimmera and northern Mallee will qualify, along with areas inside the triangle encompassing Bendigo, Ballarat and Horsham.

The five-year loans will have a four per cent variable interest rate and can be for up to $1m.

Operational costs will be covered – a crucial point for farmers.

"We're happy with the package but it's not fully signed off on," VFF president Peter Tuohey said.

"It's approved and the interest rate is set, but it's not looking like it's going to happen until early in the new year."

Rural Finance general manager Peter Nee said FFCLS had paved the bureaucratic pathway for the loans and he hoped the scheme would be quick to roll out.

"The program will be very similar to FFCLS," Mr Nee said.

"It's a national scheme already working in other States so it's a matter of getting the relevant documents in place for Victoria.

"Certainly people should start thinking about whether they're likely to apply.

"There might be a requirement for a drought management plan, and part of that plan should say how the drought has affected their farming operations."

The drought package was put in motion by Agriculture Minister Peter Walsh before government operations went on hold for the State Election.

"Prior to the Victorian Government entering caretaker mode, I signed directions for the Department of Environment and Primary Industries to work co-operatively and quickly with the Commonwealth Government to ensure these funds are made available as soon as possible," he said.

On Monday, before the announcement was made, shadow Victorian Agriculture Minister Jacinta Allan said the Coalition had been slow to act on the matter.

"This is not something that's happened overnight; there have been signs that farmers in the north-west were going to face some problems quite a while ago, and it's disappointing the government and Peter Walsh haven't responded quickly enough," Ms Allen said.

The Labor party has not yet announced a drought relief policy in its election campaign, citing difficulties dealing with the Federal Government on the issue from State Opposition.

"Jacinta Allen has said loud and clear, yet again, that Labor doesn't understand what's happening in rural and regional Victoria," Mr Walsh said.

"Playing politics with drought is a disgrace and she should hang her head in shame."

Ms Allan's office was invited on Tuesday and Wednesday to comment further on the issue before Stock & Land went to press but did not respond.

However the federal shadow minister for agriculture, Barnaby Joyce, has accused both State and federal Coalition governments of playing politics themselves.

"I think it's a very cynical announcement, one that could have been made months ago," Mr Fitzgibbon said.

"I've been inundated with farming families who say they can't qualify for the concessional loans... according to the Minister's own figures there's been over 1000 farming families who have been denied loans or still have their applications pending."

There were also doubts the plan would ever be finalised when Victorian parliament resumed, he said.

– DANNIKA BONSER

For Bureau of Meterology rainfall deficiency charts visit www.bom.gov.au/climate/ada/