Talk to any farmer about the problems they face running their business and they’ll most likely tell you one of the biggest frustrations is red tape. Red tape is strangling the agriculture industry and the federal government needs to take immediate action in winding back the unnecessary regulations farmers face on a daily basis.
State farming organisations – including the Victorian Farmers Federation and the National Farmers Federation – have been stating the obvious for years.
But now the Productivity Commission has come to the same conclusion, backing our stance that Australian farm businesses face “a vast and complex array of regulations at every stage of the agricultural supply chain”.
The commission’s report into regulation in the agriculture industry made several recommendations that the government should take up immediately. It’s time landholders got help understanding environmental regulations. It’s time measures were taken to improve the efficiency of road infrastructure investment. It’s time to get rid of duplicated water management information requirements imposed on irrigators.
It’s time because most farmers operate small businesses and the continued regulatory burden they are subject to is a drain on one of our biggest industries – an industry the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) predicted would reach a production value of $63.8 billion in 2016-17.
This report clearly shows that fewer regulations will increase productivity and lower costs, while taxpayers won’t be expected to foot the bill to ensure the regulations are followed. It’s up to the federal government to be bold and act on the recommendations.
But that doesn’t mean it’s as simple as clicking your fingers to make regulatory reform happen. The commission’s recommendations provide a great blueprint for building a more sustainable industry, but the report fails to require lawmakers to ask whether regulation is the only option or whether other compliance initiatives should be used. We should consider measures such as industry codes or self-regulation.
There is still an emphasis on the need to communicate regulations rather than how to reduce them, because the default proposition too often is to regulate. This must be addressed as a top priority. Farmers need to be relieved of the crushing burden felt by over-regulation across the industry.
David Jochinke, VFF president
