Crisis payments to farmers on the mend

Recommendations have been made in a brief report out of four dairy roundtable meetings held late last year in regional Victoria, which saw talks held between government officials and farming communities hit by the dairy crisis that emerged during last year’s federal election campaign.

Each forum attracted 20 to 40 farmers and farm community members the report said and was also attended by officials from the departments of federal Agriculture and Water Resources Minister Barnaby Joyce and Human Services Minister Alan Tudge.

“The department is exploring the benefits and costs of complementary ‘crisis’ payment mechanisms that would be linked to but not be an extension of FHA,” the report said.

“One on one intensive support was provided to 23 customers during the sessions, with a number of FHA claims being finalised as a result of working with DHS representatives at the sessions - back payments to these customers have now been made.”

The report was released this week, as legislative amendments to improve flexibility of the FHA, around farm asset definitions, were also presented in federal parliament by Mr Joyce.

That adds to his immediate response in December last year after the dairy roundtable meetings - where he was represented by Victorian Nationals Senator Bridget McKenzie - which included introducing a ‘minister’s rule’ that enables up to $1.1 million in net water assets to be exempted from the FHA assets test.

This week, Senator McKenzie said Mr Joyce’s rapid response and that of Mr Tudge and his Department was welcomed - but more work was also underway, reviewing relevant program and administrative arrangements.

She said the report was driven by stakeholder feedback about how the Coalition government’s dairy support package was being rolled out – but broader industry issues were also raised about bureaucratic concerns in delivering concessional loans to farmers and broader dairy industry issues.

Senator McKenzie said the forums heard a lot of complaints raised about the complexity of the application itself for the FHA and whether it was “fit for purpose” for farming businesses.

She said moves to support farmers affected by reduced farm gate milk prices in May last year and other crisis help linked to the FHA, were underway.

“As we know a lot of farming businesses are trusts and as soon as you tick the trust box you go into the Complex Claims Department of Centrelink which then adds time on to the assessment of your particular application,” she said of the FHA process.

“I think there’s some streamlining that can be done to ensure we have a system that is fit for purpose.

“The vast majority of Centrelink customers are typically individuals so we need a system that can also deal with the fact we have farming businesses and we have a streamlined application process that’s not adding unduly to the processing time.”

Senator McKenzie said her ongoing talks with Mr Tudge since the regional forums included a conversation this week where, “he reiterated to me his commitment to ensuring Centrelink is responsive to farmers and to the roll out of dairy assistance package”.

She said the minister’s department was now trialling a range of new measures including launching a pilot program on January 30 for assessing new FHA applicants.

Senator McKenzie said that trial involved a “new dedicated FHA team”, to deliver the program by addressing the immediate needs of farmers needing crisis support.

She said “from the first phone call, right through to the final payment”, rather than FHA applicants having to tell their story to multiple Centrelink officers over time, “which was frustrating for farmers”, they would access the dedicated team of officials.

Another issue raised at the forums was that when Centrelink required more documentation from farmers, they waited until the applicant contacted them after weeks or months, before advancing the claims.

“Centrelink being much more proactive and actually having outward bound phone calls, to assist farmers through every step of the application process, are some of the actual practical steps they’ll be taking,” she said.

“At any stage a farmer in severe hardship whose provided all of their application information will be able to have their application processed within five days and I think that’s fantastic for managing those crisis situations.

“Obviously they’re the sort of changes that are occurring and additional training and education for Centrelink officers is ongoing and also welcome.

“The process of bringing the Department of Human Services, out of Canberra and onto the ground to actually see and hear form farmers directly, was very, very useful.

“I’m confident the Department wants to be as responsive as possible now these things have been highlighted to them and they’ll be working actively to address them internally, which is appropriate.

“Both Minister Joyce and Minister Tudge have acted decisively on the diary round tables held just before Christmas and I’m really buoyed that this is one of the first agenda items we’ve dealt with in the first week back in parliament, to help those dairy farmers.”

Senator McKenzie said the report outlined measures that didn’t need to be legislated for and can be done internally, by the government departments, like the new trial.

“The Department of Human Services, Centrelink, has initiated a raft of changes to the FHA program, to start addressing some of these issues,” she said.

Senator McKenzie said the dairy roundtables also heard other issues other than the FHA program, including around the behaviour of dairy processors and retailers and concerns with the governance of dairy industry representation.

But she said following a dairy industry symposium held in August last year, the government had initiated an Australian Competition and Consumer Commission inquiry, into the dairy industry that was ongoing, nationwide.

The ACCC investigating the competitiveness, trading practices, and transparency of the Australian dairy industry and must submit a report to the federal Treasurer before November 1 this year.

She said while one public forum to gather feedback was being held in each state, Victoria would have three hearings which was “right and just - to deal with our distinct dairying regions”.

“I’m really encouraging dairy farmers right across the country to participate in this inquiry because the ACCC can’t investigate something it doesn’t know about,” she said.

“If you don’t come forward with issues you believe are anti-competitive behaviours or good ideas about how to help make the dairy industry sustainable or indeed any unconscionable conduct by any player in the dairy supply chain, then the ACCC will not be compelled to deal with it.

“And the ACCC has a whole raft of powers available to them to ensure confidentiality is maintained, if giving out that type of information would compromise anyone’s commercial position.”

Shadow Agriculture Minister Joel Fitzgibbon said Mr Joyce’s drought policy was “a failure and people cannot access the Farm Household Allowance”.

“You will remember I asked him this question in the House and he embellished the effectiveness of the Farm Household Allowance and then doctored his Hansard because he had so dramatically mislead the House and we know where that saga took us, the sacking of a highly qualified and highly regarded public servant in this town,” he told Canberra media this week.

“Barnaby Joyce is putting a Bill into the Parliament he says will finally fix the Farm Household Allowance.

“Well I hope so, but for the last three years he has been denying there is a problem and for the last three years farmers have been suffering because of their inability to get access to that support, the support Barnaby Joyce has said has no fault.

“I am glad three years on he is finally doing something about it but it is three years too late.”

Victorian rural independent MP Cathy McGowan who also attended the dairy roundtable meetings, welcomed the report and changes to the FHA program.

“The real issue is that people can’t get access to Centrelink because there aren’t enough resources to process applications,” she said.

“I look forward to the Minister acting as soon as possible on the report.

“The Minister’s response shows the importance of having a strong local, independent voice working with dairy farmers to deliver effective results.”

Victorian senior Nationals MP and cabinet member Darren Chester also welcomed moves to expedite the FHA delivery.

“We are listening to the concerns of farmers and we have moved to help speed up the payment of FHA and more accurately treat farm assets for eligibility,” he said.

“The Farm Household Allowance payment is vital to farmers who need to put food on the table and keep paying the bills, when they are experiencing financial hardship.”

WA rural Liberal MP Melissa Price said the Federal Government wanted to ensure the FHA continued to meet its intent, supporting farmers in hardship to get back on their feet.

“This government is listening to the concerns of farmers and we have moved to help speed up the payment of FHA and more accurately treat farm assets for eligibility,” she said.

“We have acted where we can in the legislation and work is continuing to improve the efficiency of FHA application process by the Department of Human Services.”