The Turnbull Government has agreed to extend much needed support to Victorian dairy farm businesses affected by the retrospective pricing decisions of National Dairy Products (NDP), through Dairy Recovery Concessional Loans.
Federal Member for Corangamite, Sarah Henderson, said the Coalition Government is standing by dairy farmers affected by retrospective cuts to farmgate milk prices beyond their control.
“The Coalition is delivering a $579m Dairy Support Package to support dairy farm businesses affected by the decisions of Murray Goulburn and Fonterra to make retrospective cuts to farmgate milk prices late in the 2015-16 season,” Ms Henderson said.
“So far (at 18 November 2016) $57.6m in Dairy Recovery Concessional Loans have been approved to 102 dairy farm businesses across Victoria, New South Wales, Tasmania and South Australia.”
“Recently the Australian Competition and Consumer Commission (ACCC) advised that, similar to the actions taken by Murray Goulburn and Fonterra, NDP had retrospectively cut farm gate milk prices to suppliers in 2015–16.”
“In light of this new information the Turnbull Government has taken immediate action to amend the Dairy Recovery Concessional Loans eligibility criteria to include farm businesses that supplied milk to NDP in 2015–16.”
“This will provide meaningful assistance to farmers who not only experienced retrospective price cuts but who have not been paid for milk supplied in recent months.
“NDP suppliers will be able to apply for Dairy Recovery Concessional Loans upon agreement by the Victorian Government.”
Under the Coalition Government’s new Farm Business Concessional Loans Scheme, $250 million in concessional loans funding is available until 30 June 2017 to assist farmers to rebuild their businesses following drought and farmgate milk price cuts.
“The Coalition is determined to ensure a strong future for dairy and has established an inquiry into the national dairy industry. The inquiry is being undertaken by the ACCC’s newly established Agricultural Unit, following an $11.4 million commitment through the Agricultural Competitiveness White Paper.”
“The ACCC inquiry commenced in November and is investigating the industry to uncover inefficiencies, inequities and to identify a way forward. As part of its investigation the ACCC is asking for urgent feedback through its recently released Issues Paper.”
Feedback in response to the Issues Paper is sought by 12 December 2016. You can contact the Dairy Inquiry team by email at dairyinquiry@accc.gov.au or phone Amy Bellhouse on 03 9290 1405. The final report is due to be released in November 2017.
Victorian dairy farmers who are not eligible for Dairy Recovery Concessional Loans because they did not supply Murray Goulburn, Fonterra or NDP, may be eligible for a Drought Assistance Concessional Loan due to drought conditions in early 2016.
It is important that farm businesses do not self-assess their eligibility for the Farm Business Concessional Loans Scheme. Victorian farmers should contact Rural Finance on 1800 260 425 or ruralfinance.com.au for assistance and details on the application process.
For more information regarding concessional loans please go to: agriculture.gov.au/loans.
7 December 2016