There’s been growing frustration among Victoria’s dairy farmers at the Federal government’s concessional loans scheme, which many have said falls well short of what’s required.
Wyena Holstein’s Donna Edge, Carpendeit, was one of many dairy farmers seeking clarification – and expansion – of the $30 million Dairy Recovery Concessional Loan scheme.
“Lessees and sharefarmers are not able to access the concessional loans – they’re left out in the cold, and it sucks,” Ms Edge said. “They came out and big noted themselves - I don’t want a loan, I just want a sustainable milk price.”
Ms Edge said she couldn’t understand why the milk price was still set at an export rate.
Victorian agriculture minister Jaala Pulford said it appeared the pool would provide finance for less than two per cent – 70 of 4300 – of the state’s farmers.
The loans of up to $200,000 will be offered at 2.7 per cent interest, over 10 years, through Rural Finance.
“While it’s welcome, it is a far cry from what Victorian farmers deserve,” Ms Pulford said.
“Under the arrangements, only farmers supplying Murray Goulburn and Fonterra during the 2015/16 milk season will be able to access the scheme.”
Quotes from Peter Walsh, Leader of the Nationals and Opposition Agriculture spokesman:
“While Jaala Pulford was busy playing politics with this important financial support, dairy farmers have been left waiting.”
“This support is exactly what dairy farmers told Barnaby Joyce would help and it’s beyond belief that Jaala Pulford delayed the process for her own political amusement.
“Compared to the Federal $550 million package, her state government has gathered up $11.4 million of state and industry funds which is of course welcome, but it doesn’t go far enough.
“Farmers have requested direct relief measures, like rates rebates and waiver of charges like fixed water cost, and this is what Jaala Pulford should be working on instead of politically-motivated posturing that doesn’t help a single farmer.”
But opposition agriculture spokesman Peter Walsh accused Ms Pulford of playing politics, leaving dairy farmers waiting.
“This support is exactly what dairy farmers told Barnaby Joyce would help and it’s beyond belief that Jaala Pulford delayed the process for her own political amusement,” Mr Walsh said.
“Compared to the Federal $550 million package, her state government has gathered up $11.4 million of state and industry funds which is of course welcome, but it doesn’t go far enough.
“Farmers have requested direct relief measures, like rates rebates and waiver of charges like fixed water cost, and this is what Jaala Pulford should be working on instead of politically-motivated posturing that doesn’t help a single farmer.”
United Dairyfarmers of Victoria (UDV) president Adam Jenkins said the loans offered another avenue to farmers who could not take on more bank debt or were receiving assistance from a processor.
He said the UDV had been assured it would not be a “bureaucratic process” to get the loans.
“From the UDV perspective, if they are having real difficulty in accessing loans, we would like to know about it.”
He said it appeared inequitable that the loans would only be available to Fonterra and Murray Goulburn suppliers, and not leaseholders, sharefarmers or those with other processors.
“We need to be advocating how we support those people through this particular situation, they may be very good farmers and have been caught in a situation not of their making.”
Ms Pulford agreed the scheme appeared to disadvantage the 20pc of producers who were sharefarmers or lessees, many of whom were young and may not meet the loan requirements.
“The Coalition needs to explain why it has removed the financial hardship test for the Dairy Recovery Concessional Loans, which prioritises loans towards those who are in greatest financial need,” Ms Pulford said.
“They should also reconsider the interest rate they are offering and confirm what funds will be available after 31 October.”
Bullaharre, near Cobden, farmer Craig Dwyer, said the scheme was “pretty pathetic.
He said he did not think elegibility criteria were as broad as they could have been.
“National Dairy Products suppliers have missed out, they haven’t had the clawbacks, but sharefarmers are missing out, lessees are missing out and Kiwis are missing out – it’s a very narrow focus.”
Nerenna, Gippsland MG supplier Montana Carew said she was still trying to find out the details of the package.
“Everyone wants to know now, so they can plan for the year ahead,” Ms Carew said.
Federal Agriculture Minister Barnaby Joyce has been contacted for comment.
